The term depressive realism was coined to describe some surprising findings that seemed to show that depressed people had a more accurate and realistic perception of their own importance, reputation and abilities to influence events compared to non-depressed people.

This realism may be the logically correct reaction to a vast meaningless universe, or is it just that normal non-depressed people have a tendency to have positive illusions? There is evidence that depressed people make better judgements when analysing situations. Non-depressed people tend to fall for positive suggestions even when there is no basis for them. In this respect their views are skewed towards positive outcomes whereas depressed people seem to take a more logical approach without an inherent bias - sadder but wiser.

However, this view has been challenged by other research that shows that this may only be true in situations where the personal consequences for the individuals are slight. As the emotional charge of a situation increases the success rate for depressed people falls and that for those not depressed rises. If the flaw of the normal personality is to be over-optimistic then in depressed people it is to be over-pessimistic. If normal people delude themselves that they have some control in situations in which they do not, then the depressed feel they have little control even when in reality they do.

Seems that both extremes in this spectrum suffer from a delusion. Is there a middle way? Taylor and Brown (1988) argue that having positive illusions is adaptive and therefore healthy. Such a view can also be seen as gullible which I don't see as having any evolutionary benefits unless one is a sheep. In contrast, Knee and Zuckerman (1996) reject that definition of mental health and think that the most self-determined people are those that suffer few illusions. Such a non-defensive personality is guided towards growth and learning and with low interest in egotistical stances. The ideal, in this sense, is neither happy nor sad, just wiser.

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