WASHINGTON, D.C. -- It is surely not a coincidence that the latest upleg in the bull market began at the exact
moment it became clear the House would vote to impeach President Clinton. The Chicken Littles had been saying that an impeachment vote would roil the markets and tank the economy. Instead, according to the latest
figures, Americans are so confident that they have been dipping into savings to spend money. This is not how
the world is supposed to work -- if you’re a liberal. Remember, the worst bear market since the Great
Depression coincided with the political crisis that saw Mr. Nixon airlifted from the South Lawn for the last time.

Markets are not supposed to like political uncertainty, so what gives? Maybe the impeachment crisis is
ironically providing the markets with an unusually high degree of political certainty after all. In 1974, the
market rightly worried that a weakened presidency and an emboldened Congress would lead to lots of bad
legislation. Remember the "veto-proof Congress" that was elected in 1974, and all the awful legislation that
was passed over President Ford’s futile vetoes?

Today, the market is accepting the conventional judgment that a Senate vote to remove Mr. Clinton from
office is highly unlikely, so that bit of uncertainty can be removed from calculations about the future. But,
say the worrywarts, "a Senate trial will tie up the Congress for months, preventing any legislation to fix
Social Security and health care and other problems." No wonder the market rallied on the impeachment news; the prospect of no legislation is the best kind of political certainty markets can have. As we’ve said
before in this space, "Do Nothing Congress" are three of the happiest words in the English vocabulary,
ranking right up along with "hosted bar."

So have a happy new year, but watch out for a market correction if a quick censure deal is struck that
permits the President and Congress "to get back to work for the American people." Come Groundhog Day, we’ll be rooting for the Park Service rodent to see its shadow, which will mean six more months of Monica.

Meanwhile, now that the Era of the Politics of Personal Destruction Is Over (or so we expect the Prez to
announce in the next State of the Union address), perhaps someone should clue in the Vice President.
Parson Gore explained on CNN’s "Jesse Jackson Show" over the weekend that Republican support for
impeachment derives not from any constitutional scruple, but from racism and bigotry. Quoth Parson
Gore,"President Clinton and I have been trying to bridge the historic divide that has come about because
of race and ethnicity in this country, and bring about some other changes -- lifting the poor -- that have
caused many to feel a little unsettled as old patterns begin to give way." The economic advance of the poor,
Gore said, "is leading many people to feel a little unsettled, especially those who have supported
different policies."

So there you have it. Never mind adultery: Henry Hyde wears Klan robes at home. Pass it on.

--By Steven Hayward