Politics in Markets?

From John Mugarian's web site:

Here is an interview with Journalist Bob Woodward on April 18, 2004.

Woodward said;

"Prince Bandar enjoys easy access to the Oval Office. His family and the Bush family are close. And Woodward told 60 Minutes that Bandar has promised the president that Saudi Arabia will lower oil prices in the months before the election - to ensure the U.S. economy is strong on election day."

"Woodward says that Bandar understood that economic conditions were key before a presidential election: “They're [oil prices] high. And they could go down very quickly. That's the Saudi pledge. Certainly over the summer, or as we get closer to the election, they could increase production several million barrels a day and the price would drop significantly.�

Will we see the same happen as we approach the mid-term elections in November?

Posted by John Mugarian

Very interesting, and worrysome, DollarBill.

Bill, you commented about oil in another thread today: "What could save it of course is that oil prices are falling for reasons other than a slowing U.S. economy."

In specific regards to the above comment, if oil were to remain at or near the current levels till the elections, would the markets still drop significantly before the elections (in spite of possible low earnings)?

Thank you.

We are certainly trading/investing in interesting times. Oil, gasoline, coal, copper, interest rates, etc have done nothing but ramp up during the past three years and the markets tag along for the ride. Hurricane damage and stocks ramp. Iraq war goes from bad to worse and stocks don't respond. Terrorist bombings and stocks rally. High inflation levels have little impact on the markets. Slowing growth? The market doesn't seem to care when it's good for interest rates. It's been a teflon market and nothing seems to stick. We've heard more bear market calls in the past three months, yet the Dow is only three percent off all time highs. Right now, IMO, money is just rotating out of energy/metals and into about everthing else. The shorts are getting mauled in the process and options expiration week is just compounding the effect. I'm just trading what I see and not asking questions. Very short term trades at that.

Dollarbill,

This is new? IIRC, it was widely reported in the press back in 2004. Now go check and see how much the Saudi's contributed to the Clinton Presidental Library. The Saudi's don't play favorites, save for who rules the roost at any given time. Save the partisan BS for the partisan blogs, in case you need to be reminded, it's all about investment/financial matters here.

ALOHA !!

It is painfully obvious to consumers and investors over the past fifty years that neither of the two party aristocracy has their best interest at heart. To prove otherwise you would have to tell me why a decent car costs over $30k and I can't live off my savings ... If that's not financially related then tell me the Earth is flat again!

Politics is all about your financial future and the future of all markets, so don't let anyone tell you it does not matter. Even our Founding Fathers realized over 200 years ago that too much government is bad. I only wished they would have put a "separation between bank and state" in the Constitution like they did with religion. WAY TOO LATE NOW !!!

they could increase production several million barrels a day and the price would drop significantly.

Price determined by risk premium too
Manipulated by the Gnomes ?

Bill -

I emailed you Paul Krugman's column from today's NY times. He explains politicians'interest in Walmart as a signal that "we the people" are finally rising up against the growing economical inequality of the Bush tax cuts, etc. and that Walmart is the politicians' hook into this issue.

BTW, fellow readers, I think Krugman is THE (only?) columnist worth reading in the NY Times. You can get access if you buy the crosswords at $34/year.

Hey JB....you are the partisan....the post was to give
an explanation for why oil might go down here.
I had no idea anybody would take this article as
partisan....it was an economic analysis. Of course
saudi arabia helps the US ...whatever the administration...
we protect the kingdom and in exchange they price
their oil in dollars thats why the dollar is the world
reserve currency. And...Don't tell me what to post.
I don't post "partisan BS" you do.