SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?


To: lurqer who wrote (21847)7/11/2003 10:53:10 AM
From: stockman_scott  Read Replies (3) | Respond to of 89467
 
Mr. Bush, You Are A Liar

________________________________

By William Rivers Pitt
t r u t h o u t | Perspective
Friday 11 July 2003
truthout.org

There was a picture on the front page of the New York Times on Tuesday, July 8. It showed several American soldiers in Iraq sitting in utter dejection as they were informed by their battalion commander that none of them were going home anytime soon, and no one knew exactly when they were going home at all. PFC Harrison Grimes sat in the center of this photo with his chin in his hand, staring at ground that was thousands of miles from his family and friends. A soldier caught in the picture just over PFC Grimes' shoulder had a look on his face that could break rocks.

212 of PFC Grimes' fellow soldiers have died in Iraq, and 1,044 more have been wounded. The war created chaos in the cities, and it seems clear now that very little in the way of preparation was made to address the fact that invasion leads to social bedlam, not to mention a lot of shooting. Last Sunday, CNN's Judy Woodruff showed a clip of a Sergeant Charles Pollard, who said, "All we are here is potential people to be killed and sitting ducks."

According to the numbers, almost two thirds of the soldiers killed in Iraq since May 1 died in "non-combat related" mishaps like accidental weapons discharges, accidental detonations of unexploded ordnance, and questionable car crashes. There are some in the world who might take comfort from the fact that only one third of the dead since May came from snipers or bombs or rocket-propelled grenades. Dead is dead, however. There is no comforting them.

A significant portion of the dead and wounded came after Bush performed his triumphant swagger across the deck of an aircraft carrier that was parked just outside San Diego bay. Those dead and wounded came because the Bush administration's shoddy planning for this whole event left the troopers on the firing line wide open to the slow and debilitating bloodletting they have endured. A significant portion of the dead and wounded came after Bush stuck his beady chin out on national television and said, "Bring 'em on!"

When a leader sends troops out into the field of battle, they become his responsibility. When his war planning is revealed to be profoundly faulty, flawed in ways that are getting men killed, he should not stick his banty rooster chest out to the cameras and speak with the hollow bravado of a man who knows he is several time zones away from the violence and bloodshed.

Such behavior is demonstrably criminal from a moral standpoint. The events that led to this reprehensible display were criminal in a far more literal sense.

Bush and the White House told the American people over and over again that Iraq was in possession of vast stockpiles of chemical, biological and nuclear weapons. Bush and the White House said over and over again that this was a direct threat to the United States. Bush and the White House told the American people over and over again that Iraq was directly connected to al Qaeda terrorism, and would hand those terrible weapons over to the terrorists the first chance they got. Bush and the White House told Congress the same thing. Very deliberately, Bush and the White House tied a war in Iraq to the attack of September 11.

It was all a lie. All of it.

When George W. Bush delivered his constitutionally-mandated State of the Union Address in January 2003, he stated flatly that Iraq was attempting to develop a nuclear weapons program. "The British government has learned," said Bush in his speech, "that Saddam Hussein recently sought significant quantities of uranium in Africa." He delivered this proclamation on the basis of intelligence reports which claimed that Iraq was attempting to procure uranium from the African nation of Niger.

Vice President Cheney got the Niger ball rolling in a speech delivered August 26, 2002 when he said Saddam Hussein had "resumed his effort to acquire nuclear weapons." As the data clearly shows, Mr. Cheney was a central player in the promulgation of the claim that Iraq was grubbing for uranium in Africa. This statement was the opening salvo.

CIA Director George Tenet made this same claim in a briefing to the Senate Intelligence Committee on September 24, 2002. This briefing was the deciding factor for a number of Senatorial fence-sitters unsure about voting for war. Bush, in a speech delivered on the eve of the Congressional vote for war on Iraq, referenced the Niger uranium claims again when he raised the specter of a "mushroom cloud" just three sentences after evoking "The horror of September 11."

