Indeed, it was the worst-ever Dow performance in terms of points and the fifth-worst by percentage. Worried investors slashed the value of the Nasdaq composite by about 16%. By the end of that week, the S&P 500 began trading solidly below 1,000. A wild, seesaw on the following Friday session, in which the Dow traded in a 376-point range, ended with the Dow down 140 points and the Nasdaq off nearly 48 points. Of course, airlines stocks suffered the most, with the sector off some 37% overall.
A favorable predictor for stocks is lower interest rates. The aggressive action by the Federal Reserve to lower rates is very positive for stocks. The terrorist attacks have increased the "risk premium,"" or extra return, that stockholders demand above the return on safe government bonds. An increase in the risk premium occurs either by increasing expected future stock returns by depressing today's stock prices, or by lowering yields on government bonds "or some combination. By lowering short-term rates, the Fed provides for a higher risk premium without forcing all the adjustment onto stock prices. In sum, the week after the attack, one harrowing week of stock trading took us back three years, to the Asian-crisis days of 1998. By loyalty and Patriotism will lead us into the future.
Americans came together helping financially, emotionally, and spiritually. The Federal Government did their part by injecting many billions of dollars of liquidity into the banking system. Congress did its part by approving a $40 billion funding package for rebuilding. Many investors held claims to not sell stock. Federal and State disaster assistance top out at $657 million dollars. Many companies announced new or expanded stock-buyback plans and began acting on them. To the countries dismay, the slide still continued. .
The first bit of hope came when General Electric's CEO, Jeffrey Immelt confirmed that the conglomerate would hit its double-digit earnings-growth targets.
Pakistan's economic inheritance. 2) Economy i. What is Economy 3) Devaluation i. ... Economy. What is economy? ... Wars and hostility is a strain on the economy causing depletions of important resources to be spent on defense instead of on the deserving population. ...
The United States Economy is being negatively impacted by the prospect of war with Iraq. Many times uncertainty about the future has an even more negative effect on the economy than being involved in the actual war. This seems to be the case with the United States as we continue to anticipate a change in our country's status. ... When considering the possible scenarios regarding a war with Iraq which include a quick war that does not impact oil prices, a long, drawn-out war with sends oil prices way up, and doing nothing but talking about the possibility of a war, the most negative impac...
The South's economy was devastated, and the northern ideals flourished. ... With no more slaves to work the southern plantation crops, their economy was devastated. ... Northern industry expanded during the war and continued to grow stabling the economy. ... With the end of the Civil War, the northern ideals flourished, and the South's economy was devastated. ... This would have totally changed our machine dependent life of today. ...
Are Wars Good For The Economy? ... First it explains why people think that war is good for the economy. ... So in the short run the war will hurt the economy of the United States and their allies. ... The economy of the United States could improve in the long run due to the war for a couple of reasons: 1) The Oil in Iraq, which even if that is not the sole purpose we went to war, the US oil companies will have better access to oil making the price go down stimulating the economy. 2) Stability and Economic Growth in the Middle East which will mean that the United States can spend less mon...
Throughout the history of our world, political theories have governed nations great and small; regulating the teeming masses. ... Because of this, Iraq was able to control OPEC and had control of the world's economy. ... In the 1980's, Iraq's main foreign policy was the war in Iran. ... This war was a burden on Iraq politically, economically, and socially. ... Another goal of the Baath was to socialize the economy. ...
A major event in this war was the Tet Offensive, which profoundly affected American history by impacting our politics, economy, military, and society. ... It affected the American economy, boosting personal prosperity with new jobs but greatly increasing the national debt, due mainly to the vast amounts of money spent on the war effort after the Tet Offensive. ... In 1964, he began an extensive escalation of our war efforts. ... The impact of the war on the economy of the United States was extensive after the Tet offensive. 50 billion dollars a year was spent on the war in the years followi...
The War in Iraq, the faltering economy, and terrorism have made people very tense about what direction our country is heading. In particular the war in Iraq brought out many different opinions and many of them were against the action our government took. ... Whether its war, public school funding, or the economy people speaking on an issue exemplifies what patriotism truly is. ... The war in Iraq sparked such a debate. ... In the end, our government and the American people decided that war was the best option. ...
How should we get our point across? How many lives need to be lost to make our point? And finally, what is our point? Humans must be taught that war is not the solution to all our problems. ... The Versailles treaty let all the World War I involved countries to get back to rebuilding their economies and governments. ...
The Primary Cause of the American Civil War: Economics More than one million people dead and a nation torn apart. "A fight against slavery" it was said, but was that the main reason the war was fought? Or is that just what our nation says to glorify our past? There were many factors that contributed to the United States" Civil War, but the main reason for the war can be attributed to the economic differences between the Northern and Southern parts of the United States. ... The north and south had very different economies. ...
