Final answer:
According to Selye's General Adaptation Syndrome, Walter is likely in the stage of exhaustion due to the prolonged stressful events he has experienced, such as his business bankruptcy, marital issues, and onset of panic attacks.
Step-by-step explanation:
The question relates to Hans Selye's General Adaptation Syndrome (GAS), which describes how stress affects the body over time. There are three stages in the GAS model: alarm reaction, stage of resistance, and stage of exhaustion. Initially, the body responds to stress with the alarm reaction, which is an immediate response to the stressor. If the stress continues, the body then enters the stage of resistance, where it adapts and tries to cope with the stressor. However, persistent stress can lead to the stage of exhaustion, where the body's resources are depleted, leading to potential illness or even death.
Regarding Walter's situation, where "Two years ago, Walter's business went bankrupt. Two months ago, his wife left him. Two days ago, Walter began having panic attacks", Selye would say that Walter is most likely in the stage of exhaustion. This stage occurs after prolonged stress and is characterized by the body's decreased ability to cope with stress, leading to an increase in health risks.