Did You Notice: Markets Barely Reacted To Terrorism
Posted on July 5, 2007
Filed under On Terrorism And Mortgages
Read the complete post
Last week's terrorist attacks in England barely moved markets in a surprising change from past attacks worldwide.
Even as the country remains in "Criticial Alert" status, money is flowing to the U.K. on remarks from the Bank of England, and a foreshadowed interest rate increase.
In the past, terrorism was considered a threat to financial markets and one that created Safe Haven Buying. Right now, not so much. So, one of two things is happening:
- Markets have already priced in the threat of terrorist attacks on the nation
- Markets are unconcerned with threats and only concerned with real action and damage
Either way, the global non-reaction should change our perspective of how mortgage rates will respond if the United States faces a similar threat in the future.
Source
Country on highest alert after carnage averted
The Sydney Morning Herald
James Button
July 2, 2007, 6:29 A.M.
http://www.smh.com.au/news/world/britain-in-grip-of-terror/2007/07/02/1183228964665.html
Dan Green is an active loan officer. Reach Dan via email at or call toll-free to 877-DAN-GREEN.








