The economy and the environment were in the headlines. Some economists were voicing concerns that rising prices for gasoline and food are eroding the value of $120 billion in economic stimulus checks that the Internal Revenue Service is distributing. On another economic front, Congress is debating ways to stabilize the battered housing market. The Senate, meanwhile, prepared to take up legislation on global warming when Congress reconvenes on Monday.

Economic Stimulus Tax rebates of up to $1,200 a couple were intended to jump start the economy, but rising prices have diluted the impact of the checks that were being mailed out by the IRS from May through mid-July. Merrill Lynch economist David Rosenberg told Newsweek that the part of the stimulus package likely to get spent is roughly equivalent to the amount Americans are paying for higher food and gas prices because of inflation. Some people had considered splurging on a new TV or a nice vacation, but The Associated Press found that "reality has interfered, in the form of ever-climbing food bills and $4-a-gallon gasoline." AP told the story of a Vermont couple, for example, who deposited their $1,200 into their savings account so they could afford next winter's home heating bills and replace a picture window in their home to make it more efficient. To read the article, click here.

Housing Every three months, 250,000 new families go into foreclosure and things are about to get worse, according to an article in the June issue of Reader's Digest. One economist predicted "the nation's biggest drop in housing prices since the Great Depression." As the housing credit crisis festered, borrowers who need money for other things like home improvements, college tuition or to buy a car also are feeling the ripple effect. Banks and other lenders are making it harder to take out all kinds of loans. "Hundreds of thousands of people about to be thrown out on the street want the government to stand with them," Sanders told the magazine. "That's good for the people. That's good for the economy." To read the Reader's Digest article, click here.

Global Warming Global warming legislation tops the Senate agenda next week. The measure coming to the floor would cap emissions of heat-trapping gases that contribute to global warming. It also would set up a trading program for companies to buy and sell emissions allowances. Sanders sponsored a bill that charts out a more aggressive approach in keeping with what scientists say is necessary. "If we are smart in the process of transforming our energy system we can create millions of good-paying jobs," Sanders said Friday on the nationwide broadcast of Air America Radio's Thom Hartmann Show.