War is the Health of the Stock Exchange

by | Apr 16, 2025

War is the Health of the Stock Exchange

by | Apr 16, 2025

krugman fed mad money printing

Some genius will be able to determine what percentage of Israeli “aid” packages essentially never leave the DC/VA corridor.

That handout of taxpayer funds to Israel coupled with Israel’s, and global, demand increasing for weapons in a period of instability, has been jet fuel for stock prices.

Lockheed Martin, the world’s largest weapons firm and the manufacturer of the F-35 aircraft that Israel uses in its regular bombings of Gaza, at the close of trading on October 4, has produced a 54.86% percent total return in the one year following the October 7th attacks, outperforming the S&P 500 by about 18%.

Or, put another way, a $10,000 investment in the F-35 manufacturer right before the October 7 attacks would, one year later, have produced a $5,486 total return. A similar investment in an S&P 500 index fund would have produced only $3,689.

“Hamas has created additional demand, we have this $106bn request from the president,” said TD Cowen’s Cai von Rumohr, during General Dynamics’ earnings call on October 25, 2023. In a question posed to General Dynamics executives on the call, von Rumohr asked, “Can you give us some general color in terms of areas where you think you could see incremental acceleration in demand?”

One year later, those analysts have been proven correct and Israel’s war grinds on as the White House finds its bids for ceasefires repeatedly rejected while, in seeming contradiction, supplying Israel with the weapons to continue fighting.

On September 26, the White House approved a $8.7 billion aid package for Israel that will largely be spent on munitions and armaments from major weapons firms, bringing the total U.S. security assistance to Israel since October 7 to nearly $18 billion. The same day, Israel, in defiance of the U.S., rejected a call for a ceasefire with Hezbollah, no doubt driving “incremental acceleration in demand” for weapons.

https://responsiblestatecraft.org/october-7-hamas-attack/

Bill Buppert

Bill Buppert

Bill Buppert is the host of Chasing Ghosts: An Irregular Warfare Podcast and a contributor over time to various liberty endeavors. He served in the military for nearly a quarter century and contractor tours after retirement on occasion and was a combat tourist in a number of neo-imperialist shit-pits around the world.

He can be found on twitter at @wbuppert and reached via email at cgpodcast@pm.me.

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