We are designed to be trusting animals, you and me.
Paul Zak, professor of economics at Claremont University, and researcher in the emerging field of "neuroeconomics," discusses the way human brains work when we interact with one another in a APM Speaking of Faith broadcast from July, 9, 2009. Here's the link: http://speakingoffaith.publicradio.org/programs/2009/neuroeconomics
When we are hurt by someone untrustworthy, another hormone, testosterone, is released in the brain and we universally demand revenge or justice. (He mentions the Enron failure and investment manager Bernie Madoff as key examples of this response.)
So in the large scheme of economic life, we are primed to be trusting, emotionally driven people in the market place. My takeaway? When our trust returns more fully, the economy should begin to restore itself.
This research has me thinking about how amazing it is that we are naturally designed to trust one another, and what to think about those 2-5% of human beings who lack this capacity. It explains to me something of what happens to those we think of as psychopaths, those who lack the capacity for human empathy. Perhaps one day, we will be able to run blood tests and brain scans and know more about how to treat the most violent among us. But that is a post for another day.