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New Fox Line: Wall Street Wants Dems to Win

Reported by Judy - October 21, 2006 -

The hand-writing on the wall regarding the mid-term elections must be clear enough for even some Fox News personnel to read. Fox News' Brenda Buttner posed the following "question" to her "Bulls and Bears" crew on Saturday (October 21, 2006): "Historic Rally for the Dow. But would it be even better if the Dems swept the midterm elections? Why some say that's exactly what Wall Street wants."

Buttner went on to explain that if the Democrats win both houses of Congress and "split government, will that paralyze Washington, D.C. and is that exactly what Wall Street wants?"

Gee, week after week, Buttner has told us with her propaganda thinly disguised as "questions" that Wall Street wants whatever George Bush wants, that Wall Street wants the U.S. to stay in Iraq forever, that Wall Street wants the U.S. to do something about Iran, and on and on.

This week, though, Wall Street wants paralysis. Well, we've pretty much had that recently. What exactly has this Congress accomplished, other than restrict Americans' rights to habeas corpus and decide to build a wall that can keep us in as much as keep others out?

Nevertheless, her crew of buddies indulged Buttner and mostly agreed with her.

"Yeah, it's exactly what Wall Street wants," said Gary B. Smith, of Exemplar Capital. "Government is too big and it's getting bigger. There'd be nothing that Wall Street would like better than paralysis. No legislation, no bridges to nowhere, no bloated stuff. That leaves the money in our pockets to spend. It's good for the economy. It's good for Wall Street. I pray that there's a split house."

Tracy Byrnes, a writer for Rupert Murdoch's New York Post, disagreed. "I don’t get it. Dow 12,000. No terrorist attacks in 5 years. How could they want change? What’s bad? Don’t tell me you’re not making money hand over fist."

In a rare admission of the reality of the stock market amid the Fox News hype about Dow records, Smith responded. "We were at 11,800 just like 5-6 years ago. We moved all of 200 points." Buttner immediately cut him off.

Tobin Smith, of Changewave Research, said the assumption of Democratic power is likely to have little effect since George Bush can veto anything he doesn't like. More serious problems for Wall Street could come in two years with a Democratic Congress and president, he warned, because that could threaten the Bush tax cuts.

Lenny Dykstra, a former major league baseball pitcher who was on the show so that Buttner could use all sports of baseball analogies with the start of the World Series tonight, did see bad things in a Democratic take over. "All this does, it adds uncertainly to an already overvalued and overbought stock market," said Dykstra, who in a previous appearance on the show had forecast a 500-point drop in the Dow before Labor Day. Oops.

Pat Dorsey, of morningstar.com, hoped that whichever party comes out on top, it does something to rein in spending. "The one thing this Congress has been able to do very well is spend money, I don’t really care who wins in the midterms as long as they stop spending like drunken sailors. If it takes Democrats and a paralyzed government to do that, great. If Republicans wake up, smell the cofree and realize that we’re spending way beyond our means, that’s fine too, but the deficit’s got to come down because it’s unsustainable," he said.

Sorry Dorsey, but that is going to be hard to achieve with the billions spent each month in Iraq. Nevertheless, Buttner's premise presumes that bipartisan cooperation is impossible in Washington, that there is no middle ground, no common interests that can be found. Bush will be a lame duck and will have no incentive to compromise, unless he wants to salvage something from a presidency that historians likely will judge as one of the worst ever.

So after telling us that Wall Street wants the Democrats to win, what does Buttner do next week? Annoint Senator Clinton as Wall Street's candidate for president in 2008?