Using Tax-free Funds For Health Expenses
CBS News financial guru Ray Martin gives advice on how to use tax-free funds for health expenses. He compares health savings accounts vs. flexible spending accounts.
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Read all posts by CBSNews.com in Econwatch
September 25, 2009 10:08 AM
September 11, 2009 10:59 AM
How To Fix Your Credit Score
In today's "Ask It Early" segment, CBS' Priya David, Cali Carlin and financial adviser Ray Martin discuss what elements go in to determining your FICO score, and steps you can take to improve your credit rating
Watch CBS Videos Online
Watch CBS Videos Online
August 24, 2009 11:47 AM 
By Cait Murphy of CBS MoneyWatch.com.
On the sidewalks of the far west side of Manhattan, two well-dressed car salesmen are taking a break. Have they noticed a difference in their business since the government's "cash for clunkers" program began in July? "Oh, yes," says one, waving his cigarette. "Totally," echoes his colleague, between drags. "There was nothing going on before, and now we're being run off our feet."
Their bosses, who do not allow sales people to speak to reporters, would doubtless agree. Both Ford and GM gave the Car Allowance Rebate System (CARS), which gives vouchers worth up to $4,500 to consumers who trade in gas-guzzling cars for more fuel-efficient models, credit for a nice little boost. And certainly it's been great for the guys on the front lines. "We needed a shot in the arm and this is it," says Cody Lusk, president of the American International Automobile Dealers Association. "The problem was everyone had been sitting in the sidelines. It was like a flower wilting; cash for clunkers was like sprinkling a little water and the flower begins to revive."
Video >> Can Car Makers Survive Without Cash for Clunkers?
Certainly the program, which ends today, was popular. The first $1 billion, which was supposed to last for months, was accounted for in less than a week. Congress, with a little grumbling from those worried about the cost, quickly poured in another $2 billion on Aug. 6. At a fundamental level, though, what did the cash for clunkers program really achieve?
"Cash For Clunkers": Did It Work?
(AP Photo/Darron Cummings)
On the sidewalks of the far west side of Manhattan, two well-dressed car salesmen are taking a break. Have they noticed a difference in their business since the government's "cash for clunkers" program began in July? "Oh, yes," says one, waving his cigarette. "Totally," echoes his colleague, between drags. "There was nothing going on before, and now we're being run off our feet."
Their bosses, who do not allow sales people to speak to reporters, would doubtless agree. Both Ford and GM gave the Car Allowance Rebate System (CARS), which gives vouchers worth up to $4,500 to consumers who trade in gas-guzzling cars for more fuel-efficient models, credit for a nice little boost. And certainly it's been great for the guys on the front lines. "We needed a shot in the arm and this is it," says Cody Lusk, president of the American International Automobile Dealers Association. "The problem was everyone had been sitting in the sidelines. It was like a flower wilting; cash for clunkers was like sprinkling a little water and the flower begins to revive."
Video >> Can Car Makers Survive Without Cash for Clunkers?
Certainly the program, which ends today, was popular. The first $1 billion, which was supposed to last for months, was accounted for in less than a week. Congress, with a little grumbling from those worried about the cost, quickly poured in another $2 billion on Aug. 6. At a fundamental level, though, what did the cash for clunkers program really achieve?
July 8, 2009 7:06 PM
Time for a Second Stimulus?
CBS Evening News' Nancy Cordes reported Wednesday on a House oversight committee hearing on President Obama's economic stimulus package. The hearing comes after a report showed that the stimulus funds are being used for day-to-day operations in many states and not reaching the poor and jobless areas that need them most.
Some Democrats are talking about seeking a second stimulus even as the defend the first, but Republicans are staunchly opposed. CBS Moneywatch.com editor-at-large Jill Schlesinger joined Evening News anchor Katie Couric to discuss the possibility of a second stimulus and more.
Some Democrats are talking about seeking a second stimulus even as the defend the first, but Republicans are staunchly opposed. CBS Moneywatch.com editor-at-large Jill Schlesinger joined Evening News anchor Katie Couric to discuss the possibility of a second stimulus and more.
