Finanical Crises of September 11th Essay

September 11, 2001, will forever be remembered as a day of tragedy for the United States as an act of terrorism killed roughly 3,000 people at the World Trade Center, and 200 at the Pentagon. Terrorists hijacked four separate aircraft that day, two planes were crashed into the north and south tower of the World Trade Center in New York, one was crashed into the Pentagon in Virginia, and the last one crashed into a field where it was believed that passengers disrupted the hijackers, causing the aircraft to crash before reaching its target. Both towers eventually fell, and this attack brought about the beginning of many changes for the United States, that had a ripple effect onto other nations. On September 20th, Bush called for an emergency joint session of the US Congress where he announced the creation of the Department of Homeland Security (MacFarlane, P. J., 2017). Along with this new department came the development of several measures that were implemented to prevent future attacks. Although the terrorist attacks of 9/11 were devastating and caused turmoil and unrest for the United States, even to present day, there were some positive outcomes to be had from this event.

Not only did the attack of 9/11 physically, emotionally, and physiologically hurt U.S citizens, but it also hurt America economically, culturally, and health wise. After the attack happen, the U.S stocks lost $1.4 trillion in valuation for the week. In New York City, about 430,000 job-months and $2.8 billion dollars in wages were lost in the three months after the attacks. The economic effects were mainly on the economy's export sectors. The city's GDP was estimated to have declined by $27.3 billion for the last three months of 2001 and all of 2002. The U.S. government provided

The September 11 attacks were set of four terrorist attacks controlled by al-Qaeda, an Islamic terrorist group. On September 11, 2001, four aircrafts were hijacked by the terrorists; two of the planes hit Twin towers in New York, third hit the Pentagon and the fourth one crashed into a field near Shanksville, Pennsylvania (“9/11 Attacks”). The September 11 attacks had several long-term negative effects that include Social effects, Psychological effects, Physical health effects, Economic effects and many more. But of all those effects, Economic effects were the most suffered ones. The 9/11 attacks triggered the devastation of American economy (Miley). Although it has been 12 years since the episode and America has recovered a lot, American

Our economy is a machine that is ran by humans. A machine can only be as good as the person who makes it. This makes our economy susceptible to human error. A couple years ago the United States faced one of the greatest financial crisis since the Great Depression, which was the Great Recession. The Great Recession was a severe economic downturn that occurred in 2008 following the burst of the housing market. The government tried passing bills to see if anything would help it from becoming another Great Depression. Trying to aid the government was the Federal Reserve. The Federal Reserve went through a couple strategies in order to help the economy recover. The Federal Reserve provided three major strategies to start moving the economy in a better direction. The first strategy was primarily focused on the central bank’s role of the lender of last resort. The second strategy was meant to provide provision of liquidity directly to borrowers and investors in key credit markets. The last strategy was for the Federal Reserve to expand its open market operations to support the credit markets still working, as well as trying to push long term interest rates down. Since time has passed on since the Great Recession it has been a long road. In this essay we will take a time to reflect on these strategies to see how they helped.

On the morning of September 11 2001, terrorists hijacked four planes from American Airlines and United Airlines with the goal of ruining the U.S economy. Two of the planes achieved their goal and targeted both towers of the World Trade Center along with the Pentagon, resulting in the death of approximately 2,975 people. The events that took place on this day had a great impact not only in America, but around the world as well. After this day there were major changes in air travel, new government regulations, and a financial crisis.

On the morning of September 11, 2001, an Islamic terrorist group known as al-Qaeda carried out a series of four attacks on the United States. The most well-known attack is when two commercial airline planes crashed into the Twin Towers in New York City. Many innocent lives were lost and families were torn apart. While many Americans were determined to show their resilience towards the attacks, this is a day many Americans will never forget. Although the attacks happened sixteen years ago, Americans are still dealing with the impacts these attacks have had on life in America. The 9/11 attacks have had several long-lasting effects on everyday life in America, some of which include an increase in airport security, a change in national security, and an increase the fear of terrorism.

To stabilize the economy bonds are used which release money into the market. The responsibility of the Central Bank is to maintain the health of the banking system and regulating the purchase and sale of bonds. The interest rates are controlled to balance the markets. According to the Monetary Policy Report to Congress, “The Federal Open Market Committee (FOMC) maintained a target range of 0 to ¼ percent for the federal funds rate throughout the second half of 2009 and early 2010” while representing forecasted economic decisions to rationalize low levels for longer times on the federal funds rate (Federal Reserve, 2010). Purchases were still being made by the Fed’s to result in improvements to the economy through focusing on mortgages, the real estate market, and the credit market. Predictions by the Federal Open Market Committee depicted low levels on the federal funds rates in early 2010 which would continue for some time while over time the economy would see growth, a rise in inflation, and a decline in unemployment. Feds were in agreement though they expected the recovery process to be slower. Purchases by the Federal reserve were slowed, “$300 billion of Treasury securities were completed by October” and “the purchases of $1.25 trillion of MBS and about $175 billion of agency debt” were suppose to be finished the first quarter of 2010 (Federal Reserve, 2010).

