Pentagon seeks $190 billion for Iraq, Afghanistan in 2008; Defense stocks hit new highs

Above: Marines with the Regimental Combat Team 6 move through a scrap yard while on patrol in Fallujah last week.

Gates Seeks $190 Billion for Wars

Defense Secretary Robert Gates asked Congress Wednesday to approve nearly $190 billion for the wars in Iraq and Afghanistan in 2008, increasing initial projections by more than a third...

In February, President Bush requested $141.7 billion for the wars; officials said at the time the figure was only a rough estimate and could climb. In July, the Defense Department asked Congress for another $5.3 billion to buy 1,500 Mine Resistant Ambush Protected (MRAP) vehicles.

Gates said Wednesday another $42 billion is needed to cover additional unforeseen requirements. The extra money includes:

-- $11 billion to field another 7,000 MRAP vehicles in addition to the 8,000 already planned;

-- $9 billion to reconstitute equipment and technology;

-- $6 billion for training and equipment of troops;

-- $1 billion to improve U.S. facilities in the region and consolidate bases in Iraq; and

-- $1 billion to train and equip Iraqi security forces.

Read the rest at the San Francisco Chronicle

Defense stocks hit new highs as Pentagon seeks $42 billion

Defense stocks on Wednesday hit new highs as Defense Secretary Robert Gates requested an extra $42 billion in funding from Congress to cover military costs in Iraq and Afghanistan in 2008.

The AMEX Defense Index, which tracks 14 major defense company stocks, rose 14.25 to a high of 1,686.72 in afternoon trading. Since last year, the index has risen roughly 47 percent, outperforming the broader S&P 500 index, which has climbed nearly 15 percent over the same period.

Although the anticipated request for more funding does not come as a surprise to Wall Street, the Pentagon's message nevertheless reinforces the idea that defense spending will remain high in the near-term, said Myles Walton, a CIBC World Market Corp. analyst.

Read the rest at AOL News

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