The New Normal
Here's another indicator explaining why terrorism isn't being beaten by governments and armies alone but by billions of people adjusting their attitudes -- their attitudes to Islamism too, unfortunately -- and taking the offensive in myriad, swarming ways.
The Economist says that markets have learned how to incorporate the risk of terrorism into its traded values. "Each successive terrorist attack cause smaller and smaller shockwaves in the markets. The September 11th outrage in America had a huge effect; stockmarkets had to close. But share prices eventually recovered, with the help of effective central-bank action. Subsequent attacks, such as the bombings in Madrid, Bali and London, have been one-day market events."
Events in Iraq are no longer seen as a market-moving factor. Perhaps military action outside the Middle East, involving the two Koreas, India and Pakistan or even China and Taiwan, would be the kind of real shock that would turn investors into nervous ninnies overnight.