Economics Today


Length: 632 words (1.8 double-spaced pages)
Rating: Excellent
Open Document
Need writing help? Check your paper »

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Text Preview

More ↓
The Economics Today

     The opening bell on the floor of the New York Stock Exchange September 17, 2001 was a ring that no one was sure about. The Stock Exchange had not been open since the tragedies that occurred on September 11, and many were skeptical about how the market would fare on its first day of trading. We lost not only our stability of our nation the day the planes hit the World Trade Centers, but the stability of our economy as well.
     The Dow Jones closed at 8,920.70 and suffered the worst point loss since December of 1998. Many other indexes dropped just as sharply after the opening bell and stayed down until the market closed for the day. The losses could have been far worse had the Federal Reserve not cut short-term federal funds interest rates from 3.5% to 3%. It was the Federal Reserves’ eighth interest cut this year and the third to occur between scheduled meetings.
     Major banks, such as the European Central Bank and central banks in Canada and Switzerland also cut key interest rates in what was seen as a coordinated effort to restrict the financial damage of the terrorist tragedies.
     However, despite government efforts, the market losses were still great. Major financial companies lost ground as well. Bank of America Corp.’s stock dropped by 5.72%. Citigroup lost 6.71%. Broader indexes’ losses were slightly lower. The Wilshire 5000 lost 513.31 points, or 5.08%, closing at 9,590.69.
     Hit hardest were the airlines. Analysts predict that the airline industry, already weakened by the slowing economy, could lose more than $10 billion in the wake of that week’s terrorists attacks. Delta Airlines plans to cut 80% of its flights. Continental Airlines officials said in a statement they have seen a “drastic drop in bookings in an already-declining economy”. Since the FAA allowed flights to resume last Thursday, Continental has been running only about 50% of its flights, with an average of about half the seats full. Continental was also said to have $800 million in cash on hand, but that it was burning through it at a rate of $30 million a day to stay in business. Many companies have told their employees to avoid airlines in light of the recent tragedies, and without help from Congress or more people flying, Continental could go bankrupt by the end of October.
     Last Friday, the House of Representatives introduced a bill that would provide $15 billion in direct aid, loans, and credit to the nation’s airlines.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

