Anyone have any opinions on the economic consequences of all this? Panic / fear tends to create selling in the markets, and that's exactly whats happening around the world. http://cnnfn.cnn.com/2001/09/11/markets/markets_asia/ A 7% drop would be an unprecedented 700 point fall in the Dow. All it takes is one big event for people to stop spending and thus create a recession. Something like this could be all it takes. Hopefully, the markets won't open until things are a little more under control and the natural gut panic reaction is gone.
I thought I heard the markets are closed today (Wednesday). Is this true? I think that stock prices will crater...
Yeah, they are definitely closed through Wednesday. Hopefully they can get air transportation working again and create a little bit of a sense of calm.
I know this sounds completely incorrect, but there's this part of me that's saying I hope the market drops. It's irrational, but I half-think that if these madmen see that they've caused enough damage, maybe they'd stop.
haven, The flipside of that is that if terrorists know that these attacks are effective, it will encourage them to use them more often.
Then the question becomes: what do they want, really? If they just want to punish the US... then yes, the more pain that is inflicted, the more it may encourage future retribution. But if they wanted to alter US policy, then perhaps it's irrelevant how successful their attack was. I really can't see Bush or any US politician caving into demands. If anything, they've hurt their case. But if they're sick of us living in our "ivory tower," which seemed to be the sentiment expressed by some of those interviewed, then maybe if we look exposed, human, and struck by tragedy then they'll relent. I don't know. I can't fathom the mind of such a person. Maybe all of those suppositions are off basis. Told you I was going on feeling.
I heared that quite a few Japanese Investors who own shares in buildings around America are quickly pulling out. Can anyone confirm or deny this??
You can't quickly pull out of building ownership. The Japanese have been attempting to sell several properties they acquired in the '80s and early '90s, but those attempts have been going on before this terrorist act.
It seems trivial to discuss the markets at this time, but do not worry about a calamity on Wall Street. The market may drop, but it will probably just create a buying opportunity. If consumer confidence is damaged enough, a recession may very well be triggered. Again, a buying opportunity. If it occurs, it will probably be short-lived since it would have been artificially created.
While I know money shouldn't be on my mind at this time I'm thinking some serious dropping is gonna be going on. The problem is, everyone probably thinks well i'm not gonna panic and sell off but then they think of all the people that will and they get really scared so they sell too and then we're all screwed. But yes, b/c it is an artificial factor, i'm hoping for a bounce back. I told my dad to take my money out about a week ago (since I can't seem to get to my account on the web) b/c the markets would keep going down and now i'm really worried that's gonna happen. But I could be dealing with a lot worse problems right now so I'll consider myself blessed.
Okay so if the DOW and Nasdaq crash next Monday, I'm opening up an Ameritrade account and buying like crazy. Buy low, sell high.... WTF? Why are we thinking about the market at a time like this?
Anyone viewing what will transpire in the next couple weeks as a buying opportunity would be well advised to re-think. Markets have already been poised to fall without this catalyst. These events will only accelerate a bear market that was already likely. There is a reason why nearly every great investor from Buffett to Soros has been out of the markets for months. Individual investors would be wise to follow these masters rather than try to outsmart them
<B>WTF? Why are we thinking about the market at a time like this?</B> Because the market impacts the economy, which impacts peoples' lives. We may not have felt all the impact and results of this attack, and it may spread across the globe. If you'd prefer, we can just keep repeating over and over how we think we should bomb the hell out of all middle eastern countries so we feel better. If you don't want to discuss it, don't.
I think short-term it will fall. Anytime a war is possible people want cash because it is more convertible. Good news is if (when) a war happens it usually pumps the economy up a little. But I agree the market is secondary until the cleanup is taken care of and revenge is taken care of.
Capital Markets prices in the short-run are always going to be based on emotion and psychology. But the truth is that fundamentals of markets are based on risk and volatility, so this leaves the US in a weaker position in world markets because the risk has increased. Currency markets already showed the dollar falling significantly, because currency is not based on the gold standard, but on confidence of the backing party and their security. The specific effects of the individuals killed will affect the market as well. The main Morgan Stanley office, Goldman Sachs office along with many other firms had many analysts that no-doubt perished in this horrendous event. Most of the information is backed up and the individuals can be replaced, but the sanctity and security of the USA will never be the same.
Its NEVER about revenge! are you going to revenge by killing 20,000 terrorist? We need to attack and make a point that we are not going to accept this kind of behavior.
Why can't Bush, Greenspan, or any other leader come out and urge people not to panic? Tell them everything's going to be OK, and by panicing, we're showing the terrorists that they won. (forgive me, I know crap about how the economy works)
