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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jack T. Pearson who wrote (40226)	1/7/2001 5:21:01 PM
From: patron_anejo_por_favor	Respond to of 42787

<<Bush ordered the cut?! Bull.>> Jack, I agree that it's bull. This "theory" got started by Abelson's column in Barron's. It was tongue-in-cheek, and not meant to be taken as strictly factual reporting, IMO. Here's the pertinent passage (note the word conceivably placed before the description of the offending passage. interactive.wsj.com Although his innate courtliness and good nature would in any case have prompted Mr. Greenspan's welcoming gesture, conceivably he was also influenced a tiny bit by an unannounced visit from three strangers who introduced themselves as Killer Cheney, Ax Ashcroft and Bruiser O'Neill and who, without much ado, suggested it was cut or be cut. Gracious as always, Mr. Greenspan acceded to the subtle hint, and, just like that, a weight was lifted from the world, and, even more impressive, the Dow was up 300 points, while Nasdaq vaulted to its biggest gain ever. When the three mysterious and menacing visitors reported back to the Boss-elect, he greeted their news more than a mite churlishly, observing he was banking on a recession and a bummed-out market to get those dunderhead congressmen to agree to his tax cut. That was the cut he was talking about, dummies. Bruiser timorously reminded him that to err is human, to forgive is divine. But the Boss-elect told him to stop talking like Jimmy Carter. Killer weighed in with the soothing suggestion that the Fed's move, so unexpected and unambiguous, could yet be turned to their advantage. Everyone knows, he explained, Alan Greenspan is one cautious dude, so we can pounce on the fact that he acted so decisively as clear evidence that the economy's really in the soup and desperately needs a tax cut. The trembling trio waited breathlessly as the Boss-elect mulled the idea. Actually, they had to wait quite awhile. Then, the Boss's stern visage gradually crinkled into a sort of smile. "Yeah," he said softly. In truth, Killer was on to something. For what was noteworthy about the rate reduction was not so much what was done but how it was done. The half-point chop was a given. And even that the move came several weeks ahead of the Fed's next scheduled meeting was not entirely unanticipated. But to do it in the middle of a market session, as Barton Biggs observed to us, was a rarity of rarities that, in Barton's recollection, happened only once before: during the Big Crash of '87.