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Buttner Predicts Wall Street Rally on Monday

Reported by Judy - July 22, 2006 -

Fox News' business genius Brenda Buttner predicted Saturday (July 22, 2006) that Wall Street stocks will go up on Monday because "we're" doing so well in the Mideast.

In a special edition of "Cost of Freedom," Fox News did away with its separate "Bulls and Bears" and "Cavuto on Business" shows and devoted two full hours to the crisis along the Israeli-Lebanese border.

Cavuto, by the way, insisted there had been no real invasion of Lebanon by Israel yet, even though 2,000 troops in an armoured column has driven four miles into Lebanon. It probably felt like an invasion if you were in one of the villages where residents were told to leave, right before Israel bombed the bridges heading north and then bombed the oil refinery so that gasoline will not be available.

Nevertheless, Cavuto asked the "Bulls and Bears" regulars what will happen to stocks if an Israeli ground attack begins.

Buttner, host of "Bulls and Bears" predicted, "I think in the United States we will actually see a rally because Wall Street understands that this is a war on terror and Israel is fighting it, along with the United States. It's what we need to do. It's what we have to do, and we're doing it well." Well, we can pretty much cross Buttner off the list of objective reporters on Fox News after making a statement like that.

Tobin Smith, of Changewave Research, didn't say anything that made much sense, but he did agree with Cavuto that the market is driven by greed and fear, and that the market is driven by oil prices.

Gary B. Smith, of Exemplar Capital, said that Wall Street fears that the U.S. could get sucked into the war "either directly or indirectly, directly obviously would be the bigger concern." News Flash for Gary B.: The bombs and the planes dropping them on Lebanese civilians all say "Made in the U.S.A." and George Bush just rushed another shipment to Israel, so the U.S. is pretty much "indirectly" involved.

Smith said the market's second fear is that Hezbollah "is emboldened and there's an attack over here. That's my real fear, that's the fear of the market, and as this thing continues to escalate, I think that becomes more and more of an issue." He disagreed with Buttner's predictions, saying, "I cannot see the market go up in that situation."

Then Cavuto turned to the real star of the show, Mr. Brenda Buttner, aka Tom Adkins, who sells real estate, for his opinion on the Middle East. Mr. Buttner, whose experience in oil may extend to having pumped some into his car at one point or selling a gas station for a client, predicted that if oil prices go up, the Federal Reserve might raise rates to control inflation and that would be bad. Spoken like a true real estate agent.

Scott Bleier, of hybridinvestors.com, agreed that Buttner "makes an excellent point" and then proceeded to disagree with it. If the fighting escalates, the market will be more fearful and stocks will fall, he said. And if Israel "takes a hit" (Gee, hasn't it already been hit?), "the market takes a big hit. If Israel is successful in its moves toward ridding the world of Hezbollah, I think the market can rally and at least stay where it is, if not go up a little bit more." Bleier said. Pretty fancy double-talk. If the market rallies, it is not going to stay where it is. It will be going up.

Bleier also called the crisis "the second front in the war on terror." I thought that was the war in Iraq. If you add in Afghanistan, that makes three fronts in the war on terror, and as Hitler found out, even two fronts can be too many.

This so-called business block featured Bush's radio address and interviews with two Fox News military analysts, but to keep up the fiction that the show was somehow about business and not about egging on Israel to more attacks, Cavuto asked the crew of "Cavuto on Business" whether people should buy stocks on Monday.

Charles Payne, chief executive offier of wallstreet.com, naturally said people should buy. So did Mike Norman, of Bizradio Network. But Patricia Powell, of the Powell Financial Group, said that since the crisis could last all summer and spill over into shipping lanes, she was advising her clients to sit tight and not to buy or sell.

Too bad Cavuto couldn't round up Ben Stein and Jim Rogers. I think I know what they'd say. Buy gold. Stuff it in your mattress, and hunker down.