Anti-Thymocyte Globulin and Etanercept in Treating Patients With Myelodysplastic Syndromes

DISEASE CHARACTERISTICS: * Diagnosis of myelodysplastic syndromes (MDS) * Low- or intermediate-1-risk disease, as defined by International Prognostic Scoring System (IPSS) criteria, meeting 1 of the following criteria: * Single or multilineage cytopenia, as defined by all of the following: * Absolute neutrophil count \< 1,500/mm\^3 * Hemoglobin \< 10 g/dL * Platelet count \< 100,000/mm\^3 * Transfusion requirement of ≥ 2 units of packed red blood cells within an 8-week period * Not eligible for stem cell transplantation due to any of the following reasons: * No suitable bone marrow donor available * Not eligible for a transplantation protocol * Not willing to undergo transplantation * No intermediate-2- or high-risk MDS * No chronic myelomonocytic leukemia PATIENT CHARACTERISTICS: Age * 18 and over Performance status * Not specified Life expectancy * Not specified Hematopoietic * See Disease Characteristics Hepatic * Not specified Renal * Not specified Pulmonary * No pneumonia within the past 2 weeks Other * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective contraception * No other severe disease that would preclude study compliance * No other active severe infection (e.g., septicemia) within the past 2 weeks PRIOR CONCURRENT THERAPY: Biologic therapy * More than 4 weeks since prior and no concurrent hematopoietic growth factors for MDS * More than 4 weeks since prior immunomodulatory therapy for MDS * No prior anti-thymocyte globulin * No prior hematopoietic stem cell transplantation * No other concurrent immunomodulatory therapy for MDS Chemotherapy * Not specified Endocrine therapy * Prednisone \< 5 mg/day allowed Radiotherapy * Not specified Surgery * Not specified Other * More than 4 weeks since prior and no concurrent cytotoxic therapy for MDS * More than 4 weeks since prior experimental therapy for MDS * No other concurrent experimental therapy for MDS