US stock market's bullish reaction to the US Government's Terrorist Warnings By Richard A. Landkamer

Aljazeerah Info Center needs your support

Send donations by check to: Al-Jazeerah Info Center, P.O. Box 724, Dalton, GA 30722-0724, USA.

When the original events of 9/11/2001 occurred, the US stock market immediately crashed. But those events happened with no prior warnings being given to the public, so the US stock market could not have "discounted" those events. (I exclude those few "insiders" who sold short and bought puts.)

Now we have the US Bush Administration sounding like a clone of what people like Douglas Hagmann and his Northeast Intelligence Network at <http://www.homelandsecurityus.com/> have been alleging for the past few months. So how is the US stock market reacting to all of the US Government's recent terrorist warnings and specific threat information? Essentially it is reacting like it did at the start of the US invasion of Iraq back last March and April -- onward and upward! The DJIA remains firmly above 10,000. Significantly all of the US Government's terrorist warnings and specific threat information have generated no public selling pressure in the US stock market. Unlike the original events of 9/11/2001, this time the US stock market is being accorded every opportunity to "discount" events that the US Bush Administration now claims could "rival or exceed" the events of the original 9/11.

Are you as bewildered as I am about the US stock market's bullish reaction to all of the US Bush Administration's recent terrorist alerts and specific threat information ? So what happens if we really do have some new terrorist events that "rival or exceed" the original events of 9/11/2001? Will the US stock market then sell off, or crash, or has it already "discounted" the possibility or probability of these events happening? What do you think?

If the US stock market has already "discounted" terrorist events that "rival or exceed" the original events of 9/11/2001, and if any of these events actually occur, then I wonder if the Bushies and the "New Economy" perma bulls will react to a chemical or biological attack by claiming that it is very bullish for the US stock market because it stimulates and initiates "a new health care boom." Will these same people react to a "dirty" nuclear attack by claiming that it is also very bullish for the US stock market because it initiates "a new decontamination and reconstruction boom" and "a new insurance industry boom," in addition to "a new health care boom." (Presumably they will not use politically incorrect language like "a new funeral industry and graveyard boom.")

In the "New Economy" wars are apparently very bullish for the US stock market. Are we currently witnessing another paradigm of the "New Economy" in which "war boom action on the home front" (my euphemism for what the US Government is currently warning us might occur) is also very bullish for the US stock market? Maybe another paradigm of the "New Economy" is this rationale: Yes, there are problems on planet Earth, and the best way to protect your "investments" in this environment is to get your money off of planet Earth and into the US stock market. I guess this might be a corollary to New Econ 101 in which we were told that "earnings and profits are supposed to be irrelevant" in the "New Economy."

I confess that I am having a very difficult time trying to fathom the apparent rationale of the "New Economy." Back in the old economy of the 1970s and 1980s, if the US Government had publicly issued the type of terrorist warnings and specific threat information that it is issuing today, the public's immediate reaction would have been to buy some or all of what I call the 3 "Gs": gold, guns, and groceries - and if possible "head for the hills." The US stock market would have crashed. But things work totally different in today's "New Economy."

Am I in the extreme minority in perceiving that there is something totally unreal in how the US stock market has thus far reacted to all this? On the other hand, apparently I am not the only relic of the "Old Economy" who does not believe that the solution is to "invest" in bubbles, fantasies, and illusions, which must I confess is my perception of the "New Economy." I say this because concurrent with the current "New Economy" recovery boom of the US stock market is a new bull market in gold and other commodities. I doubt if the "New Economy" perma bulls are investing in gold and other commodities.

Still I must confess to being perplexed as to how the US stock market will react if we really have some new terrorist events that "rival or exceed" the original events of 9/11/2001? As I have discovered during the past few years, everything works totally different in today's "New Economy."