I argue that the changing economic conditions in the contemporary world have caused a shift in religious and cultural values among American youth. This shift in cultural and religious values and practices is interpreted in this essay as an experience of symbolic loss, or a loss of socially shared historic ideals and symbols (Homans in Childhood and selfhood: essays on tradition, religion, and modernity in the psychology of Erik H. Erikson. Bucknell University Press, Lewisburg, pp 189–228, 2008). I argue that the symbolic loss among American youth can most clearly be seen in the contemporary horror film genre in America. I assess the popularity of this genre, its value structure and the psychosocial consequences of the symbolic losses experienced by American youth as witnessed in this film genre. I suggest two ways in which adolescents and adults can work to re-create cultural and religious meanings that both foster courage and serenity in the face of the profound despair that accompanies the rage and paranoia in the contemporary horror film genre.