The terrorist attacks on the World Trade Center will cost New York's economy up to 105 billion dollars and 115,000 jobs. Allen Hevesi, the city comptroller, did a recent report of the breakdown of some costs: Rebuilding the World Trade Ce

The Fiscal policy was also eased significantly in the immediate aftermath of the attacks. Business Week reported that " The US Congress rapidly approved a $20 billion announcement by the President, and then promised a further $20 billion for the restoration work. In addition, the Administration announced another set of support measures with a $15 billion rescue package for airlines, including $5 billion in direct grants to cover immediate losses, and $10 billion in loan guarantees. These latter guarantees necessarily imply a potentially huge contingent liability and not without their critics. Additional spending on defense expenditure is suggested to be of the order of $18 billion this year, and a massive $60 billion next year." Business Week continues to write that " Altogether, this represents a very major fiscal stimulus, primarily resulting from the decision to effect a military response and the recovery/restoration work, together with the perceived desirability of immediate action in support of some specific sectors. It does equally provide a major economic stimulus at a time of very fragile confidence and the threat of a significant slowdown in activity." The key issue determinant in the US is likely to be the short and medium trend in business and, particularly, consumer confidence, and it will take time before this can be assessed properly.

The attack on the World Trade Centers has caused a major drop in the stock market. One of the nation's largest bond dealers continues to struggle to put their business back together. The Washington Post reported that " More than 40,000 people occupied offices in a cluster of seven buildings surrounding the Trade Center Towers, and there was still no accurate count of how many were killed. The firms battered by the attack span a wide range of financial and business specialties, including the brokerage desks of Morgan Stanley Dean Witter & Co., insurance and risk management services at Marsh & McClennan Companies Inc., investment banking offices of Salomon Smith Barney and market analysts at Fred Alger Management Inc." Many of the firms played a major role in the stock market. The Washington Post also reported " Harwick Simmons, chief executive of the Nasdaq Stock Market, said that 19 of the 32 small stock brokerage firms located in the World Trade Center failed to respond to a test of the market's electronic network. Securities and Exchange Commission spokesman John Heine said that the agency did not yet know the names of the 19 or where customers of those firms should go to find out about their accounts or recover their money.

A recent article on the Internet titled, " Attack on America", reported that the Federal Reserve to push a key interest rate to its lowest level in four decades in an effort to get consumers spending again. In the midst of the terrorist attacks, consumer confidence has plunged by a large amount, which is a threatening development given that consumer spending accounts for two-thirds of total economic activity. In the New York Times Business Day section, The Commerce department reported "Consumer spending fell 1.8 percent in September and that Construction Spending declined 0.4 percent in September, the fifth consecutive monthly drop. The decline brought spending to $843.1 billion at an annual rate, the slowest this year. The drop in Consumer Spending, after a rise of 0.3 percent in August, was larger than expected and the sharpest since January 1987, when blizzards kept shoppers at home. Growth in personal incomes, which rose less than 0.1 percent in August, was the weakest since incomes fell 3.9 percent in January 1994." Many analysts believe that the country is now in a recession, which will probably last until next year. Because of the attack on America, Feds are trying to cut interest rates. The New York time reports, "The rate is now the lowest in four decades. Investors are expecting a quarter-point cut next week and another

Some common words found in the essay are:
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Approximate Word count = 3207
Approximate Pages = 13 (250 words per page double spaced)