That sealed the deal. Congress voted for war, and a clear majority of the people supported the President.

In the last week, a blizzard of revelations from high-ranking members of the intelligence community has turned these Bush administration claims inside out. It began with a New York Times editorial by Joseph Wilson, former US ambassador to several African nations. Wilson was dispatched in February of 2002 at the behest of Dick Cheney to investigate the veracity of the Niger evidence. Wilson spent eight days digging through the data, and concluded that the evidence was completely worthless. The documents in question which purportedly indicated Iraqi attempts to purchase uranium were crude forgeries.

Upon his return in February of 2002, Ambassador Wilson reported back to the people who sent him on his errand. According to his editorial, the CIA, the State Department, the National Security Council and the Vice President's office were all informed that the Niger documents were forged. "That information was erroneous, and they knew about it well ahead of both the publication of the British white paper and the president's State of the Union address," said Wilson in a 'Meet the Press' interview last Sunday.

"I have little choice but to conclude that some of the intelligence related to Iraq's nuclear weapons program was twisted to exaggerate the Iraqi threat," Wilson wrote in his Times editorial. "A legitimate argument can be made that we went to war under false pretenses." He elaborated further in a Washington Post interview, saying, "It really comes down to the administration misrepresenting the facts on an issue that was a fundamental justification for going to war. It begs the question, what else are they lying about?"

Ambassador Wilson's claims are not easily dismissed. Wilson is a 23-year veteran of the foreign service who was the top diplomat in Baghdad before the first Gulf War. In 1990, he was lauded by the first President Bush for his work. "What you are doing day in and day out under the most trying conditions is truly inspiring," cabled Bush Sr. "Keep fighting the good fight."

A great hue and cry has been raised as to the timing of the data delivery to the policy-makers. Don Rumsfeld and Condoleezza Rice have both claimed they knew nothing of the forged Niger evidence, claiming the information was buried in the "bowels" of the intelligence services. Vice President Cheney's office has made similar demurrals. Obviously, the administration is attempting to scapegoat the CIA.

Given the nature of Wilson's claims, and given who he is, and given the fact that he was sent to Niger at the behest of Dick Cheney, it is absurd to believe the administration was never given the data they specifically asked for over a year before the war began, and eleven months before Bush's fateful State of the Union Address.

27-year CIA veteran Ray McGovern, writing in a recent editorial, described a conversation he had with a senior official who recently served at the National Security Council. "The fact that Cheney's office had originally asked that the Iraq-Niger report be checked out," said the official, "makes it inconceivable that his office would not have been informed of the results."

Wilson is not alone. Greg Thielmann served as Director of the State Department's Bureau of Intelligence and Research until his retirement in September. Mr. Thielmann has come forward recently to join Ambassador Wilson in denouncing the Bush administration's justifications for war in Iraq.

"I believe the Bush administration did not provide an accurate picture to the American people of the military threat posed by Iraq," said Thielmann on Wednesday. During his press conference, Mr. Thielmann said that, as of the commencement of military operations in March of 2003, "Iraq posed no imminent threat to either its neighbors or to the United States". Mr. Thielmann also dismissed the oft-repeated claims of a connection between Iraq and al Qaeda. "This administration has had a faith-based intelligence attitude," he said.

Thielmann could have saved his breath, and Wilson could have saved himself a trip, if the Bush administration had bothered to pay any attention to the International Atomic Energy Agency. The IAEA's chief spokesman, Mark Gwozdecky, said on September 26, 2002 that no such evidence existed to support claims of a nascent Iraqi nuclear program.

White House spokesman Ari Fleischer on July 8 stood before the press corps and said the President's statements during the State of the Union address had been "incorrect."

