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March 29, 20260 citationsOpen Access

The Economic Babel: The Crisis Begins at the Moment of Success

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DSDimitris Seferiadis

Key Points

  • This article examines how economic crises originate not at the point of failure, but from unchecked success and collective perceptions.
  • Analyzes the transformation of certainty in economic success.
  • Explores the psychological dimensions of market behavior.
  • Investigates the impact of collective psyche on economic systems.
  • Economic crises begin before visible collapse, rooted in psychic transformations.
  • Collective behaviors reflect shared psychological states, causing uniformity in responses.
  • Information overload can coexist with a lack of shared understanding in the market.

Abstract

The article “The Economic Babel: The Crisis Begins at the Moment of Success” argues that economic crises do not begin when collapse becomes visible, but much earlier, at the precise moment when success ceases to be regulated in a healthy way and turns into omnipotent certainty. The text shows that markets are not destabilized only by distorted incentives, insufficient information, or excessive risk-taking, but also by a transformation in the psychic and collective relation to reality itself. One side of the self recognizes danger, while another, unconscious side pushes toward the certainty that limits have been overcome and that loss can be avoided. From this shift, omnipotence emerges. The article further argues that once a powerful experience of total control becomes established, even the smallest event that contradicts this certainty is experienced as terrifying frustration and as a rupture of cohesion. At that point, the psyche begins to function in borderline and primary terms: it shifts instantaneously from the absolutely good to the absolutely bad, from perfection to catastrophe. This logic does not remain individual. Through projective identification, psychic states are unconsciously transmitted across the collective field, so that large segments of the population, institutions, and markets begin to respond in the same absolute way. At this stage, the Babel phenomenon emerges: an excess of information, intensified communication, and proliferating analyses coexist with the collapse of shared understanding. Crisis, therefore, is not only an economic event; it is also a collective psychic dysregulation that has already begun before it becomes visible. Its prevention requires not only technical observation of markets, but also a deeper understanding of the unconscious dimensions that seek certainty, control, and the denial of limits.

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Cite This Study

Dimitris Seferiadis (2026) studied this question.

synapsesocial.com/papers/69c8c3cede0f0f753b39ed43https://doi.org/10.5281/zenodo.19255561
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1The Economic Babel II: How Markets Lose the Capacity to Think2026
  2. 2ON THE VERGE OF A NEW SYSTEMIC CRISIS – HOW DID WE GET HERE?2024
  3. 3Market Behavior: The Structural Drivers of Bubbles and Panics2026
  4. 4Ideals vs Action: An Insurmountable Paradox?2024
  5. 5The Black Iceberg: A Diagnostic Framework for Epistemic Collapse and Moral Desynchronization (Vol. 15)2026