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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: regli who wrote (41120)	11/14/2005 10:03:31 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

House considers selling fed land at 19th century prices WASHINGTON (AP) — As many as 20 million acres of public land could be sold under an obscure but sweeping change in mining law tucked into a budget bill up for a vote in the House. A provision in the bill would overturn a congressional ban on letting mineral companies and individuals buy public lands, including some in national forests and parks, at cheap prices if they contain mineral deposits. "If this provision became law, it could literally lead to the privatization of millions of acres of public land, including national park and national forest land," said Dave Alberswerth, public lands director for The Wilderness Society. A vote on the overall bill could come as early as Thursday. Congress has decided each year since 1994 to prohibit mining companies from exploiting an obscure part of the 1872 mining law that allows businesses and individuals to "patent," or buy, some of the nation's most scenic lands at 19th century prices — just $2.50 to $5 per acre. It gives them absolute title, including mineral rights, to the properties. usatoday.com

To: regli who wrote (41120)	11/14/2005 10:05:09 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

US can still fund trade gap: Greenspan Mon Nov 14, 2005 11:47 AM ET By Greg Brosnan MEXICO CITY (Reuters) - The recent dollar rise is a sign the U.S. economy is facing few problems funding its big current account gap, but the shortfall cannot expand forever, Federal Reserve Chairman Alan Greenspan said on Monday. "To date, despite a current account deficit exceeding 6 percent of our gross domestic product, we -- or more exactly the economic entities that comprise the U.S. economy -- are experiencing few difficulties in attracting the foreign saving required to finance it, as evidenced by the recent upward pressure on the dollar," he said via video hookup to a Banco de Mexico conference in Mexico City. Greenspan said a nation's current account surplus is really a market phenomenon not easily fixed by policy steps. "Being able to rely on markets to do the heavy lifting of adjustment is an exceptionally valuable policy asset," he said. Policy initiatives that raised interest rates would likely elevate U.S. domestic savings, Greenspan said, but they would also attract a larger flow of foreign investment, blunting the effect on the current account gap. The Fed chief, who has warned of the dangers of government deficits in the face of an aging population, said reducing the U.S. budget gap could help cut the shortfall in the current account, though "to an uncertain and possibly small extent." The current account, the broadest measure of U.S. trade with the rest of the world since it includes investment flows, ran at 6.3 percent of gross domestic product in the second quarter of the year. While financial markets were not reacting as some had feared to the mounting current account gap, foreign investors would not be willing to fund the deficit indefinitely, particularly as the proportion of dollar assets rises in their portfolios, he said. "At some point, investors will balk at further financing." Greenspan said the best way for the United States to ensure it weathers global readjustments unscathed is to maintain and promote economic flexibility, including in the labor market. The Fed chief said economic flexibility would help the United States should the dollar lose its vaunted status as the preferred reserve currency of foreign powers -- a phenomenon that would likely push up interest rates. But Greenspan added he didn't think that the dollar would lose its dominant place on the global stage "anytime soon."

To: regli who wrote (41120)	11/14/2005 11:05:53 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

Chill Settles Over Housing Market These headlines always amaze once one looks at the body. snips: "There's no need for the alarm bells to go off; median prices are just going to come down off very high highs. We're talking about a gain of 12.5 percent that was expected this year to come down to more of about a 5 percent gain in terms of median home price appreciation. So, (there's) more of a leveling off. You have to keep things in perspective here, coming off very high high highs. "If you are looking to buy, it's still a good time to buy because rates, while they have been edging up, are still low, a little over 6 percent and, if you wait, rates are going to be higher and you could price yourself out of the market. It's a good time to buy now, too, because sellers are getting a little anxious, winter is coming up, it's a very slow season and sellers may we more inclined to give you a better price, certainly better than what was going on in the summertime." cbs2chicago.com