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In a classic example of herd mentality, IndyMac customers line up to withdraw money from the failed bank even though they don't need to. Such actions can exacerbate the problem for everyone, behavioral economists say.
The Financial Lobe
Behavioral economists watching people herd in line at IndyMac -- or flush their portfolios of Fannie Mae and Freddie Mac stock -- sense a much deeper, even primal, response at play. The only way to say this is to just say it: People are acting like frogs. (By David Mcnew -- Getty Images)

Will Investors Flock Back to Financials?

Rally in long-maligned sector may not be sustainable because last week's uptick was artificial, caused by the actions of short sellers and federal government, experts warn.


The Color of Money

Consumers Raiding
The Retirement Stash

An increasing number of employees are raiding their retirement funds by taking out loans against their 401(k) accounts, a study finds. Strangled by debt and rising prices, workers turn to these plans as the only stash of cash they have.


Jane Bryant Quinn

Lawsuit Threatens Sarbanes-Oxley Act

A decision from a federal court might throw the Sarbanes-Oxley Act into limbo. The law, also known as SOX, is essential to the movement for accurate and honest corporate reports.


More News

HINDSIGHT:  Mortgage-Finance Flops (Post, July 20, 2008; Page F02)

MARKET BUZZ:  How Long Can Gold Shine? (Post, July 20, 2008; Page F02)

FORESIGHT:  More Anecdotes, Fewer Numbers (Post, July 20, 2008; Page F02)

Life in the Cute Lane:  To Curb Fuel Costs and Emissions, SUV Drivers Downshift to Stylish, Super-Compact Smart Car (Post, July 18, 2008; Page D01)

Cosmic Markdown: EPA Says Life Is Worth Less (Post, July 19, 2008; Page A01)

Freddie Mac Paves Way For Major Stock Sale:  Multibillion-Dollar Offering Would Help Balance Sheet (Post, July 19, 2008; Page D01)

Citigroup Posts $2.5B Loss, Besting Estimates (Post, July 19, 2008; Page D01)

D.C. Starbucks Closings (Post, July 18, 2008; Page D04)

Takeovers Captivate Ecuador:  Government Links Its Seizure of TV Stations to Corruption Case (Post, July 19, 2008; Page A08)

Digital TV Faces Language Barrier:  Many Hispanics Unprepared for Switch (Post, July 19, 2008; Page A01)

Stocks Close A Big Week With a Whimper:  Google Leads Tech Slide (Post, July 19, 2008; Page D01)

XM-Sirius Vote Hangs on New Conditions:  Adelstein Cites Pricing, Minority Programming (Post, July 19, 2008; Page D01)

Merrill Lynch Posts $4.65 Billion Loss:  Mortgage Crisis Continues to Take Toll (Post, July 18, 2008; Page D01)

Warming Is Major Threat To Humans, EPA Warns (Post, July 18, 2008; Page A01)

Transcript:  Pearlstein: The Economic Crisis (washingtonpost.com, July 18, 2008; 11:00 AM)

Freddie Mac to Sell Billions in Stock (Post, July 18, 2008; 4:35 PM)

New Stimulus Plan on Tap:  Senate Democrats to Present Proposal Next Week (Post, July 18, 2008; Page A04)

All Tomatoes Cleared of Salmonella Risk, Officials Say (Post, July 18, 2008; Page D01)

Capital One's Profit Plunges 40 Percent:  Credit Card Giant Cites Rise in Defaults (Post, July 18, 2008; Page D01)

Investigation of Iraq IG Ends With No Charges (Post, July 18, 2008; Page A09)

GM Learns Its Lesson and Perfects a Winner (Post, July 20, 2008; Page G01)

Congressman Seeks Ethics Probe of Fundraising:  Money to Be Used for Center in His Name (Post, July 18, 2008; Page A04)

Thursday, Noon ET:  Color of Money Live (washingtonpost.com, July 17, 2008; 12:00 PM)

Tracking Produce Proves Complex (Post, July 17, 2008; Page D01)

Consumer Prices Surge As Inflation Spreads:  Financial Shares Post Double-Digit Gains (Post, July 17, 2008; Page A01)

Slowing Economy Gives Way to Global Role Reversals (Post, July 17, 2008; Page D01)

Airlines Post Losses (Post, July 17, 2008; Page D02)

Latest From the Wire
Brazilian FM's Nazi reference rocks WTO talks
(AP, July 19, 2008; 9:06 PM)

Dream of gas tax holiday faltered over job losses
(AP, July 19, 2008; 1:26 PM)

Tomato growers: Salmonella scare damages industry
(AP, July 19, 2008; 11:44 AM)

Bush: Congress could take steps to ease gas prices
(AP, July 19, 2008; 11:08 AM)

Chinese broker tried in insider trading
(AP, July 19, 2008; 6:24 AM)
More Stories

Live Business Discussions
Transcript: Pearlstein: The Economic Crisis
(Steven Pearlstein, July 18, 2008; 11:00 AM)

The Root: Homewreckers: Black America and the Subprime Meltdown
(Kai Wright, July 17, 2008; 1:00 PM)

Transcript: Color of Money Live
(Michelle Singletary, July 17, 2008; 12:00 PM)

Thursday, July 17, 11 a.m. ET: Voices on Leadership: Stephen R. Covey
(Stephen R. Covey, July 17, 2008; 11:00 AM)

Transcript: How the Banking Crisis Affects Consumers
(Nancy Trejos, July 16, 2008; 12:00 PM)
More Stories

Post Personal Finance Headlines
MARKET BUZZ: How Long Can Gold Shine?
(Post, July 20, 2008; Page F02)

HINDSIGHT: Mortgage-Finance Flops
(Post, July 20, 2008; Page F02)

FORESIGHT: More Anecdotes, Fewer Numbers
(Post, July 20, 2008; Page F02)

Taming Costly Vet Bills
(Post, July 20, 2008; Page F03)

More Stories

Latest Tech News From The Post

The Future Is So Yesterday
(Post, July 20, 2008, Page M01)

Move to Digital TV Faces Language Barrier
(Post, July 19, 2008, Page A01)

XM-Sirius Vote Hangs on New Conditions
(Post, July 19, 2008, Page D01)

Stocks Close A Big Week With a Whimper
(Post, July 19, 2008, Page D01)

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