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By that time, at least 10 of the passengers had talked to loved ones via cell phone. They heard about the World Trade Tower attacks and figured out their likely fate.
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At , the brave passengers attacked the terrorists. Flight 93 crashed into a field in Shanksville, Pennsylvania at a. Ten minutes later, the FAA shut down all U. The Federal Reserve dropped the fed funds rate half a point to 3. The Dow promptly fell 7.
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The Stock prices recovered that loss by October. Although oil prices decline in the fall, this was a sharper decline than usual. Another cause was the dollar's value which rose sharply between August and December.
Investors perceive the U. Send oil contracts are priced in dollars, oil exporters can lower oil prices when the dollar strengthens. Passengers were afraid of flying for at least a year. As a result, 1, planes were parked during that time, and thousands of workers were furloughed. The economy had contracted 1. The attacks made the economy contract 1. Growth returned to 1. Although the recession ended in November , the threats of war drove the Dow down for another year. It hit bottom on October 9, , when it closed at 7, That was a That was the peak for that recession.
On March 21, , President Bush sent troops into Iraq.
He said the Central Intelligence Agency had found weapons of mass destruction. He added that Iraq's leader, Saddam Hussein, was aiding al-Qaeda operatives. The costs for both wars kept mounting. But it's much better than the actual percent level.