By Paul Sullivan -- Commentary by Richard B. Wagner, CFP®

Published: February 6, 2009

During the boom years, money in America became many things it was never meant to be. It was status. It was identity. It was a magnet for love and friendship. What it rarely was is what it is: a means of exchange.

Now that a huge chunk of that wealth has evaporated and sources for its return have dried up, people are reeling. If the salary caps proposed this week by President Obama are adopted for companies receiving government aid, formerly high-earning executives are going to have an even harder time making it back. The net result is a psychological crisis over wealth and self-image.

To read the complete article, click here.

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Though the writer continues the common confusion of "wealth" and "money," he does a good job of pointing out the psychological issues that manifest during down markets and unanticipated losses. Some suffer from reduced self-esteem. Others have to come to grips with personal poverty and the indignities of asking family for help. Most importantly, the article underscores that money is intimate with huge psychological ramifications.

Dick Wagner

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