InTransit: Silver XAG/USD Fibonacci Levels 01.13.2012

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Normalcy bias

From Wikipedia, the free encyclopedia

The normalcy bias, or normality bias, refers to a mental

state people enter when facing a disaster. It causes people to

underestimate both the possibility of a disaster occurring and

its possible effects. This often results in situations where

people fail to adequately prepare for a disaster, and on a

larger scale, the failure of the government to include the

populace in its disaster preparations. The assumption that is

made in the case of the normalcy bias is that since a disaster

never has occurred then it never will occur. It also results in

the inability of people to cope with a disaster once it occurs.

People with a normalcy bias have difficulties reacting to

something they have not experienced before. People also tend

to interpret warnings in the most optimistic way possible,

seizing on any ambiguities to infer a less serious situation.

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