Nir - Sure, terrorism can effect short term physical damage (and long-term emotional damage). But Yoda's point is that it hasn't succeeded in bringing any society to its knees. The rate of recovery after terror attacks is very fast. And yes, things were horrible in 2002 - partly because of the terror attacks. But there was a global economic crash that year, remember? Israel's economic boom was pretty much based on high tech starting from the mid-1990s, so it was very hard hit by the effects of the 2000 tech stocks crash. The terror attacks just exacerbated the effects of the economic crash.