Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

AG's brilliant move!

Got to hand it to AG. He got Wall Street off his back with 50BPS, nobody can complain now.

From my angle, all lights are on Bush and the Republican Congress. Can they perform? Bound to cut taxes but will it help? I doubt it. They'll do the foolish thing and try to cut taxes on the rich to revive investment and capital spending when factory capacity is falling, and nobody needs capital at all. Instead we should cut taxes on the lower and middle classes with families who would immediately spend it and pump up demand (which is the problem). I fear BUSH will feed his base and give them the RX from hell.

If the economy tanks from here on in, its all their fault. They better get moving, the expectations are high as hell! The Democrats can sit back and watch now. If the layoffs are piled on high, and poor people are thrown out on the streets with no unemployment benefits, expect them to go back to their base in 2004.

Smooth move by AG, though. What's more AG can continue to run his secret tightening campaign and screw Bush. Lets continue to watch money growth rather than rates to see what really gives. Next few days should tell the story on the morning repo's and coupon passes. No change? A dribble, dribble, dribble?

Look, its not a secret the BUSH family and Greenspan have big animosity going back to Bush Sr's. relection campaign term when Greenspan tightened and the economy tanked, and BUSH got beat.

For the time being, the heat is off SIR ALAN!

Smooth move!