Transcript: Commentator Says Whitewater Affects Dow Jones Drop

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BOB EDWARDS, Host: Commentator Kevin Phillips says that the Whitewater controversy has had a definite impact on the Dow Jones, providing a useful reminder that the market is very sensitive to politics, and not just to inflation, interest rates, and what the Federal Reserve Board is doing with the money supply.

KEVIN PHILLIPS, Commentator: The politics and the stock market involves a lot more than what happens with Whitewater, although that could be particularly important. There's another critical context how domestic and international politics worked to prop up the stock market in the 1980s, but could work the other way in the 1990s.

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