Could the U.S. Economy Withstand Another 9/11?
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK ( TheStreet) -- On Sept. 10, 2001, the U.S. economy was in a soft patch, partially due to the dot-com crash. The day after 9/11, it was softer. Ten years later, the U.S. economy is several notches softer again. Could the economy manage the shocks of a second 9/11?
In the soft economy that surrounded 9/11, the fed funds rate reached a low of 1%. Unemployment reached a high of 6.3%. Federal debt was about 56% of GDP. Shortly after the news of 9/11, gold prices skyrocketed 33% to $287 in London trading, and the New York Stock Exchange closed -- for four days.
When it reopened on Sept. 17, 2001, the Dow Jones Industrial Average plunged 685 points, its largest single-day point drop. In one week, the Dow dropped 14.3%. Consumer confidence had its biggest one-month drop, falling from 114 to 97.6.
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