The death of Osama Bin Laden, the most wanted man of our times, is met with joyous responses in the U.S. Sources say a U.S. intelligence operation led to the death of the 9/11 mastermind outside the capital of Pakistan. More specifically, however, the dollar advances, stocks rise, and the price of oil slides, placing a slew of positive responses to the accomplishment of a major goal of our nation.
As President Obama gives a speech with regard to the nation and the outlook for the future with such a major accomplishment, crowds gather outside the White House chanting “U.S.A.” and singing the national anthem. More news of this historical moment can be found at the LA Times. Just as the president makes his speech regarding Bin Laden’s death, the value of the dollar edges up while stocks rise by 0.9% and crude oil falls by 1.3%, presenting a more formidable future for the U.S.
Reasoning for the effect Bin Laden’s death has on the economy is a reduced risk of national security as stated by Mohamed El-Erian, Chief Executive Officer and Co-Chief Investment Officer at PIMCO. Additionally, the military bases around the world have been told to raise the security threat level, not to be confused with our national security threat level which is stable. Will we see long-term benefits, or will this just wear off with time?