World economic effects


The September 11, 2001 Terrorist Attack had immediate and far-ranging
economic effects.

Numerous investment firms housed in the World Trade Center lost hundreds of
employees, including Cantor Fitzgerald and Marsh & McLennan.

Stock exchanges all over the world plummeted; many of them--including the
London Stock Exchange--were evacuated. The New York Stock exchanges remained
closed until the following Monday. Gold and oil prices spiked upwards. See
also Stock market downturn of 2002.

Travel and entertainment stocks fell, while communications, pharmaceutical
and military/defense stocks rose. Online travel agencies particularly
suffered, as they cater to leisure travel.

The 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 were 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.