Let us look at the timeline of this and consider the definition of "incorrect":

· February 2002: Ambassador Joseph Wilson is dispatched by Cheney to Niger to investigate Iraq-uranium claims. Eight days later, he reports back that the documentary evidence was a forgery;

· August 26, 2002: Dick Cheney claims Iraq is developing a nuclear program;

· September 24, 2002: CIA Director Tenet briefs the Senate Intelligence Committee on the reported Iraqi nuclear threat, using the Niger evidence to back his claims;

· September 26, 2002: The IAEA vigorously denies that any such nuclear program exists in Iraq;

· October 6, 2002: George W. Bush addresses the nation and threatens the American people with "mushroom clouds" delivered by Iraq, using the same Niger evidence;

· October 10, 2002: Congress votes for war in Iraq, based on the data delivered by Tenet and by the nuclear rhetoric from Bush four days prior;

· January 2003: George W. Bush, in his State of the Union Address, says, "The British government has learned that Saddam Hussein recently sought significant quantities of uranium in Africa."

· March-April 2003: War in Iraq kills thousands of civilians and destabilizes the nation;

· April-July 2003: No evidence whatsoever of chemical, biological or nuclear weapons can be found in Iraq. 212 American soldiers have died, and 1,044 more have been wounded, as a guerilla war is undertaken by Iraqi insurgents;

· July 2003: Amid accusations from former intelligence officials, the Bush administration denies ever having known the Niger evidence was fake.

The Bush administration knew full well that their evidence was worthless, and still stood before the American people and told them it was fact. Bush sent the Director of the CIA to the Senate under orders to use the same worthless evidence to cajole that body into war.

That is not being "incorrect." That is lying. In the context of Bush's position as President, and surrounded by hundreds of dead American soldiers piled alongside thousands of dead Iraqi civilians, that is a crime.

They know it, too.

A report hit the Reuters wires late Tuesday night announcing the arrest of an Iraqi intelligence official named Ahmad Khalil Ibrahim Samir al-Ani. An unnamed "US official" claimed al-Ani had reportedly met with 9/11 ringleader Mohammed Atta in Prague just months before the attack. The old saw about Iraq working fist in glove with al Qaeda to bring about September 11 was back in the news.

According to the story, neither the CIA or the FBI could confirm this meeting had taken place. In fact, a Newsweek report from June 9 entitled "Where are the WMDs?" shows the FBI was completely sure such a meeting had never taken place. The snippet below is from the Newsweek article; the 'Cabal' statement refers to Defense Secretary Rumsfeld and his coterie of hawks who have been all-out for war on Iraq since 1997:

"The Cabal was eager to find a link between Saddam and Al Qaeda, especially proof that Saddam played a role in the 9-11 attacks. The hard-liners at Defense seized on a report that Muhammad Atta, the chief hijacker, met in Prague in early April 2001 with an Iraqi intelligence official. Only one problem with that story, the FBI pointed out. Atta was traveling at the time between Florida and Virginia Beach, Va. (The bureau had his rental car and hotel receipts.)"

Amid the accusations that have exploded surrounding the revelations of Wilson, Thielmann and other high-ranking intelligence officials, comes now again reports of the infamous Iraq-al Qaeda connection, an administration claim meant to justify the war. As with the Niger forgery, however, it is too easily revealed to be utterly phony.

It reeks of desperation. This administration is learning a lesson that came to Presidents Nixon and Johnson with bitter tears: Scapegoat the CIA at your mortal peril.

There are many who believe that blaming George W. Bush for the errors and gross behavior of his administration is tantamount to blaming Mickey Mouse for mistakes made by Disney. There is a great deal of truth to this. Groups like Rumsfeld's 'Cabal,' and the right-wing think tanks so closely associated to the creation of administration foreign policy, are very much more in control of matters than Bush.

Yet Bush knew the facts of the matter. He allowed CIA Director Tenet to lie to Congress with his bare face hanging out in order to get that body to vote for war. He knew the facts and lied himself, on countless occasions, to an American people who have been loyally supporting him, even as he beats them over the head with the image of collapsing towers and massive death to stoke their fear and dread for his own purposes. In doing these things, he consigned 212 American soldiers to death, along with thousands of innocent bystanders in Iraq. Given the current circumstances, there will be more dead to come.

