Zeev's Turnips Patch-No Politics (ZEEV)

[BobMcP]

Hello Zeev: Thank you for the detailed "road map" for 2005. I know your stance has been for some time that consumers are just about sated and that a consumer led recession may evolve next year.

A factor in the macro picture I have been pondering is capital spending. I'm not optimistic. We have the end of bonus depreciation in 2004 and a tightening of the expensing rules for heavy SUV's. And, given that our economy was never allowed to fully wring out the overcapacity and excesses of the 1990's, isn't it at least possible that at a time when the consumer gives up, business spending does as well? If so, we may be in for a fairly deep double-whammy recession.

Thanks again for your insight and the courage to go on record.

Bob McP