So a lot of people are upset with CNN for showing videos of bad guy snipers shooting American soldiers in Iraq. Lynne Cheney even chastised Wolf Blitzer on the air, calling it terrorist propaganda and asking if he even wanted the U.S. to win. Blitzer responded that it was not terrorist propaganda. Let's examine that point.

What is the purpose of something that is undoubtedly terrorist propaganda? To both strengthen the resolve and purpose of one group while disheartening the other group. Just like in sports, war can be all about the positive or negative mindset of the players, in this case the terrorists versus the American people.

In the stock market, there is a very important concept called equillibrium. What this basically means is that two different assets, or sets of assets, that give the same payout in the same circumstances are equal, and should be valued equally, as well. You could buy a stock, or you could buy a combination of a bond and a call option on that stock, and it should cost the same whichever you choose. If it doesn't, the market is not in equilibirum. Someone could buy the cheap asset and sell the overpriced asset, and make a killing. That's called arbitrage, and it wouldn't matter what the price of the stock does, the arbitrager would still be making the spread between the two unequal prices on equal assets for as long as the assets are out of equilibrium.

Actual terrorist propaganda and and what CNN showed have equal results, and thus should be valued the same. They are both propaganda that favors the enemies of the United States. Of course CNN could balance this by showing videos of Americans killing Iraqis, but that would be spun by them to make it seem like evil Americans shooting people. Heck, they wouldn't have to spin it, much of the Arab world would start rioting without any supporting voiceover from CNN.

CNN may be an international agency, but most of its decision makers are American citizens. Shame on them.