There is no "The President wasn't told" justification available here, no Iran/Contra loophole. He knew. He lied. His people knew. They lied.

Death knows no political affiliation, and a bloody lie is a bloody lie is a bloody lie. The time has come for Congress to fulfill their constitutional duties in this matter, to defend the nation and the soldiers who live and die in her service. The definition of 'is' has flown right out the window. This 'is' a crime. George W. Bush lied to the people, and lied to Congress. There are a lot of people dead because of it.

One Congresswoman, Democratic Representative Jan Schakowsky of Illinois, released a statement on July 8 that cuts right to the heart of the matter:

"After months of denials, President Bush has finally admitted that he misled the American public during his State of the Union address when he claimed that Iraq attempted to purchase uranium in Africa. That is why we need an independent commission to determine the veracity of the other so-called evidence used to convince the American people that war with Iraq was unavoidable.

"It is not enough for the White House to issue a statement saying that President Bush should not have used that piece of intelligence in his State of the Union address at a time when he was trying to convince the American people that invading Iraq was in our national security interests. Did the president know then what he says he only knows now? If not, why not, since that information was available at the highest level.

"What else did the Bush Administration lie about? What other faulty information did Administration officials, including President Bush, tell the American people and the world? Did the Bush Administration knowingly deceive us and manufacture intelligence in order to build public support for the invasion of Iraq? Did Iraq really pose an imminent threat to our nation? These questions must be answered. The American people deserve to know the full truth."

The voice of Rep. Schakowsky must be followed by others both within and without the majority. If nothing is done about this, American justice is a sad, sorry, feeble joke.

-------

William Rivers Pitt is the Managing Editor of truthout.org. He is a New York Times best-selling author of two books - "War On Iraq" available now from Context Books, and "The Greatest Sedition is Silence," now available from Pluto Press at www.SilenceIsSedition.com.



To: lurqer who wrote (21847)7/11/2003 7:22:24 PM
From: stockman_scott  Read Replies (2) | Respond to of 89467
 
All Spin All The Time
__________________________

by Russ Baker

Published on Friday, July 11, 2003 by TomPaine.com


Viva Nihilism! It must be great working in the Bush White House. Zero accountability. It's All Spin, All the Time. Nothing matters but politics, hence no unfounded claim requires correction or apology. Unless, of course, they are pushed to the end of the plank, as they were recently with the tale about Niger and nuclear materials.

Take those elusive Weapons of Mass Destruction. Despite the failure of the concentrated might of the U.S. military-intelligence complex to find anything that might qualify in the remotest possible way, the administration labels critics "revisionist historians" and imperturbedly moves on. The initial assertions and touted "discoveries" usually get more attention than does the sound of a balloon deflating. That's why polls find a sizable chunk of the American public still under the impression that WMD have been found.

Whatever Saddam's interest in WMD, the administration didn't know what he had and didn't have solid evidence to make the claims it did -- much less to launch a war over them. For those amateur "revisionist historians" out there, here is a partial, unscientific reconstruction of the claims that fizzled.

THE CLAIM:

"Iraq has trained Al Qaeda members in bombmaking and poisons and deadly gases... [which] could allow the Iraqi regime to attack America without leaving any fingerprints." - President Bush, Oct. 7, 2002.

THE FACTS:

The alleged Al Qaeda training camp, which Colin Powell described to the United Nations in February, is later revealed to be outside Iraq's control and patrolled by Allied warplanes. By late June, Michael Chandler, the head of the U.N. team monitoring global efforts to counter Al Qaeda tells Agence France Press: "We have never had information presented to us -- even though we've asked questions -- which would indicate that there is a direct link."

THE SPIN:

State Dept. spokesman Richard Boucher responds: "Secretary Powell provided clear and convincing evidence of the links between Iraq and Al Qaeda."

