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         Daily Blog - Tiger Software

                            August 10, 2007

                   Bush Tells Investors
                    "Don't Worry." 
              "Trust Me" ... "I'm The Decider"

     William Schmidt,     - Tiger Software's Creator
      (C) 2007 William Schmidt, Ph. D.  - All Rights Reserved. 

      No reproductions of this blog or quoting from it
      without explicit written consent by its author is permitted.

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   wpe1.jpg (5017 bytes)  Bush Says Investors Should Not Worry  wpe5.jpg (10479 bytes)

           "WASHINGTON, Aug. 8 — President Bush, seeking to reassure
           Americans about the economy and combat Democratic criticism of
           his policies, said on Wednesday that recent financial market turbulence
           was not a cause for worry but a natural adjustment from the improvident
          lending of recent years.

            (I say, "Phooey!  Trust You Once, Shame on You... Trust You Anymore,
            Shame on Me".   Your Iraq war will cost 1 trillion dollars and more
            when all the bills come in.  That is the primary reason the US credit
            is over-extended! )  

           “I believe that markets ultimately look at the fundamentals of any
              economy,” Mr. Bush said. “And the fundamentals of our economy
              are strong. Inflation is down. Real wages are increasing. The job
              market is a strong job market. People are working. Small
              businesses are flourishing.” 

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                      Does The Market Now Decline When Bush Speaks?
               It did this in 2002.  My sense is his appearance now is damaging to the stock market.  His
              approval ratings are now just too low to give him much credibility.  His appearance now reminds
              investors of negatives.  If the market were rallying, he would just be ignored.
              His calls for tougher penalties for Wall Street criminals on 7/9/2007 has
              also had a negative effect.  The 2001-2002 decline owed much to Insider
              Trading allegations and convictions.  

              Here is a serious discussion of this phenomenon.
             http://dir.salon.com/story/politics/col/spinsanity/2002/07/27/markets/index.html
            http://www.spinsanity.org/post.html?2002_07_21_archive.html

==================================================================================  
                             Quote from  By Lawrence Kudlow     July 20, 2007

              It has been widely reported that President Bush simply refuses to turn against the surge in Iraq, or even
              compromise on it....  I have long believed that stock markets are the best barometer of the health, wealth
              and security of a nation.

                         Quote from VP Dick Cheney about what the US will do after the invasion of Iraq  
             "Well, I don't know, we haven't thought much about that." Fortune Magazine

                             Quote from Senate Majority Leader Harry Reid (D-Nev.).
             "It is laughable that a man who has turned record surpluses into record deficits would lecture anyone
              about proper investments for our nation."
                            


===================================================================
                      Recall what Conservatives Said in 2002. 

            Bush Foreign Policy and the Failing Stock Market  by Jon Basil Utley
                                 (Source:   http://antiwar.com/utley/?articleid=1632 )
             

Unending war, sacrificing free trade, breaking with Europe and telling allies to shove it,
spending his time on planning a new war, neglecting domestic issues, making America the enemy
of the whole Moslem world, disaffecting his Republican base, fumbling the battle against terrorism,
and more. No wonder the stock market is afraid. World prosperity is necessary for American prosperity and history teaches that wars always drive the market lower.

A former Reaganaut warns, "The way things are going, it will soon be the United States against the
world." That comment, by a top political leader in Kuala Lumpur, was just one of hundreds of
expressions of a new and disturbing alienation from America that I heard during a recent swing
through 14 Asian, European and Latin American capitals.

What a contrast to the supportive attitudes abroad immediately after Sept. 11! Then, the
sometimes anti-American French journal Le Monde captured the world's sentiment with a
headline proclaiming: "We are all Americans." Ten months later, sympathy for the victims of the
terror attacks remains. However, the American image is increasingly perceived as ugly, and
support abroad for U.S. policies is plummeting...

Moreover, columnist Paul Craig Roberts warns, "It is absurd for the Bush Administration to
spend so much time on Afghanistan, Palestine and Iraq when its position in the world rests
much more on its stock market than on its armaments….Today, Washington is focused on
wasting resources on wars…."

Fortune Magazine warns that the market is nervous about a Bush attack on Iraq, specifically
because there is no rational thinking or discussion in Washington about the consequences post-"victory".
For Bush's worldly advisor Dick Cheney that is nothing new. Twelve years ago, before the first
attack on Iraq he was asked, "What will we do after we win?" His answer –
"Well, I don't know, we haven't thought much about that." Well the stock market is thinking about it.
The unknowns include possible destruction of oil production, further alienation of other Muslims by
killing tens of thousands more Iraqis, possible overthrow of the Saudi government and other chaos.

The greatest threat is the collapsing consensus in Washington for free trade. Bush steel tariffs and
his complementary caving in to new agricultural subsidies are serious threats against international
trade. These policies weaken the pro free trade constituency. In response to these policies, Europeans
have threatened reprisal tariffs. Supply sider Jude Wanniski made his first mark as a young economist
researching how the stock market crash of 1929 came about the day after the coalition to block the
Smoot Hawley tariff fell apart in Congress. Interestingly, like today, in 1929 the newspapers failed
at first to recognize that the crash was for foreign policy reasons.
ess. Fortune Magazine foresaw that threat last October:


            
                    

          

        


                             


                 

  
       

     

   
     

         
    
        
      



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