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The terrorist attack of September 11, 2001, has created a severe shock to the global economy. The attack helped reduce the confidence of economic agents. Although other nations were affected, the United States stands to suffer the most. Before the September attack oil prices soared, while inflationary concerns increase in some countries. A steep decline in the technology field of information and communications was felt. Capital spending by corporations, due to a decline in profits, were incurred. This created cutbacks and a drop in the stock market. Consumer confidence has slipped because of layoffs and unemployment. This has also caused global slowdown both in world trade and the local economy. “Doug Duncan, economist for the Mortgage Bankers Association, predicts strong economic growth the rest of this year and into 2004, but believes that the unemployment rate will barely budge, ending up at perhaps 5.7 percent at the end of 2004. "I expect not dramatic, sudden changes, but a steady improvement in employment," he says” (Lewis).
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