A Look Back at Dire Predictions from 9/11
How airlines, insurance, defense and NYC are faring after the attacks.
The downing of the World Trade Center and the attack on the Pentagon on September 11, 2001, shocked the global financial markets. In the days following the terrorist attacks, the major world indexes plummeted, and we heard of 1930s-style depressions, permanent disruptions of global trading, and the return of Reagan-era defense budgets. Thankfully, few of these worst-case scenarios have materialized. Here's a retrospective of some of those prognostications and how they panned out.
Insurance Companies Will Falter
The 9/11 terrorist attacks will likely cost the insurance industry $40 billion to $50 billion, according to the Alliance of American Insurers. (For perspective, the entire pharmaceutical industry earned $50 billion in 2001.) That's an enormous blow for a single industry, and at the time of the disaster, many thought it was more than a few companies could swallow. Although the companies were not underwriting for such catastrophic losses, the industry has held up well; there haven't been any major failures as a result of the WTC and Pentagon attacks.
Todd Lebor has a position in the following securities mentioned above: GD. Find out about Morningstar’s editorial policies.