What's With the Stock Market?

[leftylady]

9/11 caused a major collapse. That was 2 buildings and 2900 people.

NO hasn't seemed to have much effect. That's one whole city and thousands of people. And the most important port and the oil region.

I don't get it.

[enid602]

1. Stock market

The market was WAY overpriced prior to 911. When the aircraft struck, Wall Street was down for a few days. When it reopened, stocks tumbled.

[leftylady]

3. I know - but why haven't they tumbled this time?

You would think there would be a huge reaction in the market.

[Onlooker]

2. Deficit spending

Bush is being forced to spend massively to fix the regions affected by Katrina. Upwards of $50 billion may be spent, and that money is prompting investment in the firms that will be involved in rebuilding. Of course this is deficit spending, which means that sooner or later we'll probably have a recession brought about by inflation. (That said, I'm all for spending billions to give people jobs and homes and rebuild New Orleans.)

[bobbieinok]

4. my question too--oil companies, Halliburton increase in value??

[lectrobyte]

5. oil profits are going to be huge. stocks like Home Depot etc. have

to be rising. Halliburton is getting new contracts to repair Katrina's damage. I bet Wall St. is almost having a wargasm.

[PDX Bara]

8. Wargasm

Absolutely brilliant!

[K-W]

6. The financial industry isnt based in New Orleans. EOM

[newswolf56]

7. Wall Street's behavior in this situation amounts to applause...

from the oligarchy for Bush's deadly success at turning a natural disaster into a weapon of class warfare.

[berni_mccoy]

9. Insurance companies know they won't be hit

this time like they *thought* they were on 9/11. But the CHARITY of the Republican Gov't was so GENEROUS to the ULTRA-PROFITABLE INSURANCE companies that it barely affected their bottom line. Now they KNOW this, so Wall Street isn't worried.

Besides, all the investors in the 'know' on wall-street saw 9/11 as a Sell-Off opportunity prior to a war... they bottomed out the market knowing a War would bring profits... then they bought in just before the war... Oil and Defense contractors are up over 200% since March 2003.... look it up on any web-based finance chart like msn.com or yahoo.

[lpbk2713]

10. There was a lot of hysteria because our country was under attack.

This time people know it's only Mother Nature to blame so they aren't in a panic.

[AlCzervik]

11. oil prices came down a bit and it's only been a week since Katrina

the market doesn't like instability. When the longer term effects are felt the market will probably follow suit.