How to Cite this Page

MLA Citation:
"Economics Today." 123HelpMe.com. 17 Dec 2017
    <http://www.123HelpMe.com/view.asp?id=63519>.
Title Length Color Rating  
The Return of Depression Economics and the Crisis of 2008 Essay examples - In The Return of Depression Economics and the Crisis of 2008, Paul Krugman warns us that America’s gloomy future might parallel those of other countries. Like diseases that are making a stronger, more resistant comeback, the causes of the Great Depression are looming ahead and much more probable now after the great housing bubble in 2002. In his new and revised book, he emphasizes even more on the busts of Japan and the crises in Latin America (i.e: Argentina), and explains how and why several specific events--recessions, inflationary spiraling, currency devaluations--happened in many countries....   [tags: Economics] 1076 words
(3.1 pages)
Strong Essays [preview]
Essay on Divisions of The Field of Economics - ... Micro economists believe it is the forces of supply and demand in any market eliminate any shortages or surpluses in that market. Using Adam Smith's "invisible hand" metaphor, competitive markets will provide the most efficient distribution of resources. Macroeconomics focuses on shifts in the business cycle, and the implications of these movements in economic growth, inflation, recession, productivity, budget deficits, trade deficits, and the value of our currency. Macroeconomists believe that the broader economy, composed of many goods and services will not always self-correct....   [tags: micro economics, macro economics] 1401 words
(4 pages)
Powerful Essays [preview]
Why Most of the Industries Today are Oligopolies Essay - Why do you think most of the industries today are oligopolies. Q. Why do you think most of the industries today are oligopolies. Oligopoly is a market structure in which there are a few large firms with a concentrated market share, an example of an oligopoly today would be Nike, Reebok and Adidas for shoes. Most industries today are oligopolies, the possible reasons for this would be that oligopolies in contrast to monopolistic competition would be able to earn abnormal profits in the long run as well as the short run, as shown in the previous section The reason for this is that there are barriers to entry and exit to potential firms....   [tags: Economics] 617 words
(1.8 pages)
Good Essays [preview]
Consumption Patterns and Economics Essay - Consumption Patterns and Economics Introduction In order to get a better understanding of trends in consumption patterns, one must first understand the basic principles of economics. For the purpose of this assignment I have chosen an article from The American Journal of Clinical Nutrition that comments on the recent increase in body weight and food consumption patterns of today’s children. This paper will define such terms as economics, microeconomics, the law of supply, the law of demand, and identify the factors that lead to a change in supply and a change in demand....   [tags: Consumer Demand Economics] 1345 words
(3.8 pages)
Strong Essays [preview]
Economics Research Paper - Social studies is a huge part of the elementary curriculum. Without social studies, elementary students would have a huge gap in their knowledge content. Economics is responsible for providing a large amount of information to students. For third graders, the North Carolina Department of Public Instruction places economics under goal five. Goal five divides communities and the basic economic principles into seven objectives. The first objective for third grade economics asks for students to understand the definition of scarcity and be able to provide examples....   [tags: Economics]
:: 3 Works Cited
1460 words
(4.2 pages)
Powerful Essays [preview]
Essay on Today's Realities and Yesterday's Models - Today's Realities and Yesterday's Models Today's realities do not necessarily fit yesterday's models. In a universe where shifting paradigms are the norm, scientists are in continued search to establish cause and effect relationships between events that can be modeled. We see behaviorists scurrying for specific reasons as to why two youths could commit such heinous acts in Colorado. Their existing models could not predict such atrocity. Meteorologists and environmentalists are developing an explanation for global warming....   [tags: Economy Economics Employment Essays]
:: 6 Works Cited
1151 words
(3.3 pages)
Better Essays [preview]
Economics Essay -      Definition of Topic: Economics is the study of supply and demand. It defines the ways that human beings allocate resources and how resources are distributed amongst a market. It allows you to see trends in current market places and predict what may happen in the future. Many different subjects were once regarded as a part of economics. Political science and even sociology were once considered part of the field. These subjects still play a major role in understanding economics but are also completely separate disciplines today....   [tags: Understanding Economics Essays]
:: 2 Works Cited
1694 words
(4.8 pages)
Better Essays [preview]
Why Aren't Companies Today Borrowing Money? Essay - Today many different economic problems affect various groups within our nation, and around the world. Some of these problems affect small groups while others have a larger, global impact. It is not easy to place a higher importance to any single problem over another, mainly because all the problems are all indeed very important to those who they involve, regardless of how large or small that number is. Today we see one trend that is affecting companies on a global base, involving many people. When you consider the number of people who support their lives via the income derived from larger scale companies, you start to understand the wide spread cost of decisions made by these companies....   [tags: Economics Essays] 608 words
(1.7 pages)
Strong Essays [preview]
Economics in One Lesson By Henry Hazlitt Essay example - Henry Hazlitt’s book, Economics in one lesson, brings to perspective numerous topics that are mainstream issues in the economy today. His book breaks down in detail specific concepts that have their effects on the economy. Hazlitt explains topics such as war and the expenses, the tariff system, and productivity and the minimum wage laws.      One concept Hazlitt emphasized on was how economics was viewed for temporary needs, versus more permanently viewed.      “In addition to theses endless pleading of self-interest, there is a second main factor that spawns new economic fallacies every day....   [tags: Economics in One Lesson Henry Hazlitt] 1976 words
(5.6 pages)
Better Essays [preview]
Issues In European Economics Essay examples - Issues In European Economics Economic integration between national countries can be defined as the removal of trade obstacles in the production and movement of goods between these countries. Integration does not stop there as furthermore common policies are introduced. Along with these policies comes governing bodies over these policies editing and modifying to better the collective group. Integration between countries can be absolutely essential for survival in the world market. Over the past 50 years, superpowers like America and China have been dominating markets due to their huge supply of labour and other resources....   [tags: Economics] 1992 words
(5.7 pages)
Strong Essays [preview]

Related Searches




Even with this aid many experts say the outlook for the industry looks bleak.
          However, not all airlines are in serious distress. Dallas-based Southwest Airlines is resuming its full slate of flights and keeping all employees on the job. Southwest’s financial situation is not as dire as that of the bigger airlines because of low airfare and operation costs and a huge cash reserve. Before the World Trade Center attacks the company had about $1 billion in the bank and drew about $500 million on its credit line. Travel demand already had dropped this year because of the weaker U.S. economy, rising unemployment, and a decline in consumer confidence. Although regional air carriers may see slight improvement, international flights will continue to suffer greatly. During the Gulf War, airline traffic dropped by more than 20% due to fears of terrorism.
     It is too soon to predict whether or not our economy will go into a recession or whether it shall bounce back. If recent trends continue, stocks will continue to plummet and airlines will become bankrupt. Some airlines will go bankrupt and others will survive. The U.S. economy is the strongest in the world and with government assistance and the help of other nations, we will restore or economy to where it once was.
     

     


Return to 123HelpMe.com