"The role of the government, it seems to me, is to make sure that dreamers are rewarded for their hard work and their ingenuity and success. And the best way to do that is to reduce taxes on people," Bush said.

White House advisers, who think the president should get more credit for recent positive economic news, insist that Bush is not trying to change the subject away from the unpopular war. The president will continue to talk about Iraq and the war on terrorism as the Nov. 7 election nears, they said.

Eighty-eight percent of likely voters say the economy is an important issue - on a par with the percentage of people who view the situation in Iraq and terrorism as crucial matters, according to an Associated Press-Ipsos poll earlier this month. The poll found that 37 percent of likely voters say they approve of Bush's handling of Iraq overall. More voters - 42 percent - approve of his handling of the economy.

Overall, the economy grew at a 2.6 percent pace from April through June, compared with a 5.6 percent pace over the first three months of the year, which was the strongest spurt in 2 1/2 years. Still, voters remain uneasy even though gasoline prices have started dropping, the stock market is hitting record highs, and interest rates on credit cards and adjustable mortgages are leveling off.

Rising hopes for strong third-quarter earnings lifted the Dow Jones industrial average past 12,000 for the first time on Wednesday. The Conference Board's index of U.S. leading economic indicators rose last month, and the government reported last week that consumer prices fell in September by the largest amount in 10 months.

Democrats contend the middle class isn't enjoying the benefits of recent U.S. economic gains. They say sluggish median earnings show paychecks have failed to keep pace with inflation, and they note rising health care and energy costs.

White House political director Sara Taylor said that the economy is a key issue in about two dozen House races, including campaigns in Pennsylvania, Minnesota, Ohio and Washington state. Democrats need a 15-seat pickup to regain the House and a gain of six seats to reclaim the Senate.

"It's going to have an important impact on certain races around the country," Taylor said. "I think it's an important issue that's not getting a ton of attention."

Bush participated in a round-table with three small- to medium-sized businesses that have taken advantage of community banking services to expand in the Washington area. The event was held at Urban Trust Bank. The bank, set up to provide mortgages, student loans and investment opportunities mainly to minorities, was founded by Robert Louis Johnson, who started BET - formerly Black Entertainment Television.

On Tuesday, the president will speak about the economy again at a campaign appearance in Sarasota, Fla., for businessman Vern Buchanan, who is in a tight House race against Democrat Christine Jennings, a former bank executive. The prospect of losing Florida's conservative 13th District to Democrats brought high-profile Republicans - Gov. Jeb Bush, Sen. Mel Martinez and Massachusetts Gov. Mitt Romney - to the area last week.

But Exxon did score one huge victory when the new administration of George W. Bush and Dick Cheney, close Exxon allies, withdrew U.S. support for Kyoto. The withdrawal of the U.S., which emits roughly one-quarter of the world's greenhouse gases, was a devastating blow. Still, the world community pressed on with Kyoto.

Into this titanic, ongoing struggle between the world community and the Bush-Cheney-Exxon axis of oil, Canada has now definitively entered on the side of the oil interests.

With the release last week of the Harper government's "clean air" bill, Ottawa has signalled its abandonment of Kyoto.

The previous Liberal government certainly shares some of the blame.

While it signed onto Kyoto and renewed that commitment last year, it failed to take meaningful steps to reach Kyoto targets, recklessly allowing Canada's greenhouse gas emissions to continue to rise.

But Harper's "green" plan is the final nail in the coffin for Canada's Kyoto commitment. The plan doesn't even mention Kyoto, instead calls for yet more consultations with industry and sets actual reduction targets an incredible 44 years into the future. By then, presumably even industry will be sick of consulting.

It won't matter much though, since the earth will almost certainly have warmed to the point where the damage will be irreversible.

Even the much more demanding deadlines set out in the Kyoto Protocol are a long shot at reversing the horrendously destructive course we're on, before it's too late. It now seems Canada will be the only nation failing to meet targets it agreed to in signing Kyoto.

This lackadaisical approach to the world's most urgent problem is utterly consistent with Harper's long-time indifference to the global warming crisis.

Like others close to the oil industry, Harper has tried to discredit the scientific conclusion that human actions are causing global warming - a conclusion which virtually every climate scientist in the world considers about as open-and-shut as the case that smoking causes cancer.

Harper knows the Canadian public, particularly in Quebec, wants action, but that means clamping down on Canada's fastest growing source of greenhouse gases: Alberta's booming oil sands. And Harper has absolutely no intention of getting tough on the oil industry.

Harper has now clearly shown which side he's on.

But he's hoping we'll be so dazzled by his talk of a "green" plan for "clean air" that we won't notice the Bush-Cheney-Exxon axis lurking in the background.

Dow component Wal-Mart Stores Inc., which pleased investors by announcing plans to cut capital spending to improve profits, helped the blue chips to their new high. The Dow's record came just three trading days after its first move past 12,000.

