6A = THE UNIVERSITY DAILY KANSAN
NEWS
THURSDAY, SEPT. 13, 2001
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Future of nation's and world's economies questioned after deadly terrorist attacks
U. S. stock markets closed for now; may reopen soon
reopen soon
By Paul Smith Kansan staff writer
The prospects for the United States and world economies are uncertain in the aftermath of the destruction of the World Trade Center, which housed offices for several Wall Street investment firms.
The New York Stock Exchange and other markets across the nation have been closed since Tuesday's terrorist attacks in New York and Washington. D.C.
"It means people can't trade stocks for a couple of days," said Philip Schrodt, professor of political science. "For the average investor, it means absolutely
But it's harder to determine what the market closings mean for the economy overall.
nothing."
Bob Petersen, president and CEO of the Kansas City Board of Trade, is unsure what kind of economic repercussion the terrorist attacks might have.
"I think the President's message last night was that we're not going to let those incidents affect our economy," said Petersen, adding that his offices would resume business tomorrow.
The Kansas City Board of Trade and the other eight futures' markets in the nation were closed the past two days because of federal regulators' advice and out of respect.
"When you have a tragedy like this, you don't measure the cost of not doing business," Petersen said. "You just do it."
Whether the New York Stock
Exchange and other major markets would resume trading tomorrow remains unclear.
Schrodt said that there might be some short-term effect on the economy, but that it would probably continue along the same course it followed before the attack.
Schrodt told a class yesterday morning that The Economist and the Wall Street Journal made dire economic predictions last week.
"If a week from today, people notice the economy is in bad shape, that would have hap pened anyway," Schrodt said.
Mark Hirschey, professor of finance and Stockton Research Fellow, said he did not expect stock markets to dip when they resumed business.
"History says we should expect a quick drop in the market," Hirschey said in a written statement. "Perhaps as much as five to
10 percent when trading resumes. To sell into such a panic is more than unpatriotic, it is stupid."
Hirsche emphasized that the industrial sector of the economy remained unharmed by the attacks.
Ronald Francisco, professor of political science, also interpreted the condition of the nation's industry as a good sign.
"The basis of the economy is the productivity of the whole country, and that's OK," Francisco said.
Stock markets in Europe and Japan have been erratic since Tuesday, with the Nikkei Stock Average falling under the 10.000-point mark yesterday. That has not happened in 17 years.
— The Associated Press contributed to this story
Contact Smith at 864-4810
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The KU HILI Foundation would like to formally invite you to a UH Holiday Dinner..
Erev Rosh Hashanah Dinner
Monday, September 17, 6pm
Kansas Room at the Student Union
Tickets: $10 (in advance) $12 (at the door)
Reserve a table for your friends and family!
Space is limited. contact us today. (785) 749-5397 or ssl@kuhillel.org
HELP FROM THE HEARTLAND
Community Blood Center employee Horace Henderson prepares blood bags at the Kansas Blood Center, 535 Gateway Drive. The center's waiting area was packed yesterday with blood donors spurred to help the request for blood because of Tuesday's East Coast destruction.
THAD ALLENDER/KANSAN
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- Parents can stay up with campus events.