Rick, ""Was it a deliberate attempt to mislead the American public, a deliberate attempt to fill them with the fear of terrorist mushroom clouds from Iraq?""
Most Americans believe what they first hear, especially when it comes from the President. Just look at poll numbers after every State of the Union speech. The numbers always rocket up the day after.
Bush and the current US equities markets look to be made of Teflon, all bad news just slips off.
Bush will win another term in office and most likely then will have to face the the really bad news from Iraq and Afghanistan. The only real question is can the US get out of those messes without serious and disastrous consequences. If we are lucky as a nation we will only be financially wounded. If we are unlucky we may find ourselves spiritually wounded as with the Vietnam fiasco and financially destroyed as well.