Privately Giuliani aides say this story, less then 40 days before Iowa, is a drag on the campaign because it is now left having to defend the expenses while tacitly acknowledging the affair.
Ultimately this will mean that he will be confronted with questions that ask him to explain the whole thing and what he was doing up there. How do you ask politely if it was true that he was screwing his third wife in the Hamptons while his second wife waited innocently at home. All the while his police escort was waiting outside on the city's dime. Good luck Rudy.