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.
Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: calgal who wrote (25278)11/10/2002 12:23:27 PM
From: Snowshoe  Respond to of 74559
 
Definitely a better mood here since the election...

Alaska sits in catbird seat
adn.com

GOP CONGRESS: Stevens holds budget reins; ANWR drilling becomes possible.

By David Whitney
Anchorage Daily News

(Published: November 8, 2002)
Washington -- Alaska stands to gain substantially from the Republican takeover of the Senate in Tuesday's elections.

Not only does it restore Sen. Ted Stevens to his perch as chairman of the Senate Appropriations Committee -- from which he has diverted billions of dollars into the state's economy -- but it gives advocates of oil drilling in the Arctic National Wildlife Refuge what may be their best opportunity to get it through Congress.

John Katz, head of the governor's office in Washington, noted that "Republicans will control all key policy positions in Alaska and Washington, D.C.

"There will be a lot of communication and cooperation on Alaska issues," he said. "Secondly, Republicans will now have the opportunity to set the national agenda, and a large part of that is energy and natural resources important to Alaska, particularly the Arctic National Wildlife Refuge."

But one irony is that the state's junior senator, Gov.-elect Frank Murkowski, will not be at the helm of the Senate Energy and Natural Resources Committee to help make that happen, even though it has been his top priority in the Senate since exploration was first proposed by President Reagan in 1986.

Because of Murkowski's easy win Tuesday, he will resign his seat in December -- and his opportunity to reclaim the gavel from Democratic chairman Jeff Bingaman of New Mexico. Instead, Murkowski will appoint a fellow Republican to fill the remaining two years of his Senate term, and that person will be at the bottom of the Senate seniority ladder.

Already on Capitol Hill, change is in the air.

"We are certainly now aware that we will be packing up the office," said Murkowski's press aide, Chuck Kleeschulte. "We have 22 years of correspondence and files to send to wherever they are going in Alaska. We have a great deal of work to do before the new senator arrives in December."

Alaska is not used to having freshmen in Congress. That last newcomer in the three-member congressional delegation was Murkowski, who has been around since 1981.

The state's representative, Don Young, was easily re-elected Tuesday. He returns in a senior leadership role next year as the continuing chairman of the House Transportation and Infrastructure Committee, where he will direct the production of massive highway and water project bills. Young, who turns 70 next year, will be in his 16th term.

But the senior member of the delegation remains Stevens, who turns 79 on Nov. 18. As it turns out, he will also be the most senior Republican in the Senate because of the retirement of Sen. Strom Thurmond, R-S.C. That distinction makes Stevens the Senate president pro tempore, who presides over the Senate -- or, more typically, assigns that task to others on a rotation.

Stevens will have other tasks with his new title, as well as a salary equal to that of Mississippi Sen. Trent Lott, who will resume the job of Senate majority leader in the next Congress. The Senate president pro tempore is an ex officio member of the Republican Policy Committee, appoints members of various national commissions, names the director of the Congressional Budget Office and in the absence of the vice president -- who under the Constitution is the Senate's designated presiding officer -- can sign legislation.

But most of Stevens' responsibilities in the new Congress will be on the first floor of the Capitol, where he will move back into the ornate, ceremonial offices of the Senate Appropriations Committee and oversee the process of spending the federal budget.

Stevens has excelled at directing an increasing share of federal spending to his state, creating new social and economic programs and gradually erasing any obstacles barring Alaska from program revenue streams.

"While Senator Stevens works effectively whether in the majority or minority, there is no question that resumption of his chairmanship will facilitate his advocacy of appropriations important to Alaska," Katz said.

On the immediate horizon, Stevens also may have to shoulder a larger share of the work advocating for the opening of the Arctic refuge until his new unnamed colleague gets some time under his or her belt. The refuge's coastal plain is believed to hold billions of barrels of undiscovered oil, but drilling for it also is the most controversial environmental issue before Congress.

With Democrats in control of the Senate this session, they've been able to keep the opening of the refuge out of any Senate-passed energy policy bill. But drilling was easily approved in the House, where Republicans will have an even wider margin of control next year.

The House and Senate were never able to reach agreement on a compromise energy bill this fall, and with the change in leadership, Congress will now drop the issue until the next session, when it will start anew.

David Woodruff, Republican spokesman on the Senate Energy Committee, believes the Republican victory Tuesday in reclaiming control of the Senate virtually ensures that the panel will approve drilling in the refuge as part of its energy plan.

