What Osama Bin Laden’s death means to U.S.

Dead Osama Pictures, Images and Photos
Late last night news outlets and the U.S. President announced that an elite American military team killed Osama Bin Laden and took the body. This news is very positive for the U.S. and indeed, the entire free world. Since it has been almost 10 years since 9/11 took place and many things have occurred since that time, not the least of which was a major recession, we almost forgot about the world’s most wanted terrorist. However, now that the U.S. has finally killed him there are some other positive outcomes that may take place as a result.

Firstly, this sense of optimism and American accomplishment may provide investors and businesses with confidence in the U.S. government. This can translate into stronger short term stock market performance (I wouldn’t be surprised to see the Dow close up on the day), as well as, renewed confidence that can lead to hiring, investment and consumer spending. I don’t know if this alone can usher in a faster pace of economic recovery because it isn’t really an economic story, but in the short term the national pride alone can give the U.S. economy a shot in the arm. This optimism can be shortened if the Arab world reacts negatively to this news which is possible and quite unpredictable so I would caution anyone before making business decisions like new stock purchases solely based on this news.

One other ironic consequence that Osama Bin Laden may have had on the United States is that he may be partially responsible for the re-election of two U.S. Presidents. When 9/11 happened one of the first things I said was that this just gave President Bush a second term. Now that President Obama killed Osama Bin Laden, it may have earned him a second term as well. This remains to be seen, but surely the President and his administration will receive a lot of praise for their work on this matter.

It will be interesting to see how the U.S. economy reacts to this news in the short and perhaps medium term.