I may violate the prime directive here, but it is market related.
I believe the Axis of Evil stuff was a political ploy by the Bush people to extend the fear factor beyond OBL.
People were getting back to normal living without fear, and that hurts Bush's incredibly popular support. Once they get back to talking about domestic issues, his popularity could drop.
If Bush could extend the fear of the population into the fall, he could help the Republicans' chances in the elections.
After tipping their hand and basically saying exactly how they were going to go about getting Saddam, I doubt this administration will actually carry out its threat. They can't attack in the summer, and a buidup takes a very long time to deploy. The fact that there is almost no logistical and political support for this endeavor outside of Israel means it is a doomed plan. That is why it appears to me it is a purely political ploy that appears to have failed.
Anyway, without a pending attack on Iraq, the market may behave differently, especially defense stocks. Issues such as tax cuts, stimulus packages, and the like may also take on a new look. Furthermore, if the Dems get both chambers, we may see a stronger SEC and stronger accounting rules. |
