Mega-terror threats add to market woes:Worldwide financial contraction would be aggravated by attack

A balloon of no-money-down home loans and easy credit for corporate buyouts, followed by the perfect storm of inflation and declining home values, has set the stage for what economic experts believe could end up a literal "meltdown" in the global economy.It's the result of a combination of factors, but some warn that as bad as it is-Wall Street has lost about 10 percent of its value in the past few weeks-it would undoubtedly be aggravated by a major terrorist attack, which would create tremors felt by millions."We've never had a crisis like this while we're at war," said Craig R. Smith, president of Swiss America Trading, and an expert on financial issues including tangible assets."Homeland Security is warning [about the potential] over the next two to three weeks of another terrorist attack," he said. "If we are hit with terrorism, it would send these markets into a tailspin.
Consumers already are nervous and fearful that they're going to lose their homes, that their 401k [retirement fund] will be chopped in half." "Osama bin Laden knows how delicate the system is," he added. "If there was a small dirty bomb attack, or a homegrown cell attack, we would have a meltdown on Wall Street," he said.A new warning from the Stratfor terrorism intelligence report echoes Smith's concerns about an impending attack."One of the reasons for the heightened concern,"the report said, "is that most everyone...is surprised that no major jihadist attack has occurred on U.S. soil since 9/11. Many plots have been disrupted, and it is only a matter of time before one of them succeeds.Simply put, attacks are not difficult to conduct and the government cannot stop them all."The organization said it believes al-Qaida retains its ability to conduct "tactical strikes" but probably cannot pose a "strategic threat."
"While this may be reassuring on one level, people can and will be killed in a tactical strike.The fact that an attack is not strategically significant will provide no immediate solace to those near the carnage and confusion of a tactical attack," the service said.Such an incident could prompt a 2,000-point drop, Smith suggested.
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