Posted on 01/15/2007 6:59:20 AM PST by shrinkermd
Amidst all the pessimism about the American strategy-shift in Iraq, world financial markets seem to be voting for President Bush and his plan — not against. On the days immediately preceding the president's speech, as its contents were leaking out, oil prices were plunging and stock prices were rising. And right after the speech, when the contents of the Iraq plan were clear, guess what? Oil prices continued to fall and share prices hit record highs.
...Of course, there are a lot of factors driving these markets. Corporate profits are strong. Productivity is high. Inflation and interest rates are low. And the threat of recession is nil. All this is good for stocks
...But Mr. Bush's overhauled Iraq strategy, including a tougher line on Iran, is being viewed by investors as a plus for security in the Middle East. Two large aircraft carrier groups and 16,000 sailors have been positioned in the Persian Gulf. There also are indications that America will provide Patriot anti-missile defense systems to allies in the region. So, putting all this together, geopolitical risk premiums are actually declining — hence lower oil prices.
(Excerpt) Read more at nysun.com ...
I wish Bush himself could articulate this aspect of the situation. I saw him interviewed last night and there were so so many missed opportunities. On the whole, I think he did very well. But there were no home runs. He didn't smack any out of the park. And he could have, especially if he'd brought in the economics of the situation, which is good on the ground in Iraq and good in the world as a whole.
He's not going to do that. While we are at war, this president will play everything close to his vest, even if it hurts him.
Proof of your point is what has been published in the newspapers since the President's speech last Wednesday. Actually, there has been no bad news from Iraq. This puzzles me since either there is no bad news or the MSM has quit reporting it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.