Those involved in the news media, along with CEOs and the everyday average business worker, experienced the pain of losing loved ones, not to mention the business disruptions that took place. In the immediate aftermath, most people tried to get through this tragedy by restoring a sense of normalcy as soon as possible. The purpose of this Essay is to examine the effects of the 9/11 attacks on business confidence and financial markets. This paper will build on existing studies by other experts who have previously studied these issues. The 9/11 attacks affected the financial markets and business confidence on a broad range of levels that were surprising to say the least. In terms of stocks and bonds, we must consider what occured at the New York Stock Exchange (NYSE). There were immediate electronic interruptions, not to mention the direct threat to infrastructure. Both of these issues were of immense concern to the New York financial and trading community. Even though the 9/11 attacks were horrific enough in themselves, the physical impact of the attacks is not the subject of this paper. Instead, this paper will focus on the impact of the 9/11 attacks on the foreign exchange and derivative markets, business confidence, and the effects of monetary policy. Additionally, the focus will also be on the responses to the shockwaves, if any, that rippled the business community many years after the event. INTRODUCTION One cannot differentiate financial markets from the economy. Safety issues along with the fear of future similar terrorist attacks occurring again on American soil set the stage for increased security concerns. More than this, business management teams as well as workers and investors across the country had security concerns that went way beyond infrastructure. Can electronic, software, and hardware disruptions result in unparalleled losses? It can be said that the real impact of the 9/11 attacks on the financial world may have been the immediate disruption of the New York exchange markets, loss of communications, and the horrific loss of life, all of which represented a big blow to the supply-side values of the financial and business world. As it has only been ten short years after the 9/11 attacks, it is perhaps still too early and in some cases too painful to conduct a comprehensive investigation of what the consequences of those shocking events were. This would best be done with an examination of the full range of financial markets. The issue is still relatively sensitive because of the types of questions and accusations surrounding the beneficiaries of certain trading efforts in the stock exchanges. These parties are accused of placing winning put trades and options on airline stocks shortly before the tragic attacks. It would seem as though some investors had foreknowledge that particular stock of certain airlines would dramatically plummet on that fateful day. However, for the subject of this paper, we will flesh out a sensible recounting of the effects of monetary policy responses to the shock of 9/11. This will rely heavily on Congressional Research Reports and information derived from the Federal Reserve. The financial markets and the effects of monetary policy responses to the horror of the 9/11 terrorist attacks in New York had varying, if not
First and Last Name Professor’s Full Name Subject Name 5 August 2011 The Effects of the 9/11 Attacks on Business Confidence and Financial Markets EXECUTIVE SUMMARY The attacks that occurred on September 11, 2001 sent shockwaves around the world. This catastrophic event that caused great emotional devastation and the mass loss of life was something that Americans had never witnessed firsthand before…
This has angered many Islamic groups and nations but the strategic energy interests of the USA have led to it ignoring these sentiments. The attacks by the al Qaeda are believed to be hooked to the belief by the group that predominantly Christian countries like the USA deny them deserving power, prestige and leading role in world economy and politics.
Everyone woke up on that day with great expectations, hoping that this would be just another day in their busy lives, probably better. Some citizens went to their offices as early as they could, some to their businesses, others to school while others drove to the airports to catch their flights without knowing that their fate and destiny had already been decided by a group of self-centered notorious criminals, that is the al-Qaeda terrorist network.
Such occurrences may be human caused and social caused evils, while others like earthquakes are natural occurrences. Some people based on their teachings, be it Christianity, Islam or Buddhism believe that some events happen for a reason such as punishment for evil deeds or to enlighten them in case of such events in future.
The end of the cold war remains one of the biggest forces in the history of policy making in the world over. This was before the terror attacks in the USA in the infamous 9/11which also plays a key role currently in policy making affecting global politics all on a global scale.
This paper shall attempt to prove that the 9/11 attacks were an act of terror and by using the damage that it caused on multiple levels, shall attempt to establish that the American people did not by any means deserve to be damaged to such an extent. By doing so, this paper shall attempt to criticize the Falwell standpoint.
However we may choose to view it in retrospective, when they happened the 9/11 attacks were definitely both a surprise and profound shock to most American people. Prior to that fateful day in September of 2001, the American people did not have experience of terrorism from close quarters, except for the Oklahoma incident and relatively minor World Trade Center incident of 1993, and one or two major prevented attacks.
The world stands united against these notorious and terrorist forces, and have taken strong military and political actions against these militants. The terrorism has severely affected the social, cultural and religious harmony of the world. The tide of terrorist attacks has jolted the bond of trust and mutual respect between the ethnic and pluralistic society.
One, at around "8:46 hours Eastern Time", the suicide hijackers crashed the "American Airlines Flight 11" into the world Business Center's North Tower; the tower collapsed and crumbled into pieces (National Commission on Terrorist Attacks, chapter 5). Minutes later, a similar attack - involving the "United Airlines Flight 175" - occurred where the plane was crushed into the "Southern tower" of the centre; the tower also collapsed (National Commission on Terrorist Attacks, chapter 5).
This essay aims to focus only on the major effects of the 9/11 tragedy on the US economy.
At the time of the 9/11 attack, the US economy was softening and the possibility of a recession loomed (Makinen, 6). Contrary to other reports, the 9/11 events