September 11, 2001 Terrorist Attack/World economic effects

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< September 11, 2001 Terrorist Attack

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As a side effect, just about every news site on the Internet slowed down to unusability as everyone tried to find more information about the plane crashes.

Stock exchanges all over the world plummet; many of them--including the London Stock Exchange--are evacuated. The New York Stock exchanges remain closed until Monday. Gold and oil prices spike upwards.

Travel and entertainment stocks fall, while communications, pharmaceutical and military/defense stocks rise. Online travel agencies particularly suffer, as they cater to leisure travel.

The London Times reported on 18th September that investigations are under way into the unusually large numbers of shares in insurance companies and airlines sold off before the attack, in London, Italy, Germany, Japan, Switzerland, France and the US

U.S. gas prices briefly shot up. See Gasoline price gouging.

ScamBusters reported that some email pleas for relief funds for victims of the attacks were simply scams to procure credit card numbers from inexperienced web users. ScamBusters offered tips to help donors ensure their contributions went to the right places.

Tourism in New York City plummeted, causing massive losses in a sector which employed 280,000 people and generated $25 billion per year. In the week following the attack, hotel occupancy falls below 40 percent, and 3000 employees are laid off. Tourism and hotel occupancy also falls drastically across the nation.

Share prices of airlines and airplane manufacturers plummeted after the attacks. Midway Airlines, already on the brink of bankruptcy, shut down operations almost immediately afterwards. Other airlines are threatened with bankruptcy. Tens of thousands of layoffs were announced in the following week.

The New York City projected budget deficit for the 2003 fiscal year which begins July 2002 ballooned from $2-$2.5 billion to approximately $4 billion, though most direct expenses related to the rescue and recovery effort are to be covered by the expected $40 billion in federal aid. However, the related drop in tourism and Lower Manhattan tax revenue is not expected to be covered.

See also Closings and Cancellations.

Main page - Full Timeline
Casualties - Missing Persons - Survivors -- Give Blood -- Personal experiences -- Donations
Closings and Cancellations - Memorials and Services
Responsibility - World political effects - World economic effects - Airport security

See also: World Trade Center -- Pentagon -- New York City -- Washington, D.C. -- U.S. Department of Defense -- terrorism -- domestic terrorism -- Osama Bin Laden -- Taliban -- Afghanistan -- Democratic Front for the Liberation of Palestine -- Palestine -- West Bank -- Gaza Strip -- collective trauma -- September 11


External Links

TOURISM: Vacant Rooms, Empty Tables and Scared Tourists, New York Times, 9/19/2001
THE WEB SITES: Online Travel Agency Shares Post Losses for a Second Day, New York Times, 9/19/2001
THE BUDGET: Finances of New York City Staggered by the Emergency, New York Times, 10/3/2001

To be incorporated
Fulton Fish Market Unhappy in Its New Home, New York Times, 10/4/2001
Sales Drop and Spending Crawls as Uncertainty Grips Economy, New York Times, 9/30/2001
THE ECONOMY: Officials Seek to Bolster Investor Confidence, New York Times, 9/17/2001
THE TECHNOLOGISTS: A Test Like None Before for the Computer Wizards, New York Times, 9/17/2001
FINANCIAL STRUGGLE: Airlines, in Search of Relief, Warn of Bankruptcy, New York Times, 9/15/2001