The Week ahead

Another Crucial Week

The news from earnings, the economy and business is good. The news from politics is bad. Which way will the market go. That might depend on India.

There is not enough compelling economic data to lift the markets to breakout highs. The markets have done pretty well the past two weeks, and good news on the business spending front needs backup. The principle danger to the markets is a possible Indian retaliatory strike against terrorists.

What frightens the markets is the prospect of escalation to nuclear war. This unlikely event would result in a short term collapse of the financial markets. The fear and uncertainty concerning it will restrain the markets until the situation is resolved.

Add in the continued threat of terrorism in the U.S. and Donald Rumsfeld predicting that terrorists will obtain and use nuclear weapons, and you might think its time to go live in a cave. Let me quote you my recent correspondence with President Bush on that matter (no, he didn’t answer).

Start of Letter,,,,

Dear Mr. Bush,

Mr. Rumsfeld, secretary of defense remarked today that terrorists will get nuclear weapons from the states mentioned in your Axis of Evil State of the Union speech. Such remarks raise fear unreasonably and hurt the financial markets and the economy. I am certain you do not want that.

This remark is simply unacceptable. It is the job of the President of the United States and his officers to prevent that situation, even if it means all out war against those states. I expect this administration to take action to deprive the states of Iraq, Iran and North Korea of the capability of delivering nuclear weapons to terrorists.

I can hardly be more clear than that. As a life long Democrat and member of the Chicago Democratic organization, I will stand up and campaign for the administration that protects me and my children. We have learned the hard lesson of what happens when we elect a president with no foreign policy credentials(re the 8 years Clinton let bin Laden stay alive).

As a loyal citizen of this country I urge you to take the necessary steps to prevent Mr. Rumsfeld's prophecy from becoming reality. A stern conversation with the Secretary wouldn't be a bad idea either

Signed by me….

What is the point here? A little responsibility from the Administration wouldn’t hurt the markets either.

To see our past issues, click here.
Last weeks column.

For our front page, click here.

Shmuel Protter
investmenttool.com