In 1928, American sociologist William Isaac Thomas theorized, "If men define situations as real, they are real in their consequences." In other words, a consequence will come to fruition based on how one interprets the situation. This concept came to life only a few years later, with the fall of the banking system during the Great Depression.

Between 1931-1933, those banks that were on strong financial footing were driven to insolvency by bank runs. Often, a false rumor started that a bank was insolvent (incapable of covering its deposits), a panic ensued, and depositors wanted to withdraw their money all at once before the bank’s cash ran out. When the bank could not cover all the withdrawals, it actually did become insolvent. Thus, an originally false belief led to its own fulfillment.

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