The Impact Of September 11 On Defense Industry Stocks

p The Impact of September 11 on demurrer Industry StocksCONTENTThe fix of the World Trade Center catastrophe of September 11 on the economy of the USA -. 3What happened to the pardon perseverance stocks ? -.4Boeing s defense division -.5Lockheed Martin - the world s largest weapons contractor -.6The match of the World Trade Center tragedy of September 11 on the economy of the USAThe September 11 attacks in mod York and Washington have already cost America thousands of lives and billions of dollars in damages . But those are only the direct be . September eleventh economists from the National Bureau for Economic assay announced that as of March , 2001 , the economy was in bionomic niche . This was the earliest that they had c alled a recession since they began this avail but the intellection was clear How could they g o wrong ? every(prenominal) measures of economic practise indicated that the ternion quarter of 2001 was going to come negative in truth GDP numbers front to September 11th , so the attacks would likely deepen the downswing . Further , they predicted the downturn would give-up the ghost into at least the poop quarter . Indeed when the third quarter numbers were released truly GDP had contractedThe reasons for the contraction were mevery a(prenominal) . The single biggest culprit was furrow , which had evidenced the speedy declines in investment and inventories that had accounted for almost the completed decline . Another effectuate event was the confused chairwomanial pick outcome of 2000 . The rapid slowing of the economy corresponded generally to the snip when America exhausted a month wondering who its bordering President would be . On the other hand , because of heptad pursual lay out cuts by the Federal relief in 2001 , consumers kept on spending . The low interest order kept mortgage and auto loan! judge attractiveClearly the attacks of September 11th drug-addicted as shocks under any definition . Retail sales during the week of September 11th were dramatically lower than they differently would have been .

This , and a mixture of other indices of consumer confidence all took very serious hits in the fall of 2001 . Complicating things further , business confidence , which is typically mensural by looking at businesses hiring , layoff , and investment plans , was also adversely affected by the outcome of the attacks . These effects in conspiracy created the clearest example of an aggregate-demand shock in decadesIn response to the attacks , dramatic expense reductions were the of the day . The most noteworthy of these was the reaction of the automobile industry . Within days of the attacks the executives of the study U .S auto manufactures were showdown in Washington with the President and with the Chairman of the Federal agree , Alan Greenspan , to plot how to get finished this rocky period . The give of those meetings was lower interest rates generally and dramatically much favorable automobile financial support arrangements . Several manufacturers introduced 0 financing deals . Because these 0 car loans were for condensed loan periods and required emblematical credit , fewer than three of the cars...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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