We’re definitely in bear territory now, and not the furry kind either. The Dow just keeps sinking.

The stock market’s pullback, which accelerated in the final hours of the week’s last full trading session, left the Dow Jones industrial average officially in bear market territory, with the blue chips having fallen more than 20 percent from their October highs.

…The Dow fell 166.75, or 1.46 percent, to 11,215.51, the lowest close since August 2006. It now stands 20.82 percent below its Oct. 9, 2007 record of 14,164.53. The last bear market ended in October 2002.

And oil just keeps rising, what with the tension between Israel and Iran, no surprise either.

Crude oil hit a record $144.32 a barrel in after-hours trading after reaching a record settlement of $143.57, an advance of $2.60 on the New York Mercantile Exchange. The Energy Department reported Wednesday that U.S. crude oil supplies fell more than expected last week.

It’ll only get worse. With retirement not that many years off, things are looking rather bleak. I don’t like it very much.

I’ll like it even less if Obama gets elected and raises my taxes.

Let me get this straight, we won’t attack Iran cause it would burden our taxpayers and Israel won’t attack Iran cause it’s government is imploding but Iran will close the Strait of Hormuz if attacked (as reported yesterday on FoxNews). Iran’s foreign minister, Manouchehr Mottaki, said (as reported by the AP) about being attacked:

“We do not foresee such a possibility at the moment. The Israeli government is facing a political breakdown within itself and within the region, so we do not foresee such a possibility for that regime to resort to such craziness,” he said. “The United States, too, is not in a position where it can engage in, take another risk in the region.

“Of course, there are people in the United States who are interested in that. But we think that the rational thinkers in the United States will prevent from that action being taken, and will prevent the imposition of another adventuresome act that would put pressure on the American taxpayers.”

So they feel free to pursue their nuclear program with blatant disregard for any perceived consequences. There are none in their opinion. And of course, they threatened to retaliate were the U.S. or Israel be so foolish as to attack Iran.

In Madrid, Iran’s oil minister warned Wednesday that an attack on his country would provoke a fierce response “that nobody can imagine.” Minister Gholam Hossein Nozari said, however, that Tehran would not cut oil deliveries and would continue supplying the market even if struck by Israel or the United States.

I suppose that remark was to calm the oil markets after they threatened to close the Strait of Hormuz, an action that would double the cost of oil and gasoline. And our response to said threatened closure of the Strait of Hormuz was it’s not happening.

A senior U.S. military commander said Wednesday that Washington would not permit Iran to choke off the Strait of Hormuz.

I suppose that too was to calm the oil markets. Which I doubt will be overly placated as reports filter in that they have a year before Iran has the capability to build the bomb. So Israel has to be thinking of doing something about those nuclear facilities. Track record, it has in the past even with Olmert in charge. I expect things to get interesting.

Mind you timing is everything. IMHO if Obama gets elected, expect no help from the U.S. if Israel should duke it out with Iran. So providing he wins, any action after election day would be a wasted effort. It just won’t happen. Iran will get their nukes. If the Middle East should implode before election day, McCain might stand a chance of getting elected if only to keep the cost of oil from going thru the roof. Why we might even realize there is a problem here and need a commander in chief that knows how to lead. You know, someone with actual experience here. I’m not getting my hopes up thou.