Wednesday, March 28, 2007

Nothing Rallies the People Around an Unpopular President...

Well worth remembering:

Barry Ritholz at The Big Picture

We even noted on Monday that Oil and Gas had ticked up in price, with premium (high test) selling for more than $3 and Oil tickiling $64. That obviously didn't concern Mr. Market last week, nor did the Fed's evident concern with the decaying economy and creeping Real Estate problems.

Now, it appears that glimmers of recognition of all that risk is returning, courtesy of Iran's capture of 15 British sailors and marines. Last night, Oil spiked $5, "rumors that Iran fired on U.S. Navy warships." Other rumors of an immiment Iran attack by the Brits aided by the U.S. were reported.

With a little luck, this situation gets resolved with no shots fired, but I suspect that may not suit the unpopular President of Iran, Mahmoud Ahmadinejad -- nothing rallies the populace around an unpopular president like an attack on the nation from abroad.

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