Thursday, July 07, 2005


The bombs in London are not a pleasant matter but the market has taken them in stride. The resolve to stop this evil will grow. It is sad to talk about this in terms of economics rather than in terms of the life of humans, but the economics will be the catalyst for change. The economy of every country in the world is hurt by these actions. It makes sense for countries from Saudia Arabia to South Africa to support a crack-down on terrorism.

In recent months, it has been as if America was alone in fighting the terrorist. Yes, Britain and other countries have troops in Iraq, but even the American public has been losing its resolve. Support around the world will grow for stronger police action.

Airlines were the hardest hit stock group this morning but even these stocks are well above their winter lows. The decline is moderate. The oil price dropped off a little because the economies of the world will not grow as fast as long as the treat exist.

When I started writing this the market was holding but down sharpley. I was interrupted and came back two hours later to find the market is about to break even.