The Air India disaster has left survivors and families reeling, and the British consulate has belatedly opened a mental health hotline. It is a typical government response: throw money at the symptom, ignore the cause. The real trauma here is not just psychological; it is the economic fallout.
Gilt yields are already pricing in the cost of compensation claims, and the pound is taking a hit. Capital flight is a distinct possibility as nervous investors look to safe havens. The market hates uncertainty, and this tragedy is a new source of it.
The hotline may patch up a few shattered minds, but it will not repair the balance sheets. Fiscal responsibility demands we focus on the bottom line: the cost of this accident, the potential for future ones, and the need for efficiency in aviation. Central banks will watch the data, but they cannot cushion this blow.
The City knows the true price of trauma: it is measured in volatility, not therapy sessions.
