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If there's another air incident, you can kiss commercial aviation goodbye and with it the travel industry.

I haven't seen your sources, but you are quite pesimistic. I don't see how the market could "anticipate" 9/11. The market has been overvalued and has been anticipating something that would lower stock prices. Is this what you meant? As for the travel industry, I don't see how it is coming back so soon. The fix to the industry in the form of tighter security, better people, better computer databases, cooperation between INS and FBI and other things like bomb screening that is 100 % are not in place and don't plan on being in place for years. We are safer primarily because of a few air marshals and the fact that a plane full of passengers will not tollerate a hijacking. But if there is another incident, our resolve will triple and our economy may well go on a full wartime level. I for one do not see us doing anything except coming out of the recession.

Simple matter. The Fed's post WWII formula of easier money and lower interest rates leads to higher stock prices and economic expansion. Not always on a strict exacting timetable but it always works period. Show me where it hasn't, except for pre 9/11. The only recorded instance where interest rates were continually cut over a one year period and the market kept tanking.

Show me where this pattern occured in the past. As far as comercial aviation, if there's another flight blown up by terrorists, I'd like to see you get your soccer mom into an airplane. Mine ain't going. It will be all but dead or comatose. Short of every person getting a full body cavity search commercial aviation will be dead.