Dow continues downward spiral

As I write this, the Dow is hovering just above the 9,000 mark, further reinforcing the notion that Bush's speech was a disaster. Meant to reassure investors, Bush accomplished the exact opposite. Investors saw his calls for industry self-regulation as inadequate, and punished the markets (and Bush by extension) as a result.

Bush's insistance that the crisis was caused by a few crooked CEOs bellies the fact that the whole system is corrupt, and in need of serious reform. Rove must be beside himself right now. This isn't a matter of spin. You can't laud a speech, and claim the reforms will be successful, if the target audience repudiates you in such dramatic fashion.

And, as the Dow declines, companies will be more reluctant to spend on capital improvements or higher and larger payrolls, further entrenching the current recession. All roads to economic recovery start at Wall Street, and with a weakening housing market, and the Dow in the 8,000s, things could get nasty for the GOP.

Judicial Watch, the big thorn on the Clinton Administration's side, has probably become an even bigger thorn on the Bush Administration's side. They announced an accounting fraud lawsuit against Halliburton and Cheney. From a legal standpoint, this isn't that big of a deal. I count over 20 such lawsuits filed thus far. They will all get consolidated, including Judicial Watch's effort. However, the filing is significant because Judicial Watch gets media attention. Those other lawsuits were filed in near anonymity, while Judicial Watch's gets top-of-the-fold attention.

But the biggest treat this morning was Maureen Dowd's latest column. She just gets better and better:

Can a Bush — born on third base but thinking he hit a triple — ever really understand the problems of the guys in the bleachers?

Posted July 10, 2002 08:40 AM | Comments (1)