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Markets will rebound!!
Our hearts go out to the families of all those affected by the recent horrific events in New York and Washington .
The destruction of the World Trade Center has impacted the head offices of a number of companies, many of them
brokerages. The World Trade Center's largest tenant was Morgan Stanley Dean Whitter. Other tenants included Merrill Lynch, Credit Suiss First Boston, Bank of American and Deutsche Bank. The New York Stock Exchange itself was not affected.
From a long term perspective, the economy has gone through two world wars, numerous other conflicts, loan bank collapses, and energy crises, among other things. Although this is a terrible tragedy and it may lead to greater volatility over the next few months, the economy will survive.
The US Federal Government has already moved to increase the availability of cash which will help those companies affected. Analysts are suggesting interest rates will drop faster to help the economy.
As terrible as this tragedy is, it will not affect the long term growth of the economy. Those invested for the long term need to view this as another event the economy will deal with. Like many of the leaders you may have heard from we remind you to remain calm. Panic reaction to events like this are never the appropriate response.
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