THE CLAIM:

"The British government has learned that Saddam Hussein recently sought significant quantities of uranium from Africa," Bush declares in the State of the Union address.

THE FACTS:

In March, Mohamed ElBaradei, director-general of the International Atomic Energy Agency (IAEA), tells the U.N. Security Council that the documents substantiating the claim of alleged Iraqi efforts to buy uranium in Niger were fakes (and bad ones at that) and that "these specific allegations are unfounded." The unnamed ex-ambassador whom the CIA sent to check out the story tells The New Republic: "They knew the Niger story was a flat-out lie."

THE SPIN:

Pass the buck, finally 'fessing up in a White House statement delivered on July 7 that Bush should not have used the uranium allegations in his address.

THE CLAIM:

U.S. officials present evidence suggesting that Iraq tried to buy aluminum tubes for use in centrifuges for the uranium enrichment process.

THE FACTS:

IAEA's ElBaradei later reports that extensive investigation "failed to uncover any evidence" that Iraq intended to use the tubes for any project other than the reverse engineering of rockets.

THE SPIN:

Powell releases a contradictory interpretation of the tubes, then the matter disappears.

THE CLAIM:

In early April, the Pentagon "confirms" discovery of a biological and chemical weapons storage site near the town of Hindiyah, complete with suspected sarin and tabun nerve agents.

THE FACTS:

Fourteen barrels of liquids are reassessed to be pesticide.

THE SPIN:

Silence.

THE CLAIM:

In early April, a white powder found at a site near Najaf is described as possible chemical agents, and presented as a likely "smoking gun."

THE FACTS:

The powder is an explosive.

THE SPIN:

Silence.

THE CLAIM:

"Biological laboratories described by our Secretary of State to the whole world that were not supposed to be there, that are a direct violation of the U.N. resolutions, have been discovered," Bush tells reporters, on May 29, referring to trailers the administration says are mobile labs.

THE FACTS:

For weeks, numerous independent experts express serious doubts about the trailers' purposes; a classified State Department intelligence memo cited by The New York Times also cautions about premature conclusions.

THE SPIN:

"The experts have spoken and the judgment of the experts is very clear on this matter," says Fleischer. Colin Powell splits hairs in backing the White House: State experts "weren't saying it was not a mobile lab, they just were not quite up in that curve of confidence that the rest of the intelligence community was at..."

THE CLAIM:

"We believe [Saddam] has, in fact, reconstituted nuclear weapons." - Vice President Cheney, March 16, 2003 on Meet the Press.

THE FACTS:

After the fighting, an Iraqi nuclear scientist cuts a deal for refuge with the United States. Buried in his garden are documents and parts of a gas centrifuge, which could be used to enrich uranium for bombmaking. But the process of enriching uranium would require hundreds or thousands of precisely machined centrifuges, working together perfectly.

THE SPIN:

The administration declares this evidence that Bush and Cheney were correct in saying that Saddam had never given up hope [italics added] of building nuclear weapons. From "possession" to "hope" in one easy spin.

THE CLAIM:

In his State of the Union address, Bush claimed Iraq had the capacity to produce 38,000 liters of botulinum toxin, 25,000 liters of anthrax and 500 tons of sarin, mustard gas and VX nerve agent. He said Iraq also had 30,000 munitions capable of delivering chemical weapons, plus several mobile biological weapons laboratories and an active nuclear weapons development program.

THE FACTS:

Despite coalition troops combing the country, and vast reward monies offered, none of this arsenal has been uncovered.

THE SPIN:

The administration "remains confident" that something substantial will be found.
_______________________________

New York-based Russ Baker is an award-winning journalist who covers politics and media.

Copyright TOMPAINE.com


commondreams.org



To: lurqer who wrote (21847)7/11/2003 10:04:25 PM
From: stockman_scott  Respond to of 89467
 
don't bet the house on a crash. bet the garage.

