America's Crisis Could Ease Fears of Recession

- September 14, 2001

Hamilton - A leading Canadian business intermediary says American determination to restore confidence and rebuild damaged cities following this week's terrorist attack may help to boost the stagnant economy in the United States and Canada.

"The attack's immediate impact on world markets was negative, and there was speculation that the crisis could precipitate a global recession or even depression," says Doug Robbins, president of Robbinex Inc. "This week's events were an unspeakable tragedy but we don't see that the economic impact will be long-term.

"The American resolve to demonstrate strength and confidence will mean rapid rebuilding," Mr. Robbins said. "Billions of dollars will be spent to replace the World Trade Centre and the buildings in its surrounding area, and to restore the Pentagon. Thousands of jobs will be available not just in construction but in communication systems, security and related areas. American defense spending will increase significantly, and coupled with all this rebuilding, there will be a positive ripple effect on the American economy and by extension, the Canadian economy."

Robbinex Inc. is Canada's largest and longest-serving business intermediary firm, specializing in selling medium- to large-sized private businesses.

"Because the state of the economy can affect what businesses are worth, those business owners who are contemplating selling may want to wait a few months for the economy to rebound," Mr. Robbins said. "By 2002, we could see a period of economic growth that would increase what the average business is worth.""

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