It is discussed how psychology can shed light on the recent global financial crisis. Financial  behavior on an individual and collective level, respectively, is analyzed. On the individual level four modes of cognitive function are highlighted: Adaptive intuitive, maladaptive intuitive, adaptive analytic, and maladaptive analytic. The development of the crisis on a collective level is analyzed in terms of the concepts of shared reality, group think, destruction of trust, and restoring trust by verbal communication. A case study is reported showing biases in forecasts of economic growth. The report concludes that future crises could be counteracted by stimulating a positive spiral in which people develop their own thoughts, feelings and behavior by influencing and being influenced by the economic environment. This goal cannot be attained by regulation alone. To attain this end, a number of policy measures are recommended.