The A/D Line weakenwss after the breakout in April 1992. The Fed did not
drop interest rates quickly enough to keep the stock market rising and boost
George Bush I's re-election chances. . The Fed waited until July 3, 1992 to lower
rantes to 3.0% from the 3,5% rates set earlier on December 20, 1991. Thus was too
late. The economy llanguihed. The elder Bush once said of Greenspan: "I reappointed
him and he disappoined me." The Bush people believed Greenspan's inaction
cost them the 1992 Presidential Election. See also The Presidential Election Cycle
Theory and The Fed by Henry C.K.Liu
