Financial crisis is like a public demonstration PART 1

I see some similarities between the two. The sentiments are equally worrying. The herd mentality is contagious.  

Some demonstrations are peaceful while some turned into violent.

The recent financial crisis (I hate this word) is the worst since the Great Depression. I wasn’t born yet so I don't know how bad it is. During an interview recently, Warren Buffett said that he has never seen anything like this in his entire life, I bet there are a lot of people even the most seasoned investors have never in their life experience anything like this.

The transition of emotions in public demonstration are similar to what we have seen in the stock market. I won’t name all of them but the more noticeable ones.

In a public demonstration:

• Stage 1 - Enthusiasm
  
• Stage 2 - Excitement 
  
• Stage 3 - Frustrations
  
• Stage 4 - Hysterical
  

Stage 1 Enthusiasm - News of an organized demonstration spread like fire. Enthusiasts or the dissents will join the demonstration (Some emotions already exist or arise in the individuals before they join protest groups; while others are formed or reinforced in collective action itself), starting from a handful of protestors at the beginning to a larger group. More people join in and a predictable flow of behaviour will follow. The group gets bigger. 

Stage 2 Excitement -As the group gets bigger without interference, voices became louder (oh...unity is strength), the large crowds and the intense emotion attracted eccentrics as well as mourners and the numbers grow. Grievances became a norm; the group is ready for a march anytime. 

As the group grows, commotion becomes louder and it will take a deaf man to ignore them.

Stage 3 Frustration or angst - whichever you like. Demonstration usually take a few hours or maybe a day or longer, look at the Taiwan's demonstration to oust the President out of his office, it took days and hundred thousands of protestors. As time goes by, the protestors suffer from fatigue, hunger and thirst and bad weather will have a dampening effect on the psychology of the protestors. The frustration escalates especially when the objective of the demonstration isn't achieved. 

Stage 4, this is the nightmare, not desirable but unavoidable, the group turns hysterical. There several reasons to this behaviour: Fatigue and provocation from anti -riot police or instigation from fellow protestors.  And the worst case scenario: Authorities ignored the agenda of the protest sending the wrong message to protestors.

The crowd starts to vent their anger, perhaps a little violent will cause the authority to rethink their decisions?  The demonstration turns violent, turns into a riot ......

a bloodbath

PART 2