14 DAY TRIAL // The leader of the UK liberal democrats, Nick Clegg, warned that people suffering from mental distress are very likely to plunge into despair and a deep state of stress if the economy of the country plunges into a recession, especially those who have large loans commissioned from commercial banks. Clegg pointed out that these people are more predisposed than other to panic and create turmoil in the financial system by trying to offset their expenses by creating more bank debts.
“I'm talking about an epidemic of mental distress, this will be the hidden tragedy of the recession. If you've been mentally unwell before, or are vulnerable to mental distress, you're going to be right back in the thick of it. And even if mental illness is completely new to you, the chances of you developing problems with stress, depression or anxiety are extremely high," the official recently stated at Sheffield University, during a conference on mental health.
He also advocated the expansion of a banking system that allows people to place virtual “notes” on their credit cards, warning bankers not to grant them any more loans during turmoil periods, so as to avoid getting into more trouble. "Banks should put procedures in place to help customers who have disclosed their mental health problems and missed payments.”
Mentally ill persons are more likely to develop maniac depressions and phobias in regards to the economic state than others, which can cause them to start spending a lot more money than they would otherwise do, so as to avoid getting deprived of basic sustenance and commodities. That's why Clegg also says that banks could put in place a system that would allow loan officials to track down unusual spending in people with declared mental conditions. This could lead to the bank turning down any further loan request, and avoid those persons getting into even more debt.
This is the first time that a European official advocates preemptive financial measures, aimed at reducing the impact that the global financial crisis could have on a specific population group, namely one that can't fend for itself.