Game not played, flight not flown, shopping trip not taken all affect economy

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

Game not played, flight not flown, shopping trip not taken all affect economy NEW YORK (AP) -- A stock trade isn't made and a commission isn't earned because the markets are closed. A bond isn't sold because a rating agency's computers don't work. A shipment doesn't move because flights aren't operating on schedule.

Small problems such as these, the fallout from the attacks on the World Trade Center, could cascade into big problems for the U.S. economy, experts say.

"Some business is lost forever," said Mark Vitner, an economist at First Union Securities in Charlotte, N.C. "At this point, a lot of business and household decisions are being postponed. The longer it goes on, the deeper the problems for the economy."

Vitner said there's no question that reduced activity as a result of the attacks will cut economic growth in the short term, possibly driving it into the negative range for the third quarter.

Many businesses that operated in the Wall Street area are still reeling from the damage caused to buildings, computers and utilities by Tuesday's collapse of the trade center towers.

The computer operations of both Moody's Investors Service and Standard and Poor's were still down Wednesday, as were the cash transferring operations of the Bank of New York, one of the nation's largest processors of securities and payments.

New York and Chicago stock markets weren't expected to open before Friday at the earliest, although the Chicago Board of Trade and Chicago Mercantile Exchange plan to resume electronic and floor trading on Thursday.

Still, the biggest challenge may be overcoming the drop in confidence caused by fear.

"You have to keep your eye on the consumers," said Gary Thayer, chief economist at A.G. Edwards & Sons Inc. in St. Louis, Mo. "If they don't feel comfortable going out to the malls or going to public events like baseball games, these are things that will subtract from the economy."

He added: "The same applies to business. If people feel they can't travel or feel that security measures are so severe they don't want to travel, it could be a drag."

Most airlines were grounded after the attack, and the Bush administration said Wednesday it would continue the ban on air travel until the safety of passengers could be ensured.

Both Thayer and Vitner said decisions to suspend major league baseball games and to close shopping malls also contributed to a potential downturn in consumer confidence and spending, a key driver of the economy.

Among the industries already feeling the pinch are air travel, hotels and restaurants, entertainment and retail.

Robert Brooks, a professor of financial management at the University of Alabama in Tuscaloosa, worries about long-term effects of the market closure.

"The people who are making their living trading stocks are clearly not making any money right now," Brooks said. "But every day that it remains closed, there's more uncertainty in the marketplace and that can only lower the value of stocks and depress things further."

No one has yet tallied the impact of the physical loss, either.

James Meiskin, president of Plymouth Partners, one of the largest relocation firms in New York, estimated that up to 12 million square feet of office space in the Wall Street area has been destroyed.

He speculates that just half of that will be replaced -- a huge long-term loss in rents for owners, fees for service providers and taxes for the city.

"A lot of these firms were downsizing already," Meiskin said. "Some are gone forever, obliterated. And some are too traumatized to consider staying in New York."

http://www.canoe.ca/MoneyEconomic/sept12_econdisrupt-ap.html

-- Martin Thompson (mthom1927@aol.com), September 12, 2001

Answers

SHUT your FUCKING MOUTH, MARTIN. Heaven will deal with you yet. Oh, you think you are Mr. Economics? What a "high stature", you place yourself.

-- Working Stiff (forall@mankind.com), September 12, 2001.

Please keep it up Martin! This board and the information you provide are invaluable to many. God will likely reward you.

-- Ken (n4wind@sonic.net), September 12, 2001.

Some disruptions in economic and daily life, at least in a militarized city such as San Diego, are not being widely reported. Roadside checkpoints and securtiy checks are causing major waits, traffic jams. This causes widespread lateness to jobs and business appointments. These roadside security checks also act to deter ordinary travel by car, including shopping trips. Many meetings and activities are being cancelled. Business shedules are being adversely impacted, with a cascading "domino" effect. The adverse economic impact is considerable indeed, especially as it is being imposed upon an already sputtering economy.

-- Robert Riggs (rxr.999@worldnet.att.net), September 13, 2001.

Keep it up, Martin (I like the way you are accused of being "Mr. Economics" for just posting the news).

I look for meaningful news stories all the time, but I'd be as dumb as an ox eating grass without you. You always seem to find valuable things I miss.

-- JackW (jpayne@webtv.net), September 13, 2001.


I love your contributions, Martin, and look forward to your postings. You are keeping this board lively, with good, pertinent information.

R. Riggs, you, too, throw in some real good analysis of all this stuff.

-- RogerT (rogerT@c-zone.net), September 13, 2001.



Here's another vote of confidence for you, Martin. You missed your calling. You are a born newshound. I always appreciate your postings.

-- Loner (loner@bigfoot.com), September 13, 2001.

If you don't like the message, kill the messenger. That will fix everything.

I admire your bravery, Martin.

-- Chance (fruitloops@hotline.com), September 13, 2001.


What the f**k is wrong with "working stiff" -- most original postings on this board are of articles written elsewhere, not the opinion of Martin Thompson or anyone else.

This guy is a certainly "stiff" above the neck.

Keep up the search and posting, Martin and everyone else. All articles and opinions found should be posted, whether you agree with them or not.

-- PHO (owennos@bigfoot.com), September 13, 2001.


Martin, I apologize for the outburst by Working Stiff. The reason for my apology is first, no human needs to treat another human this way and second, because he associates himself with Christianity by his reference to heaven. There are many who talk the talk, but few who walk the walk. Press on Martin.

-- Phil Maley (maley@cnw.com), September 13, 2001.

Moderation questions? read the FAQ