Could Terrorist Attack Tip The U.S. Economy Into Recession?
By Paul Shread September 12, 2001 In the wake of the worst terrorist attack in U.S. history, economists are debating whether the resulting shock could be enough to tip the fragile U.S. economy into recession. The U.S. economy was already weak before yesterday’s massive terrorist attack on the World Trade Center and the pentagon. The resulting economic shock – massive property destruction, loss of business, higher oil and fuel prices, and an expected slide in financial markets – could be enough to turn U.S. GDP negative in the current quarter. There is also speculation that the disaster could further dampen consumer confidence – the one element holding up the U.S. economy – leading to a deeper recession. For the U.S. financial system and community, the extent of the losses could potentially be devastating. The loss of infrastructure was massive, and trading and clearing operations could be disrupted for some time. But that infrastructure can be rebuilt, and many firms have backup center
