Depends on whether they accept/know the truth IMO.

Well according to Ojfoggin:



If so, then i think Denial is probably the best description i've seen so far.

The only way i could describe it is a form of self-justification (like purchase justification reflex). I agree that it's not really a psychological condition per se and more just a habit that may or may not have a nice, neat little word to sum it up.

Positive reinforcement?

Bump for this. I wish I could think of the example, but I'm sure I've heard it used in this context.

It's like when a stupid person ends every sentence with a rising inflection, because they have no confidence in what they're saying and they're looking for affirmation. You sometimes find a group of stupid people affirming stupid ideas amongst themselves because they don't want to appear stupid by disagreeing with what "everyone is saying". These groups could consist of 3 people at a bus stop, or an entire state the size of Kansas. Some mental illnesses have characteristics which are actually very common in some small towns. It's all about isolation and not understanding modern society.