"This is indeed good news for Alaska," he said. "Opening ANWR was a top priority for President Bush, and obviously you'll have a leadership much more interested in pursuing that."

Pete Rafle of The Wilderness Society cautioned, however, that the battle over Arctic drilling is hardly over just because a couple more Republicans will be serving in the Senate next year.

"Republicans would like to make drilling front and center again," he said. "But the conservation community is preparing to mount a defense of the refuge no less determined than this year. The balance of power in the Senate may have changed, but the basic equation in the energy debate hasn't. We still cannot drill our way to energy independence."

But Katz, who has been in Washington nearly as long as Stevens and Young in various capacities, thinks the edge clearly shifts to Alaska's advantage next year.

While there are still not enough votes in the Senate to block a filibuster of a drilling provision, he said there are various scenarios where the Republican congressional leadership can position a drilling authorization in such a way as to make it difficult for opponents to use procedural tactics like the filibuster to block it.



To: calgal who wrote (25278)11/10/2002 2:22:17 PM
From: maceng2  Read Replies (2) | Respond to of 74559
 
Finally, reality is acknowledged by UK banks. 30% increases in house values is OK if wages are going up by the same amount. They are not of course. Similarly an average house price of £146k is alright if two people are earning an average wage...just. £21.5k X 2 = £43k. Price still over 3 times earnings though. And that is without kids. Cost of nannies going through the roof.

Huge mismanagement by Gordon Brown and the Banks imho.
-------------------------------------------------------

Bank fears housing crash

news.bbc.co.uk

By Steve Schifferes
BBC News Online economics reporter

The Bank of England will warn next week of the dangers of a collapse in house prices.

It is expected to say that it cannot cut interest rates to boost the flagging manufacturing sector for fear of launching a runaway boom in house prices that could suddenly burst, plunging the economy into recession.

The Bank of England left interest rates unchanged last week at 4% despite a cut in US rates from 1.75% to 1.25%.

Members of the Bank's Monetary Policy Committee (MPC) are worried that the consumer boom keeping the UK economy afloat is being driven by people cashing in on high house prices.

They fear that if the housing boom goes into reverse, the huge debts individuals have taken on could become unmanageable, driving down consumer spending.

The Bank of England will be releasing its latest inflation forecast on Wednesday, and it is likely to say that despite the high house prices, overall inflation is likely to remain below its 2.5% target range for the foreseeable future.

Last week the Halifax said that house prices were rising at a record 30.4% annually, with a rise of nearly 5% in October alone.

And the Land Registry found that an average property in England and Wales is now worth £146,150,compared with an average value of £123,856 a year ago.

And estimates show that equity withdrawal - where people get a higher mortgage in order to finance current spending - is rapidly increasing.

The Centre for Economics and Business Researach says that it has reached £40bn, or 6% of consumer spending.

The house price boom has now reached the levels of the l988/89 boom, which ended in a sharp correction coupled with high interest rates, negative equity and a recession.

Total consumer debt, including mortgages, has reached £800bn, and is rising by 14% per year.

The difference between l989 and the current situation is interest rates, which are at historic lows, compared to the doubling of rates from 7.5% to 15% during the early l990s.

Unemployment is also lower now, and rising real incomes are fuelling the house price boom.

That means that so far housing is still more generally affordable - except for first-time buyers in the Southeast.

So far the potential effect of job cuts and lower wages on housing prices has been most evident for luxury homes in London.

The top end of the London market has been hit by a reduction in City bonuses and large-scale layoffs, with prices in Kensington and Chelsea (which has the highest average house prices in the country) falling by around 15%.

Government plans

There is speculation that the Chancellor may want to tackle house prices in his pre-Budget report, which is likely to take place on 26 November.

The Chancellor may be tempted to raise further stamp duty, which he has already increased substantially before, to stop speculative purchases of houses.

The difficulty will be that such a tax would be seen as yet another attack on the middle class, who could also face cuts to their pension contribution tax rebates and higher university tuition fees.

However, the effect of rising house prices has been to sharply increase the Chancellor's tax take from stamp duty already.

A study commissioned by Radio 5 Live suggested that, within a decade, one in four households will be paying the higher rate of 3% of stamp duty when they moved house.

The report's author, Professor Steve Wilcox of York University, warned that stamp duty could have negative economic consequences.

"Stamp duty is a tax on mobility, that penalises households that move more frequently," he said.