Thursday, April 27, 2006

The Market and Osama Bin Lauden

How would the market react if Osoma Bin Lauden was captured by the United States? After thinking about this question, I thought that there would be big effects on our economy and our national debt. With the capture of Bin Lauden, the government would be spending much less on National Security because there would be a serious decrease in the likelyhood of a terrorist attack from the Taliban. There would be a decrease in military spending to try and capture him as well. In an article called, " How Would the Market React to the Death or Capture of Saddam or Osama?" this idea is somewhat analized by an economist. In the article, Mike Moffat states, "I think [the capture of Osama] will cause a one to three day rally on Wall Street. I'm not sure if I agree that it will cause any long term changed in the stock prices, however." After this statement he continues to state the the only exception to this is if one of the issues I mentioned above happened as a result of the capture.

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