The true implications of the terrorist attack in New York on the 11th September 2001 are only just beginning to emerge.
Firstly, there is the direct cost of the damage to people, aircraft and buildings.
Tentative estimates of $100bn are already being talked about. This would include the cost of four aircraft, both towers of the WTC, all the contents of the offices. In addition one has to include the life insurance costs of all [5,000] people who have died, the majority being American citizens.
Up to 650 companies may also
Firstly, there is the direct cost of the damage to people, aircraft and buildings.
Tentative estimates of $100bn are already being talked about. This would include the cost of four aircraft, both towers of the WTC, all the contents of the offices. In addition one has to include the life insurance costs of all [5,000] people who have died, the majority being American citizens.
Up to 650 companies may also
be out of business for 6 months due to the loss of their physical offices and key personnel.
Secondly, there is a major indirect component to the losses. Business interruption is a major issue for many of the major companies, including airlines, insurance companies, brokers, traders and investment banks.
There could be serious (irretrievable) loss of reputation that may lead to further company collapses.
Thirdly, the markets have been seriously hit by investor panic. The Dow dropped by 7% (value of $350bn) on its first day of
Secondly, there is a major indirect component to the losses. Business interruption is a major issue for many of the major companies, including airlines, insurance companies, brokers, traders and investment banks.
There could be serious (irretrievable) loss of reputation that may lead to further company collapses.
Thirdly, the markets have been seriously hit by investor panic. The Dow dropped by 7% (value of $350bn) on its first day of
trading after the attack, mirrored to a lesser extent by markets in Hong Kong and the Far East.
Ironically the London market (FTSE) stabilised and even rose on the day. However, there is a general downward trend that will take the US and the world into global recession. If ever there was a good time to strike- it was this week!
It is also speculated that the terrorists may even have profited from the downward fall of specific shares in the insurance, airline and armaments sectors through the activity known as "selling-short".
Ironically the London market (FTSE) stabilised and even rose on the day. However, there is a general downward trend that will take the US and the world into global recession. If ever there was a good time to strike- it was this week!
It is also speculated that the terrorists may even have profited from the downward fall of specific shares in the insurance, airline and armaments sectors through the activity known as "selling-short".