Financial panic is terrorism’s silent partner. When terrorists struck the World Trade Center in New York, financial markets immediately fell in panic, with stock prices plummeting everywhere as the prices for oil and gold soared. Many feared that, given the already precarious state of the US economy, the shock would send the world economy into recession. Yet, a scant two days later, European financial markets have seemingly stabilized. Deep global recession no longer seems a certainty. But business as usual still seems a long way off. The big unknown remains America’s response, for how it strikes back will have a profound impact.