July 11, 2003

www.dailymarketsummary.com

GE Confirms: No Sign Of The Second Half Fable In The Real World Yet

Asia was mostly a little lower overnight, with the Nikkei taking its biggest tumble of the year and losing 3 percent. The JGBs fell in yield to .99%.

Europe was up over a percent this morning, and the US futures were flat. The May trade deficit came in at $41.8 bil, which was near unchanged with the prior month and still hovering around the recent all-time record of $45 bil. The June PPI rose .5 percent. But if you don’t eat, drive, or heat your home, it fell .1 percent, which prompted some talking heads to actually bring up “deflation,” which is almost laughable.

We opened flat and immediately began working our way slowly higher, but unlike the easy meltups that we have been used to, this rally was more of the struggling variety. We peaked out around noon well short of yesterday’s highs and dipped back to the open in a slow slide that lasted most of the afternoon. A bounce back up to just shy of the morning’s highs in the last hour, however, helped to take us out near very best levels of the session. Volume backed off from yesterday’s levels (1.2 bil on the NYSE and 1.5 bil on the NASDAQ). Breadth was over 2 to 1 positive on the NYSE and slightly less than that on the NASDAQ.

Networking giant JNPR (a $14 stock) reported a whopping 3 cents for Q2, which was above the 2-cent estimate. Revenue was inline, and the company then proceeded to guide Q3 revenue and earnings flat. So let’s say JNPR gets that guidance right. Then let’s say the Q4 jack-in-the-box recovery doesn’t magically appear, so they make 3 cents again in Q4. That means this company makes 10 whole cents for the year and if it’s lucky and the US somehow avoids a recession, it may make 10 or 12 cents again next year. 140x forward earnings for this? Seems a little rich doesn’t it? With this example you can see the problem that most tech stocks have today: unrealistic expectations in a post-bubble world. JNPR rose 3 percent, but could not make a new high.

The semis were mixed, although some other house upgraded INTC to super duper duper buy ahead of its earnings next Tuesday. INTC rose 2 percent to just shy of a new high. There is so much optimism in front of INTC’s earnings release next week that it could be setting us up for a bit of disappointment because I do not think the company will have anything positive to say. The equips were also mixed, possibly in reaction to TSM saying that it was delaying beginning production at one of its new 12-inch fabs (it’s not like the capacity is needed or anything, but then again, that is not news). The SOX slipped to a marginal new low for the move in the afternoon but bounced back into the close to end up an eyelash.

The Internet trash was mixed. YHOO slipped a percent to another new low for the move, as did AMZN. The tier 3 trash was also mixed, but I didn’t see anything really powering to the upside. In fact, not only has there been a divergence between the NASDAQ making new highs recently and the rest of the market not, but new highs even with in the NASDAQ continue to be unable to get above the level that we saw back on June 6th (when the vast majority of stocks peaked), indicating that fewer and fewer stocks have been driving this last push higher.

Financials were higher. The BKX and XBD both rose a percent. The derivative king rose 2 percent. GE’s Q2 results came in as expected, and the company forecasted, "Continued slow economic growth," although they hoped that with the war and SARS behind us, the economy would improve in the second half (isn’t that surprising?). They were so confident of this improvement that GE’s management also lowered the high end of its full year 2003 guidance from $1.70 to $1.61. GE fell a hair after spending most of the day slightly higher. Mortgage lenders were mostly higher by a percent or so. FRE and FNM were flat.

Retailers were mostly higher, with the RTH rising 2 percent. Homebuilders were lower across the board by a percent or so, as the group continues to inch back to its recent low for the move. The homebuilding area, for the moment at least, seems to be the on area that is consistently being sold.

Crude oil rose 22 cents to another new high for the move. The XOI and XNG both rose a percent. The CRB was flat. Gold opened down a dollar in NY this morning but once again held Tuesday’s lows for the third day in a row. The rest of the session was a steady march back to the previous days highs, which has been the trend over the last 3 days as the metal has begun stabilizing. The metal went out up 50 cents to $345.10. The HUI spent most of the day down a touch, but turned higher into the close to close basically unchanged. We should begin to see gold and her shares rally next week as it becomes more and more clear to the herd that the economy is not accelerating and will not be sopping up all the excess liquidity that the Fed is pumping into the system. With stocks having apparently exhausted themselves to the upside, that liquidity should then begin to move into the metals as the dollar weakens again.

