PANIC SETS IN

It is easy to see the way that people think by their actions. The Lord Jesus made this abundantly clear in Matthew 7:20, "Wherefore by their fruits ye shall know them." He was referring to false prophets. He said the distinguishing factor in false prophet identification is their fruits. This same example can be used for every instance, whether good or bad. Thayer’s Greek English Lexicon renders fruits, "metaphorically that which originates or comes from something; an effect, result. Work, act, deed." Actions are therefore a result of prior thinking or mindlessness.

When people have no future and no hope, they will panic. Panic is the result of no hope. Noah Webster’s 1828 Dictionary defines panic as, "A sudden fright; particularly, a sudden fright without real cause, or terror inspired by a trifling cause or misapprehension of danger." Panic can take place in the financial realm, as well as in other areas. When someone lacks foresight, panic will be the end result.

A good example of this situation occurred recently with the hurricane named Ike that hit the coast of Texas. There are a lot of refineries in that area. These refineries had to be shut down because of the hurricane. This will of course cause a disruption of the supply of gasoline in the short run. What was interesting was to watch people’s reaction to this situation. It was wholesale panic.

Rumors began to spread with stations supposedly running out of gas and the price of gas was going to exceed $5 a gallon. People were all buzzing about the gas situation. The result was predictable, long lines at the gas stations. These people panicked as if there was no tomorrow coming. Instead of doing any verifying of these reports, they just accepted someone’s word as truth and acted on these misapprehensions.

The next morning, gas had risen in my area about $.35 a gallon and you could get as much as you wanted. In this situation, having to pay more for gas is not the issue. The price will shortly come down to its previous level. The important thing is the ability to get it. Some people thought that the oil companies were gouging them. It is obvious that they do not understand the law of supply and demand. They can only think in the immediate moment. They lack the capability of seeing the final result of this hurricane. Eventually, things will get back to normal. This is a short run phenomenon.

This panic made those who waited in the long lines look foolish. The lower the price of gas was at a station, the longer the line was. Walmart was selling their gas $.20 below others and the lines were extremely long. What were these people thinking? So they saved $.20 a gallon. The frustration of having to sit in a car for a long period of time made them look ridiculous. The next time that rumors begin to fly, those possessing foresight will think through the situation before acting. The others will predictably panic.