Monday, July 16, 2007

The Visible Hand

In a world where All Good Things must be attributed to The Leader, this is hardly surprising: Larry Kudlow at National Review's The Corner --

In fact, after the president admonished congress last Thursday to toss aside troop withdrawal timetables and to give General Petraeus’ new counter insurgency plan time to work, the Dow Jones soared 300 points on Thursday and Friday reaching new record highs.

One problem for this theory is that other stock markets worldwide reached record highs too. No problem --

My take here is that Mr. Bush’s steadfastness on the war late last week was well received by U.S. and global markets.

Apparently all those other pesky stock market determinants like profits and interest rates take 2nd place to whatever George Bush has just said. The financial news channel CNBC, which gives Kudlow an afternoon show, would be well-advised to let him accept an inevitable offer from the Fox News business channel as quickly as possible, where his style of analysis will be par for the course.

UPDATE 19 July: Kudlow's interest in attributing the market boom to Bush may have direct input from the latter (via Dan Froomkin) --

[Mike Allen ...] "Bush held a long, casual session with nine influential conservative columnists last Friday. The meeting -- peppered with mutual compliments -- has produced a torrent of laudatory coverage from formerly friendly commentators who had turned skeptical and even hostile on some issues.

"People familiar with that session -- also held in the Roosevelt Room -- say it was jocular, with Bush going off the record at several points to give unvarnished views on foreign affairs. He called on William Kristol of The Weekly Standard and Time magazine as 'Billy' and opened the floor to Lawrence Kudlow of CNBC and the National Review by asking, 'Kuds, how about the market today?'

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