September 11, 2001, millions of New Yorkers and American citizens woke up and started their day, unprepared and unaware for the catastrophic attack that would be taking place in just a few short hours. At 8:46 a.m., Eastern Standard Time, Flight 11 crashed into the North Tower. The impact killed all of the passengers and crew as well as hundreds inside the building. At 9:03 a.m., a second plane, Flight 175, crashed into the corner of the South Tower killing passenger, crew, and workers who worked on floors seventy-five to eighty-three. Flight 77 crashed into the Pentagon at 9:37 a.m. killing approximately 185 individuals (History.com Staff). Because of the damaged to the support system, fires, and impact at extremely fast speed, the South Tower collapsed at 9:59 a.m. (Lipton and Glanz). Having heard about the acts of terrorism that had just taken place in New York and Washington, D.C., a group of passengers drove their plane, Flight 93, into a Pennsylvania field killing everyone on board but possibly saving hundreds of other lives in the process. The North Tower collapsed at 10:28 a.m. 102 minutes after being struck (History.com Staff). On September 11, 2001, almost twelve hundred people were wounded or killed by “coordinated suicide attempts” by Al Qaeda terrorists. In result to the four airplanes being hijacked and used for premediated reasons, the United States government instituted new regulations for entering the country and airport security as well as expounded on systems already in place.

The financial crisis that happened during 2007-09 was considered the worst financial crisis in the world since the great depression in the 1930s. It leads to a series of banking failures and also prolonged recession, which have affected millions of Americans and paralyzed the whole financial system. Although it was happened a long time ago, the side effects are still having implications for the economy now. This has become an enormously common topic among economists, hence it plays an extremely important role in the economy. There are many questions that were asked about the financial crisis, one of the most common question that dragged attention was ’’How did the government (Federal Reserve) contributed to the financial crisis?’’

The collapse of Lehman Brothers, a sprawling global bank, in September 2008 almost brought down the world’s financial system. Considered by many economists to have been the worst financial crisis since the Great depression of the 1930s. Economist Peter Morici coined the term the “The Great Recession” to describe the period. While the causes are still being debated, many ramifications are clear and include the failure of major corporations, large declines in asset values (some estimates put the drop in the trillions of dollars range), substantial government intervention across the globe, and a significant decline in economic activity. Both regulatory and market based solutions have been proposed or executed to attempt to combat the causes and effects of the crisis.

During the financial crisis, the Fed’s monetary policy and the Treasury’s fiscal policy were both expansionary and thus essentially complementary to each other. Both policies aimed at stimulating the economic activities and stabilizing the credit market and the entire financial system. During the crisis, the inflation rate dropped significantly as the commodity prices plummeted, which freed the Fed from worrying about inflation risk. The foreign investors poured their money into the U.S. Treasury, allowing the U.S. government to borrow at extremely low interest rates. The various actions taken by the Treasury and the Fed served to work together to address the problems which were critical to save the U.S. financial system from collapse and to end the most severe recession since the Great Depression.

The September 11th attacks have had a profound effect on American history. Often referred to as “9/11”, these attacks were comprised of a group of organized terrorists known as Al-Qaeda. This extreme Islamic group assaulted several landmarks in New York City, Washington D.C, and the state of Pennsylvania. In New York City, two airliner jets were hijacked with passengers aboard and slammed into the World Trade Center. “The next attack resulted in a plane colliding into the Pentagon, government building; the last attack was in Pennsylvania when a plane crashed into a field. In total, 3,000 people died on September 11th, 2001” (History.com Staff). The September 11th-attacks have affected airport security by the new training of flight attendants, the formation of the Transportation Security Administration and new technical advances to keep up with increased terror threats.

The airline industry has seen drastic changes since September 11, 2001. The government ordered a complete shutdown for three days of not only all commercial aircraft but such carriers as domestic flights and emergency aircraft. For days after September 11th, all aircraft stayed on the ground. Even military aircraft had to receive special clearance to fly. In a ripple effect, the entire economy of the United States and the world was put on hold. The New York Stock Exchange shut its doors because of the attacks on the towers of the World Trade Center.

September 11th was the worst day for airline companies around the world. There was close to a 20% drop off in airline traffic in the fourth quarter of 2001. The U.S. commercial airline industry was in turmoil and

Risk related to events even before the War on Terror began, the Sept. 11, attacks dealt a harsh blow to America financial standing (DePietro, 2017).sintressing the future role in which finance leadership is evolving. Equally alarming this crisis that influences an organization's decision-making, based on significant external and uncontrollable factors. Some of these aspects that remained obtainable in this discussed involve the economic factors, legal, political, and social conditions technological changes. The change of Interest rates in