The "market" is always right

Conservatives are willing to ignore all the bad news and depressing statistics from Iraq and accept the trumped up figures that Bush and Petraeus has served up to them, but to a REAL conservative, the true test is always the market. As Kevin Drum tells us, Mark Thoma at the NBER has done some research on the market for Iraqi bonds and finds that they're tanking in the midst of the surge. Now, even REAL conservatives may start to get it.

[As an aside, I always find it rather strange that conservatives place so much faith in the "market" but most (just watch CNBC for awhile) believe strongly that an actively-managed portfolio will produce superior investment returns relative to a well-diversified buy and hold strategy (e.g., an index fund), a belief which essentially denies the efficiency of the markets].