Quote:
Originally Posted by CaptainCrunch
Sure, but the other issues that were caused by 9/11 had a large part in the American Economy besides the actual money spend, which was huge.
American confidence was hard.
The govenment moved their focus away from domestic issues to foreign issues
The distraction of America's middle generation as they went off to war.
The removal of a flexible government that had a streak of panic in it.
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I think we'll have to agree to disagree on this one. The American economy would have collapsed regardless of any terrorist attacks. The sub-prime mortgage crisis had its roots in the Clinton administration, and the Bush administration did nothing about it, and in fact encouraged it much further.
The sub-prime mortage crisis essentially turned the American economy into one big pyramid scheme with people making money off lending money to other people with no actualy assets to back up the loans. The problems caused by this were so widespread that "distractions" weren't really the issue. There simply was no way to rectify the problem without collapsing the house of cards.
By the time September 11 happened things were already out of control, and Bush was not about to plunge the economy into a recession before re-election to his second term.
Housing prices peaked in 2005/2006 and then began to drop. George Bush's second term commenced in 2005.
Did the economies of Iceland, Greece, and Ireland collapse due to 9/11 as well? All those governments were also too distracted?