It will be interesting to see when indictment(s) is/are announced today and what effect, if any on the market. I'm thinking if it is only Libby, and a relatively tame charge, market could rally, or take back that part of the selloff that has occured on concern over the issue. On the other hand, if charges are more sweeping or open-ended, we could see some furhter weakness. My bet is market will rally a bit on an announcement. Now, if I only knew when that was coming ...
who ever heard of so many news releases preceding an alleged indictment? proof that it's all sizzle, no steak. Cheap pr tactic designed to smear political opponents and keep the public distracted from something else.
Uncertainty is discounted in prices - its a cost. Once the special prosecutor has his say (as it looks like he has) that risk premium is taken out. Any development that adds uncertainty has the same effect, more or less. We just got a nice, short pop once the news (just) broke that Rove, i.e. Bush's right hand, won't be indicted, right away anyway.