Fears of recession raised after attack

Fears of recession surfaced today as investors, struggling through the aftermath of a devastating attack on the United States…

Fears of recession surfaced today as investors, struggling through the aftermath of a devastating attack on the United States, attempted to decipher its meaning for an already faltering economy.

"I think we have certified for all practical purposes a recession as a result of this with the market being as fragile as it is," said Mr Stanley Nabi, a managing director at Credit Suisse Asset Management, which oversees about $110 billion.

"It will be awful tomorrow," Nabi said, predicting a dismal day on Wall Street if markets should open tomorrow.

"There are two reasons. The first is psychological. Obviously, this is a blow. The second is fundamental. This will mean the slowdown will accelerate into a recession of some substance."

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"I think this is a blow to consumer confidence that will cause the consumer to say, 'This is not the time to spend,' Mr Nabi said, explaining the economy would slow further as consumers kept their wallets shut.

"One thing we have to keep in mind is whether this is going to cause a war, an all out war," Mr Nabi said.

"I doubt the Western countries are going to say, 'Well, this is the work of fanatics.' Mr Nabi said.

"They are going to have to come to the conclusion that this is something that is organised, sanctioned, blessed by whatever you want to call it." He added.