First, we thought that the main reason why banks fail is that depositors panic, not that the main reason depositors panic is that banks are in danger of failing.

When the problems with the Reinhart Rogoff analysis came to light, the critics were aghast.

But panic panic leaders fear that they will be unable to stop their people from panicking is both common and harmful.

COPENHAGEN A sense of panic is setting in among many campaigners for drastic cuts in global carbon emissions.

Indeed, greater competitive pressure may increase the fragility of banks balance sheets and make investors more prone to panics.

Because the moment that people are alone, even for a few seconds, they become anxious, they panic, they fidget, they reach for a device.

Blogger Mohamed Beshir shares a tweet by a presenter at the Egyptian Television named Mohammed Saber, who is celebrating the murder of the Shia and calling for more deaths.

Soon, the PLA Navy s newly built aircraft carrier will be a common sight more than sufficient to scare China s neighbors.

Then, beginning on November 30, 2011, the exchange rate approached the bottom of the trading band for seven days, causing panic in the market.

As a result, Merkel s reforms have increased the angst of euro zone central bankers that the window of opportunity for future rate hikes might be closing.

Indeed, Iran s economy is now firmly in the grip of a war panic. When a national currency loses 50 of its value in a matter of weeks, economic collapse is at hand.

I was horrified when I received the tragic news of the overwhelming disaster, and I am extremely shocked by the scale of casualties, particularly the tremendous loss of life in Pakistan.

Like the view that running away from lions provokes them to eat you, there is a grain of truth in the view that banks fail because depositors panic.

4. Don t obsess over accusations of fear mongering. Nothing officials say is likely to cause panic, but they may be accused of causing panic no matter what they say.

There is a trade off between competition and stability. Indeed, greater competitive pressure may increase the fragility of banks balance sheets and make investors more prone to panics.

This would protect the weakest economies from destructive, panic fueled movements in financial markets, which, in theory, can hit any member country even those that are strongest today.

When the problems with the Reinhart Rogoff analysis came to light, the critics were aghast. The authors had inadvertently omitted data, used a questionable weighting scheme, and employed an erroneous observation on GDP growth.

When Germany sneezes, Europe catches a cold. As a result, Merkel s reforms have increased the angst of euro zone central bankers that the window of opportunity for future rate hikes might be closing.

But insufficient and sometimes counterproductive actions, coupled with panic and overreaction in financial markets, have brought some countries, such as Spain, which is a fundamentally solvent and strong economy, to the edge of the precipice, and with it the whole eurozone.

To overcome this fundamental design flaw, government debts must be pooled. This would protect the weakest economies from destructive, panic fueled movements in financial markets, which, in theory, can hit any member country even those that are strongest today.