I highly recommend reading this series of posts by Dr. David Powlison. He confronts the current, popular understanding of psychology, and gives biblical perspective to our therapeutic times.
There are about 5 posts in all. . . I say, take some time and read all of them.
here is part 1
Part 2 and 3 can be found at the bottom of part 1.
And here is a clarification regarding some questions from readers.
Here are some new posts called "The therapeutic gospel"
(HT: Justin Taylor)