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Old 04-06-2007, 01:14 AM
ChicagoRy ChicagoRy is offline
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Default Re: Terrorism and Investing

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JK, yes that more or less makes sense. But I don't think it's quite as simplistic as the way you present it. If there were another attack of a 9/11 scale, not to downplay how bad that'd be, but the market effects will be less and less for every subsequent attack. The reason the market dips is mostly panic, and not anything innate to the actual value of the stocks (as you seem to understand). So keep in mind the "fear factor" will not always be quite what it was on Sept. 11 as people become more conditioned to it (assuming that continuing attacks are inevitable, as in your OP).

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Would some sort of nuclear device smuggled in and set off in a major metropolitan area be enough to cause a panic? I think the difference between something like this and a bomb blowing up a plane or a bus would have more impact on the markets compared to which number terrorist attack this is.
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