Congressional Budget Office to underscore the remarkable deterioration in the govt's fiscal health over the last
two years and to forecast bigger deficits than President Bush has predicted in both the short- and long-term. The CBO has said the government will run a deficit of around $157 billion in fiscal year 2002

HOUSE SALES AND VALUES UP -
Motivated by low interest rates, buyers pushed sales of new homes up 6.7 percent in July. The advance propelled sales to a seasonally adjusted annual rate of 1.02 million, an all-time monthly high, the Commerce Department reported today. The increase surprised analysts who were forecasting sales to fall around 3 percent. Clearly the butcher, baker and candlestick maker (aka ordinary folks securities selldowns) went into realty or mortgage returns.

Recent months show a mild upturn in cars and computer sales but consumer spending accounts for about two-thirds of the nation's economic activity and that is down more then analysts predicted. Looks a kind of haves and more havenots scenario.. huh?

The Pharmaceutical Research and Manufacturers of America (PhRMA) and allied patients groups presented oral arguments today in federal court in
Washington, D.C., in support of their lawsuit to stop Michigan and other states from using preferred drug lists to cut Medicaid costs. The lawsuit
(PhRMA v. Thompson and Scully), which is opposed by the Bush
administration, seeks to ensure that Medicaid patients have access to any drugs prescribed by their doctors in Michigan and 13 other states that have implemented or plan to adopt drug formularies. Under Michigan's law, the approved Medicaid list is limited to drugs whose manufacturers pay
rebates to the state.
ENDS-jonz-