Newspaper article THE JOURNAL RECORD

Terrorism Strikes Home Soul-Searching, Talk of War Spur Economic Uncertainties

Newspaper article THE JOURNAL RECORD

Terrorism Strikes Home Soul-Searching, Talk of War Spur Economic Uncertainties

Article excerpt

With the national economy already skirting recession, Tuesday's terrorist attacks -- which caused the New York Stock Exchange to close for the day and threatened to disrupt the market for weeks -- are a major threat to economic recovery and stability, officials said.

"I think it has the potential to be extremely disruptive," said Dr. Sue Lynn Sasser, an assistant professor of economics at the University of Central Oklahoma. "I mean, New York is not just the center of finance for the United States, it's really the center of finance for the world."

"I think the real key is that the economy was teetering anyway and there are some signs that the bottom is occurring -- or was occurring," said Dr. Robert Dauffenbach, director of the Center for Economic and Management Research at the University of Oklahoma. "I suspect that this is going to lead to a lot of soul searching and a lot less attention possibly to financial markets right now -- some kind of larger issues will be examined. There are a lot of people talking about going to war over this. And that creates uncertainty and markets don't like uncertainty."

Tuesday's terrorist attacks on the World Trade Center not only destroyed the New York City landmark but also literally turned the world's major financial center to rubble. Several major institutions, including Goldman Sachs, were headquartered in the area of the World Trade Center, sending additional ripples throughout the financial world.

However, Sasser noted that the nation's financial infrastructure should remain intact.

"The financial flow of the United States can continue because the Federal Reserve is underground, basically -- all of its technology," she said, noting the most finance-related centers have redundant systems to avoid catastrophe. But the physical damage to the financial districts in New York may be substantial enough to disrupt the markets for an undetermined amount of time, she added.

However, Dr. David May, a professor of economics at Oklahoma City University, said that the country's economic system wouldn't be disabled even though one of its major nerve centers has been injured.

"The fact that these financial institutions are in New York City may delay a recovery, but I don't think it's going to cause any significant impact, certainly not long term, in the stock market," he said. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.