Bloomberg party switch fuels talk of 2008

By Steve Holland

WASHINGTON (Reuters) - New York Mayor Michael Bloomberg's switch from Republican to independent fueled talk on Wednesday of a possible U.S. presidential bid that experts said could hurt Democrats, Republicans -- or both.

Nobody in Washington who makes a living in politics thought the 65-year-old Democrat-turned-Republican-turned-independent could win. But third-party candidates can play a spoiler role.

Speaking to reporters in New York a day after his latest switch, Bloomberg sought on Wednesday to dampen speculation about a campaign while leaving the door firmly ajar to a race.

"I have said that my intention is to be mayor for the next 925 days," he said. He said the shift was in keeping with how he wanted to lead the city.

But political analysts said the billionaire businessman seemed to be setting up at least the potential for jumping into the race at a late date, possibly with $500 million of his own personal fortune.

"You can't underestimate a guy willing to spend $500 million in such a short period of time," said Republican strategist Scott Reed.

With President George W. Bush on the ropes over Iraq and 10 Republicans and eight Democrats running to succeed him in the November 2008 election, Bloomberg created a tantalizing blaze of publicity for himself by becoming an independent.

But polls did not give him much hope at this stage. A survey by the Pew organization before Bloomberg announced his party switch said only 9 percent of voters who have heard of him said there was a good chance they would vote for him.

Worth an estimated $5.5 billion, Bloomberg could put up a formidable fight.

Witness Ross Perot in 1992, apparently taking votes from President George H.W. Bush, and Ralph Nader in 2000, capturing votes that might otherwise have gone to Democrat Al Gore, and even Theodore Roosevelt in 1912, who ruined things for William Howard Taft.

DEMOCRATS SWIPE AT REPUBLICANS

Democrats seized on Bloomberg's party defection as an opportunity to swipe at the Republicans.

"I'm not surprised that anyone would want to leave the Republican Party," said New York Sen. Hillary Clinton, who is leading in polls for the Democratic presidential nomination.

Republicans voiced disappointment at Bloomberg's defection after helping bankroll his run for New York City mayor in 2001 when he abandoned the Democrats and became a Republican.

"I am sorry to learn of his decision," said Republican National Committee chairman Robert "Mike" Duncan.