Economics Today :: essays research papers

The Economics nowThe scuttle bell on the deck of the New York Stock Exchange September 17, 2001 was a butt against that no one was sure about. The Stock Exchange had not been hand since the tragedies that occurred on September 11, and many were skeptical about how the market would removede on its first day of trading. We lost not precisely our perceptual constancy of our commonwealth the day the planes hit the World Trade Centers, but the stability of our delivery as well.The Dow Jones closed at 8,920.70 and suffered the worst point vent since declination of 1998. legion(predicate) other indexes magnetic dipped just as sharply afterwards the opening bell and stayed down until the market closed for the day. The losses could acquit been far worse had the Federal Reserve not cut short federal official funds interest evaluate from 3.5% to 3%. It was the Federal militia eighth interest cut this year and the third to occur between plan meetings. major banks, such as the European Central depository financial institution and primordial banks in Canada and Switzerland also cut key interest considers in what was seen as a coordinated effort to restrict the monetary cost of the terrorist tragedies.However, despite government efforts, the market losses were still great. Major financial companies lost ground as well. Bank of America Corp.s cable dropped by 5.72%. Citigroup lost 6.71%. Broader indexes losses were slightly lower. The Wilshire 5000 lost 513.31 points, or 5.08%, apogee at 9,590.69.Hit hardest were the airlines. Analysts predict that the airline industry, already thinned by the slowing economy, could lose more than $10 cardinal in the evoke of that weeks terrorists attacks. Delta Airlines plans to cut 80% of its flights. Continental Airlines officials state in a statement they pose seen a drastic drop in bookings in an already-declining economy. Since the FAA allowed flights to resume last Thursday, Continental has been runnel only about 50% of its flights, with an average of about half the seating room full. Continental was also said to have $800 million in immediate payment on hand, but that it was burning through it at a rate of $30 million a day to stay in business. Many companies have told their employees to avoid airlines in light of the recent tragedies, and without help from recounting or more people flying, Continental could go bankrupt by the windup of October.Last Friday, the House of Representatives introduced a bill that would provide $15 billion in direct aid, loans, and credit to the nations airlines.Economics Today essays research papers The Economics TodayThe opening bell on the floor of the New York Stock Exchange September 17, 2001 was a ring that no one was sure about. The Stock Exchange had not been open since the tragedies that occurred on September 11, and many were skeptical about how the market would execute on its first day of trading. We lost not only our stability of o ur nation the day the planes hit the World Trade Centers, but the stability of our economy as well.The Dow Jones closed at 8,920.70 and suffered the worst point loss since December of 1998. Many other indexes dropped just as sharply after the opening bell and stayed down until the market closed for the day. The losses could have been far worse had the Federal Reserve not cut short-term federal funds interest rates from 3.5% to 3%. It was the Federal Reserves eighth interest cut this year and the third to occur between scheduled meetings.Major banks, such as the European Central Bank and central banks in Canada and Switzerland also cut key interest rates in what was seen as a coordinated effort to restrict the financial damage of the terrorist tragedies.However, despite government efforts, the market losses were still great. Major financial companies lost ground as well. Bank of America Corp.s stock dropped by 5.72%. Citigroup lost 6.71%. Broader indexes losses were slightly lower. T he Wilshire 5000 lost 513.31 points, or 5.08%, closing at 9,590.69.Hit hardest were the airlines. Analysts predict that the airline industry, already weakened by the slowing economy, could lose more than $10 billion in the wake of that weeks terrorists attacks. Delta Airlines plans to cut 80% of its flights. Continental Airlines officials said in a statement they have seen a drastic drop in bookings in an already-declining economy. Since the FAA allowed flights to resume last Thursday, Continental has been running only about 50% of its flights, with an average of about half the seats full. Continental was also said to have $800 million in cash on hand, but that it was burning through it at a rate of $30 million a day to stay in business. Many companies have told their employees to avoid airlines in light of the recent tragedies, and without help from Congress or more people flying, Continental could go bankrupt by the end of October.Last Friday, the House of Representatives introduc ed a bill that would provide $15 billion in direct aid, loans, and credit to the nations airlines.