Strength from International Business Machines Corp., Hasbro Inc., and Xerox Corp. also fed the advance. Just halfway through the third- quarter earnings season, companies' generally upbeat reports have given investors a renewed sense of security about the future.

"The blue chips have absolutely outperformed most markets, and this was an extension of that trend," said Steven Goldman, chief market strategist at Weeden & Co. "I don't think things are overdone. Investors are looking ahead thinking an economic slowdown is forthcoming, and its safer to get into household names and not new companies."

Blue chips resumed a three-month rally Monday after stalling Friday; the Dow had already risen 233 points in October before Monday's trading. The average also reached a new trading high Monday of 12,125.16.

The Dow Jones industrial average rose 114.54, or 0.95 percent, to 12,116.91.

With investors favoring blue chips, analysts appeared satisfied that the market wasn't getting ahead of itself. The advance in the broader market was still narrow, and Goldman said he expects any future selloffs will be restrained to under a few percent.

The Standard & Poor's 500 index rose 8.42, or 0.62 percent, to 1,377.02, and the Nasdaq composite index rose 13.26, or 0.57 percent, to 2,355.56.

Monday's gains came despite some concerns about the Federal Reserve's two-day meeting on interest rates, which starts Tuesday. Policymakers are expected to leave interest rates unchanged, though they could sound a hawkish tone in their accompanying economic assessment because of recent signs of rising inflation.

Treasury bonds fell on speculation the Fed will keep its benchmark rate at 5.25 percent, which is still at its highest level in more than five years. Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.83 percent form 4.79 percent on Friday.

The dollar was mixed against other major currencies, while gold prices fell.

The price of oil, which fell to lows for the year Friday from its mid- July highs, is making investors more bullish on sectors like retail, which will benefit if consumers have more spending money. Doubts that OPEC members would follow Saudi Arabia's lead to curb output pushed a barrel of light sweet crude lower by 52 cents to $58.81 on the New York Mercantile Exchange.

"The picture being painted is pretty easy to suggest that the pressure on the economy from higher oil prices is easing," said Richard E. Cripps, chief market strategist at Stifel Nicolaus.

Wal-Mart, the world's largest retailer, said it will be more selective about where it will open stores, though it still plans 600 new locations next year. The retailer, which has been pushed by Wall Street to be more prudent in its expansion, was the Dow's biggest advancing stock.

The company said in a meeting with investors that it plans to bring costs in line with a slowdown in its sales and earnings growth. The move is expected to boost return on investment, and sent shares up $1.91, or 3.9 percent, to $51.28.

IBM was the Dow's second-biggest advancer. The technology company filed two patent infringement lawsuits against online retailer Amazon.com Inc. over technologies used to run Internet services.

Big Blue rose $1.08 to $91.56, while Amazon added 31 cents to $32.88.

AT&T Inc. rose 27 cents to $34.71 after reporting third-quarter profit rose 74 percent to exceed Wall Street projections. The telecommunications company said its quarter was boosted by strong growth at its Cingular Wireless unit.

Ford Motor Co. fell 11 cents to $7.90 after posting its largest quarterly loss in more than a decade. The troubled automaker's took a massive charge during the period to cover a restructuring plan that will shutter 16 plants and cut as many as 45,000 jobs.

Hasbro Inc. rose $2.03, or 8.7 percent, to $25.33 after the toy maker reported an 8.2 percent increase in its third-quarter profit amid strong sales of brands such as Playskool. Meanwhile, Xerox Corp. rose 47 cents, or 3 percent, to $16.47 after its third-quarter profit beat analysts' expectations.

Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where consolidated volume came to 2.47 billion shares, compared with 2.57 billion Friday.

The Russell 2000 index of smaller companies rose 1.39, or 0.18 percent, to 763.52.

Overseas, Japan's Nikkei stock average closed up 0.82 percent. Britain's FTSE 100 closed up 0.18 percent, Germany's DAX index rose 0.65 percent, and France's CAC-40 advanced 0.68 percent.

He allowed Skilling, 52, to remain out of jail, but mostly confined to his home with an electronic monitor on his ankle until the U.S. Bureau of Prisons orders him to report, likely within the next 90 days.

Skilling also was ordered to pay $45 million in restitution to Enron investors, who lost billions of dollars when the company collapsed. Thousands of employees lost their jobs and retirement funds.

FBI assistant director Chip Burrus said in a statement Skilling's punishment sent a message to white collar criminals.

"Corporate crooks should beware. If you decide to use business coffers as your personal piggy bank at the expense of investors and employees, you risk loss of personal freedom," he said.

Judge Lake's sentence of 24 years and four months was the lowest it could have been within federal guidelines for the white collar crime.

Skilling, once one of corporate America's brightest and brashest stars, was subdued but stoic, telling reporters he was "disappointed" by the verdict but would appeal the 19 criminal counts against him.

"I don't blame the judge for what he did. I have a constitutional right to appeal, and I think we'll win," he said.

Skilling showed little emotion during the hearing, but occasionally looked back at wife, Rebecca, who sobbed in the gallery.

