Analysts said that the assassination of Benazir Bhutto has set the United States back to square one in its quest for a stable and democratic Pakistan that can be a reliable partner in the fight against Islamic extremism. The potential consequences of her death include widespread riots by her supporters and the fear of Pakistan becoming a nuclear-armed, unstable Islamic state. Financial investors, who are already aware of Pakistan's political risks, believe that ongoing instability will increase the risk even further. Stephen Cohen from the Brookings Institution expressed concern over Bhutto's death, stating that it is a setback for the idea of a liberal and moderate Pakistan. He warned that the deterioration of Pakistan could have unpredictable and negative effects on its neighbors, Europe, and the United States. Cohen stated that the United States may not be able to take significant action at this point, as they had previously focused all their efforts on supporting President Musharraf and disregarded Benazir's requests for contact or recognition until recently. The US put in a lot of effort and resources to facilitate Benazir's return to Pakistan and negotiate a power-sharing arrangement with Musharraf. However, the situation now poses various challenges, including diminished prospects for a democratic transition and increased risk of terrorist attacks, according to South Asia expert Frederic Grare. Mainstream party leaders are also being targeted for assassination. He stated that this weakens the political parties and does not bode well for the restoration of democracy in Pakistan. U.S. President George W. Bush called on Pakistanis to honor Bhutto's memory by continuing the democratic process that she supported. Washington officials hope Pakistan will proceed with the planned elections on Jan. 8. Security analyst Anthony Cordesman noted that Bhutto's death has exacerbated an already unstable political situation in Pakistan. He emphasized the need for a unifying figure to promote political stability, rule of law, and reconciliation between Musharraf and the Pakistani people. Analysts cautioned that in a country known for conspiracy theories and intense politics, accusations would be made in all directions following the assassination, leading to potential violence fueled by grief and anger. Lisa Curtis of the Heritage Foundation emphasized the importance of maintaining peace in Pakistan, advising against the implementation of emergency rule by Musharraf. Some analysts also questioned Musharraf's ability to effectively combat terrorism, pointing out that if he couldn't protect a prominent politician in a relatively secure city, how could he handle the challenges posed by al-Qaeda and the Taliban in remote tribal areas. Win Thin, a senior currency strategist at Brown Brothers Harriman & Co, inquired about the security of Pakistan's nuclear arsenal during times of crisis. US officials maintained that there was no change in their assessment from the previous month, despite the turmoil caused by Musharraf's emergency rule. Cordesman from CSIS mentioned that Islamabad had received assistance from the US and studied other countries' policies to ensure the safety of its nuclear facilities. However, he questioned whether there was enough transparency for outsiders to confidently assess the security of Pakistan's nuclear weapons, warning that anyone making definitive statements on the matter risked discrediting themselves.