Joo Rip Gwa Rhhee
Joined: 25 May 2003
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 Posted: Sat Aug 30, 2008 1:42 am Post subject: |
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| blade wrote: |
| Joo Rip Gwa Rhhee wrote: |
nevertheless the 9-11 attacks were a terrible blow to the US economy.
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The way I remember it was that the Enron scandal had a greater effect on the stock market than 9-11 did. Am I wrong? |
I would say so.
| Quote: |
Economic aftermath
September 12: Manhattan spreads a large smoke plume
September 12: Manhattan spreads a large smoke plume
The attacks had a significant economic impact on the United States and world markets. The New York Stock Exchange (NYSE), the American Stock Exchange, and NASDAQ did not open on September 11 and remained closed until September 17. When the stock markets reopened, the Dow Jones Industrial Average (�DJIA�) stock market index fell 684 points, or 7.1%, to 8921, its biggest-ever one-day point decline.[163] By the end of the week, the DJIA had fallen 1,369.7 points (14.3%), its largest one-week point drop in history.[164] U.S. stocks lost $1.4 trillion in value for the week.[164] This is equivalent to $1.7 trillion in present day terms.[165] In New York City, there were approximately 430,000 lost job months and $2.8 billion in lost wages, which occurred in the three months following the 9/11 attacks. The economic effects were mainly focused on the city's export economy sectors.[166] The GDP for New York City was estimated to have declined by $27.3 billion for the last three months of 2001 and all of 2002. The Federal government provided $11.2 billion in immediate assistance to the Government of New York City in September 2001, and $10.5 billion in early 2002 for economic development and infrastructure needs.[167]
The 9/11 attacks also had great impact on small businesses in Lower Manhattan, located near the World Trade Center. Approximately 18,000 small businesses were destroyed or displaced after the attacks. The Small Business Administration provided loans as assistance, while Community Development Block Grants and Economic Injury Disaster Loans were other ways that the Federal Government provided assistance to small business effected by the 9/11 attacks.[167] 31.9 million square feet of Lower Manhattan office space was either damaged or destroyed.[168] Many questioned whether these lost jobs would ever be restored, and whether the damaged tax base could ever recover.[169] Economic studies of the effects of 9/11 have confirmed that the impact of the attacks on the Manhattan office market as well as on office employment was more limited than initially expected because of the strong need for face-to-face interaction in the financial services industry.[170][171]
North American air space was closed for several days after the attacks and air travel decreased significantly upon its reopening. The attacks led to nearly a 20% cutback in air travel capacity, and severely exacerbated financial problems in the struggling U.S. airline industry.[172] |
http://en.wikipedia.org/wiki/September_11,_2001_attacks |
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