With the stock market's blue chip stocks in the biggest weekly slump since the Depression, all eyes are on Wall Street.
"The drop in the stock market also reflects economic uncertainty. While typically the market drops and then rebounds after closure, it is difficult to predict exactly when the turnaround will occur. Stocks continue to remain an investment for the long-term," said Ann Owen, assistant professor of economics at Hamilton College.
Owen, a former Federal Reserve economist, has published several papers on long-run growth and income distribution and has researched how financial development affects the severity of business cycles, and an examination of the interaction between a country's ideology and its long-run growth.
"The recent terrorist attacks created economic uncertainty and most likely will reduce consumer and business confidence in the near term future," she said."As a result, consumers and businesses will curtail their spending, dampening further already weak GDP growth. In the longer term, reallocating resources towards increased military spending or to more extensive terrorist-prevention measures could lower productivity growth in the private sector."