The US dollar index rose half a percent. The yen was flat. The euro fell nearly a penny but failed to make a new low for the move. Treasuries rose a touch once again in the long end, with the yield on the bond.com falling to 3.64%.

Coming on the heels of yesterday’s selloff, today’s bounce is a perfect example of what I am talking about when I say that stocks are not going to “go down well” off the peak. We didn’t snap back and retake all of yesterday’s lost ground today, but it’s frustrating for anybody betting on downside (and likewise helps to keep most hopers complacent in sitting with their stocks). I still expect us to move lower again next week, but it’s going to be a struggle I think. We may even see the VIX, which closed at 20.72 today, finally decline below 20 despite the fact that the best prices for the vast majority of stocks have already been seen. That’s just the nature of peaks in a bear market. The heavy selling comes later once it’s obvious that hope was misplaced again and a large number of participants are underwater in their short-term positions. So, let’s see how the hopers react to next week’s lackluster guidance. Again, I suspect we’re in for a couple of weeks of sliding, but it’s not going to be anything to write home about.

While I cannot provide personalized investment advice or recommendations, I welcome feedback and observations by subscribers.
You can email me at Lance Lewis.

Disclaimer: Lance Lewis periodically publishes columns expressing his personal views regarding particular securities, securities market conditions, and personal and institutional investing in general, as well as related subjects.

Mr. Lewis is the president of Lewis Capital, which manages a hedge fund in Dallas, Texas. This fund regularly buys, sells, or holds securities that are the subject of his columns, or options with respect to those securities, and regularly holds positions in such securities or options as of the date those columns are published. The views and opinions expressed in Mr. Lewis' columns are not intended to constitute a description of the securities bought, sold, or held by the fund. The views and opinions expressed in Mr. Lewis' columns are also not an indication of any intention to buy, sell, or hold any security on behalf of the fund, and investment decisions made on behalf of the fund may change at any time and for any reason. Mr. Lewis' columns are not intended to constitute investment advice or a recommendation to buy, sell, or hold any security.

Copyright © 2002 Lewis Capital, Inc. All rights reserved.



To: lurqer who wrote (21847)7/12/2003 11:51:32 AM
From: stockman_scott  Respond to of 89467
 
Fed officials were reported to be "reveling" in their ability to manipulate the market.

gulf-daily-news.com

Vol XXVI NO. 114 Saturday 12 July 2003


Fed's attempt to shore up economy backfires


NEW YORK - The Federal Reserve's attempt to shore up the economy by talking down interest rates has backfired in recent weeks as rates have risen, possibly threatening the recovery the central bank has sought.

Back in May, Fed officials, including Chairman Alan Greenspan coaxed bond yields lower with talk of building a "fire-brake" against deflation, which could include outright purchases of longer-dated Treasuries.

As a result benchmark 10-year yields hit lows not seen since 1958 and Fed officials were reported to be "reveling" in their ability to manipulate the market.

But recent data suggested that while the US economy is struggling, it was a long way off being sucked into a deflationary spiral.

When the Fed delivered only a modest 25 basis point rate cut at its June 25 meeting, the market was left with the distinct impression that all its talk of radical anti-deflation measures was nothing but hot air. The result has been a steep rise in longer-term yields and a sharp "bearish" steepening in the Treasury yield curve - the difference, or spread, between bonds of varying maturities.

"It's a mirror image of what we saw in April," said Richard Gilhooly, fixed income strategist at BNP Paribas. "Basically, the market has concluded that we are at a floor in terms of interest rates, which is possibly true, but if that's the case then they (Fed) certainly don't want long term rates to be moving higher," he said.