Financial system under attack in Mumbai?

By Thomas Lifson

Could there be another dimension to the terror attack in Mumbai? We know that a primary objective of the Al Qaeda attack on 9/11 was a hypothesized financial collapse of the American economy. Given the fact that Mumbai is a major financial center not only of India, but also the connecting node between India and the World financial system, could there be another dimension waiting to unfold?

Earlier this year, a suspected suicide bombing attack on the Bombay Stock Exchange was foiled. The attack yesterday has succeeded in closing the BSE, but it is expected to re-open, albeit with stocks and the rupee lower, as world confidence in India has been somewhat affected by the large scale attack. India's spectacular economic success in recent years is an implicit affront to the far less dynamic economy of its Muslim neighbor Pakistan, not the mention Bangladesh.

The horrific terror attacks in Mumbai so far are known to involve non-financial targets, like hotels, a restaurant, a railway station, and a gathering place for Jews. One must wonder if financial institutions may be targets of a later attack, in the vain hope of toppling the world financial system, already straining under a financial crisis.

Perhaps the attacks being handled right now are the extent of this wave of terror. But it is not unreasonable to wonder if other follow-up attacks are planned, with the world financial system a target.