Mixed Economic News

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Monday, April 25, 2011 - 3:40pm

Home sales are up, but so are gas prices.

There was good economic news mixed in with the bad Monday.

New home sales are up, but so are gas prices.

The highest price is in Chicago, where motorists are paying $4.27 a gallon.

President Obama says he's looking into the issue, but admits there's no "silver bullet".

He does say now is the time to end the array of tax breaks enjoyed by the big oil companies.

In other economic news, new home sales jumped 11 percent, but sales and prices are way down from last March.

Bad for new home sellers.

"They don't have much inventory so there's not a whole lot of product to show to people, and they've got an awful lot of competition from the existing home market where we've got all these foreclosures and short sales and their extreme drop in prices," explains Wells Fargo economist Mark Vitner.

Meanwhile, the Supreme Court has declined to decide the Virginia challenge to Obama health care reform as a "fast track" case.

The plan will go forward while cases move through lower courts.

Health and Human Services Secretary Kathleen Sebelius is relieved.

"I think anything that really stops the progress that we're able to make to really address how we end up spending our money to get a healthier population and to lower costs for everyone is a step backward," she said.

House Speaker John Boehner and his fellow Republicans still vow to repeal the plan they call "Obamacare".

That will be a much bigger issue than gas price or home sales in the big fight ahead over how to cut the deficit.

 

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