On May 25, Skilling and Enron founder Ken Lay were found guilty of defrauding investors by using off-the-books deals to hide debt and inflate profits.

Enron, once the country's seventh largest company, collapsed into bankruptcy in December 2001 when the deals were disclosed.

The resulting scandal rocked Wall Street and prompted reforms in the way companies report their finances.

Lay, 64, died of a heart attack in July while vacationing in Colorado. Following legal precedent, Judge Lake threw out the Lay convictions on October 17 because Lay died before a final judgment had been entered and before he could appeal.

In comments to the court before sentencing, Skilling said he was remorseful for what happened at Enron, but maintained he had committed no crime.

"I can't imagine more remorse. I had friends who died, good men," he said, appearing to choke up momentarily. "All of that being said, your honor, I'm innocent of these charges. I'm innocent of every one of these charges."

As he did in testimony during his trial, Skilling blamed the demise of Enron on a credit and liquidity crunch.

"The company did not have enough dry powder to deal with it. That, in sum and substance, is what happened in Enron," he said.

He and Lay testified that the crisis of confidence that engulfed Enron was caused by the actions of a few rogue employees, primarily former chief financial officer Andrew Fastow.

Fastow confessed to skimming millions of dollars from the off-the-books deals he set up at Skilling's direction. He pleaded guilty, cooperated with prosecutors and received a six-year prison sentence.

Prior to sentencing, several former Enron investors and employees made "victim impact statements" in which most of them called for Lake to impose the maximum sentence, which would have been just over 30 years.

"The worst mistake Ken Lay ever did was to hire you," former employee Ann Beliveaux told Skilling. "When things got bad, you jumped ship because you knew the sky was getting ready to fall."

"I had $1.3 million and all I have to show for it is two clocks (for service awards)," said another former employee Charles Prestwood.

"People think things like that don't happen in America, but it does. It happened to us," he said.

Skilling joins other prominent executives whose corner-office careers ended in prison cells. WorldCom founder Bernard Ebbers received a 25-year sentence, former Tyco chairman Dennis Kozlowski got 8 to 25 years, and John and Timothy Rigas of Adelphia received 15 and 20 year sentences, respectively.

Prosecutor Sean Berkowitz argued for a long sentence for Skilling, saying that Enron's demise had wide-ranging effects.

"The integrity of the marketplace as a whole was shaken by what happened at Enron," he said. "People lost their trust and their faith in the marketplace.

"Enron symbolized more than any other company the era of corporate fraud," Berkowitz said.

But Skilling's attorney Daniel Petrocelli argued for a sentence of 7 to 10 years, saying Skilling had meant no harm.

"Mr. Skilling set out to harm nobody. He didn't loot the company, he didn't engage in self-dealing ... he was not motivated by greed," he said.

Acquiring a property in France was once a luxury for rich Brits seeking a pied-a-terre on the Côte d'Azur on the Mediterranean, in the rural paradise of the Dordogne in the west, and to a lesser degree in Normandy across the English Channel, as well as in Paris.

But the past decade has seen thousands of ordinary British mortals take advantage of the strong pound and low cost flights to buy a piece of France, says Sébastien Duquesne, head of development at UCB International Buyers, which belongs the BNP Paribas banking group.

British people now own EUR 6.83 billion worth of property in France and have bought 51,000 houses here since 2000.

They represent 48 percent of all non-residents who have bought in France, way ahead of citizens of Benelux - Belgium, Netherlands and Luxembourg - at 13 percent, and Italians at 10 percent, according to a study by Crédit Foncier.

Also, the number of British people who live permanently in France has doubled in the past five years to 100,000 people, according to the last census in 2004 by the Insee statistical institute.

The 'roastbeefs', as the British are nicknamed by the French, are attracted to their nearest continental neighbour's way of life, healthcare, sunshine, and cuisine as well relatively lower property prices, said François Drouin, president of Crédit Foncier.

Aware of the new trend, BNP Paribas in 2004 bought Abbey National France, a subsidiary of the British Abbey National, specialised in housing loans for non-resident English speakers.

French banks have also started adapting to British demands for more flexible services such as variable mortgage rates or interest-only mortgages which are rarely available to French customers.

Some go even further, offering to guide potential buyers through the purchasing process from start to finish.

To this end, Barclays France last Monday launched an Internet site to advise Brits wishing to invest in France.

Crédit Foncier offers services ranging from a bilingual advisor for a day to managing an electricity subscription or taking care of an unoccupied second home.

BNP Paribas has opened five branches for foreign clients in the regions of France considered the most popular for British investors. Financial advice is available from a bilingual advisor who can reply to "legal and fiscal questions that are raised when we buy property abroad," Duquesne said.

The average price of a property in Britain is EUR 283,825, compared with EUR 176,000 in France, according to an annual study by Era Immobilier estate agents, published at the end of September.

But on average, Brits spend less money than other nationalities on their property in France - less than EUR 200,000 - because they prefer to buy houses that are run down which they can restore.