A threat for long-running recession

With the Dow Jones now about 40 percent lower than its level a year ago, many Americans find themselves without jobs or without their homes. Facing such prospects, many people may suffer from hopelessness and despondency in the next few weeks.

The current economic downturn, which threatens to become a long-running recession, is not the normal kind. This one is based on a housing slump. According to the International Monetary Fund, economic recessions caused by slumps in the housing sector tend to be more long-drawn, and recovery takes much longer.

The initial reaction of people to this recession is depression, and the despair has begun.

Staff manning a suicide hot line in Virginia observed a 62 percent increase in the number of suicide-related calls in the July-August period this year compared to the same period in 2007. While not all of the rise can be attributed to the economy, the logs of calls show economic woes are very much a part.

Hot lines that help people cope with crisis have observed similar increases in calls from people worried about finances. The nation’s biggest operator of employee assistance programs, including mental health referrals, ComPsych, reported that calls for assistance due to stress arising from financial hardships rose 21 percent in July this year compared to July 2007. Another employee assistance program provider, ValueOptions, said calls of the same nature soared 89 percent.

A medical center in San Francisco noted that psychiatric admissions increased four times the usual rate in August. Patients who alluded to financial stress comprised 60 percent of total admissions.

The most extreme reaction was the case of a former financial advisor who killed his whole family of five, including his mother-in-law before shooting himself. His suicide note said he had no options left because his investments had been wiped out.

A psychiatrist says people often allow themselves to be trapped in the past, particularly in times of fear, uncertainty and stress. They tend to react strongly to financial difficulties, and spend their time comparing their current position to their status one or two years ago.

A recent American Psychological Association survey revealed that 80 percent of Americans point to the current economic downturn as a major source of stress. Almost 50 percent expressed fears about how to continue providing for the basic needs of those dependent on them.

Suicides are exceptional occurrences. More prevalent is a sense of despondency that quietly disrupts work behavior and disturbs personal relationships.

People may experience insomnia, be persistently sad or irritable, and suffer intestinal problems.

Safety Tips:

* Avoid blaming yourself. This is a situation not of your own making.

* Address your current situation with sobriety. It is useless to focus on the past.

* Avoid panic. Panic will lead to unwise decisions.

* Avoid isolating yourself. Talk about your situation with family and friends, but do not feed each other’s fears.