Barry Ritholtz at The Big Picture has put together a very engaging post on the psychology of the business cycle (HT to Chartporn). It contains a number of intriguing charts that make a case on how the psychological aspects of human nature feed the economic cycle and vice-versa.
Take a look and give it a read. Let me know what you think. But also share how you think you might use this in class, or if you would use this in class. While it probably doesn't apply to what you "have to teach" either for an exam or to meet certain benchmarks, I think its ability to help students understand is very good, and therefore it shouldn't be dismissed.