State Of The Economy And Its Effect On The Stock Market

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in an industry likely to be affected by the terrorist attacks, you might want to hold off on big purchases. Also, if you already carry a lot of debt, you should likely pass on today's great deals."
As our next research source indicates, the interest rates of today are a reflection of just such caution and market uncertainty. As of August 2002, "The economy grew by only 1.1% in the second quarter after a 5% rebound in the first three months of this year. In other signs of a faltering recovery last month, manufacturing slowed down considerably, consumer confidence sank, and companies added only 6,000 jobs, keeping unemployment stuck at 5.9%." (Tran) The article goes on to state that interest rates are at a 40 year low, and this source states that there was widespread, ". . .public anger at a series of Wall Street scandals from Enron to WorldCom that has helped pushed down shares."
Recent SEC investigations (including Citigroup Inc.) add to stock market woes, making a market ...

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