Project Essay

1453 WordsMay 29, 20126 Pages
September 11 attacks Economic, Financial and Policy Consequences PetreAlina PopescuSimona ASE,COMERCE First Year,312 STRUCTURE Foreign Affairs Some of the major effects: * A push toward recession * Growing risk aversion * Mixed impact on business investment * The micro-economic level * Insurance liability * Spike in defense spending * Manhattan reconstruction * Fixed-income markets * The dollar * Policy consequences The USA & UE USA in present Foreign Affairs The United States is the victim of the largest assault on one of its states in American history. Hawaii was not a state, but only a territory, when the Japanese navy attacked Pearl Harbor. Like December 7, 1941, this date, the eleventh of September, sixty years later, will also live in infamy. The terrorist attack will have far-reaching geopolitical consequences. It will also have a significant impact on the US economy, the financial markets, and the world economic outlook. Some of the major effects A push toward recession The attack comes at a time when the US economy has been only barely averting a recession, and the US stock market has been shaky. It will have a crushing impact on consumer confidence. Retail sales will be badly hurt in the short run. In this connection, it is instructive to look back to past tragedies: the Oklahoma City bombing, the original World Trade Center bombing in 1993, and the assassination of President Kennedy in 1963. In each case, there was a short, sharp contraction in either overall consumption or in purchases of autos

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