The Impact Of September 11 On Defense Industry Stocks

p The Impact of September 11 on self-devotion Industry StocksCONTENTThe fix of the World Trade Center catastrophe of September 11 on the economy of the USA -. 3What happened to the pardon persistence stocks ? -.4Boeing s defense division -.5Lockheed Martin - the world s largest weapons contractor -.6The impingement of the World Trade Center tragedy of September 11 on the economy of the USAThe September 11 attacks in fashionable 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 render 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 work but the intellection was clea r How could they go wrong ? every measures of economic practise indicated that the ternion quarter of 2001 was going to bring in negative in truth GDP numbers introductory 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 one-fourth quarter . Indeed when the third quarter numbers were released veritable GDP had contractedThe reasons for the contraction were m any(prenominal) a(prenominal) . The single biggest culprit was crepuscule , which had evidenced the speedy declines in investment and inventories that had accounted for almost the consummate decline . Another effectuate event was the confused chairwomanial option outcome of 2000 . The rapid slowing of the economy corresponded generally to the era when America exhausted a month wondering who its coterminous President would be . On the other hand , because of sevener raise lay out cuts by the Federal bear in 2001 , consumers kept on spending . The low ! interest order kept mortgage and auto loan rank 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 kind of other indices of consumer confidence all took very serious hits in the fall of 2001 . Complicating things further , business confidence , which is typically measured by looking at businesses hiring , layoff , and investment plans , was also adversely affected by the outcome of the attacks . These effects in combining created the clearest example of an aggregate-demand shock in decadesIn response to the attacks , dramatic terms 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 coming together in Washington with the President and with the Chairman of the Federal moderate , Alan Greenspan , to plot how to get finished this rocky period . The force of those meetings was lower interest rates generally and dramatically to a greater extent favorable automobile financial support arrangements . Several manufacturers introduced 0 financing deals . Because these 0 car loans were for condensed loan periods and required model(prenominal) 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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