June 4, 2009 9:14 PM 
Legislation currently moving through Congress aims to create thousands of new jobs and stimulate the U.S. economy by attracting international tourists, at no cost to taxpayers. Called the Travel Promotion Act (TPA), the proposed bill would collect a $10 fee from travelers coming to the United States. Coupled with private contributions, these fees would fund a promotion campaign abroad to help attract international visitors.
Last month, the bill cleared a Senate sub-committee and it enjoys broad, bipartisan support. The House unanimously passed a similar bill last September, but due to the financial crisis the Senate never got around to voting on it (among the supporters were then-senators Barack Obama, Hillary Clinton and Joe Biden).
Thursday morning, Senate Majority Leader Harry Reid, one of the bill’s 22 co-sponsors, said it is one of the bills he plans to get through before the summer recess. If successful, the TPA could serve as an eleventh-hour stimulus for the U.S. travel industry where business is down and layoffs are up.
"Right now, we are going through the roughest time ever," said Roger Dow, the President and C.E.O. of U.S. Travel Association. The economic recession and swine flu fears are among the obvious culprits, along with more abstract problems like post-Sept. 11 travel fears and what’s being called the "AIG effect"—companies scared to spend money on corporate travel or off-site conferences.
Giving The Travel Industry A "Bailout"
(CBS/AP)
Last month, the bill cleared a Senate sub-committee and it enjoys broad, bipartisan support. The House unanimously passed a similar bill last September, but due to the financial crisis the Senate never got around to voting on it (among the supporters were then-senators Barack Obama, Hillary Clinton and Joe Biden).
Thursday morning, Senate Majority Leader Harry Reid, one of the bill’s 22 co-sponsors, said it is one of the bills he plans to get through before the summer recess. If successful, the TPA could serve as an eleventh-hour stimulus for the U.S. travel industry where business is down and layoffs are up.
"Right now, we are going through the roughest time ever," said Roger Dow, the President and C.E.O. of U.S. Travel Association. The economic recession and swine flu fears are among the obvious culprits, along with more abstract problems like post-Sept. 11 travel fears and what’s being called the "AIG effect"—companies scared to spend money on corporate travel or off-site conferences.
June 3, 2009 10:22 AM 
Testifying before the before the House Budget Committee, Federal Reserve Chairman Ben Bernanke urged Congress and the Obama administration Wednesday to start plotting a strategy to curb record-high U.S. budget deficits.
"Even as we take steps to address the recession and threats to financial stability, maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance," Bernanke said.
Bernanke: Time To Act On Red Ink
(AP Photo/Susan Walsh)
"Even as we take steps to address the recession and threats to financial stability, maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance," Bernanke said.
June 1, 2009 5:40 PM 
This story was written by Prerana Swami and Anna Aulova.
Although GM announced less than 24 hours ago that it would file for bankruptcy, the debate over governmental involvement in one of America's largest auto companies has long been raging online.
As far back as November 2008, NYU Law Professor Michael E. Levine was calling for bankruptcy for the company in the Wall Street Journal, stating that it was the best option for the auto giant.
"GM as it is cannot survive without long-term government life support. If it gets that support, it can't change enough and won't change fast enough," Levine wrote."It's the only option that merits public support and actually has a chance at succeeding.”
After the announcement Monday, many took to the blogs to express their views and their hopes for the auto giant.
In an editorial for the Huffington Post, the Michigan-born filmmaker Michael Moore bid a farewell to GM 20 years after his documentary "Roger And Me," which detailed Moore's efforts to confront then-GM CEO Roger Smith about the closure of a plant in Flint, Michigan, was released.
Nader, Moore, Others Respond To GM News
(AP)
Although GM announced less than 24 hours ago that it would file for bankruptcy, the debate over governmental involvement in one of America's largest auto companies has long been raging online.
As far back as November 2008, NYU Law Professor Michael E. Levine was calling for bankruptcy for the company in the Wall Street Journal, stating that it was the best option for the auto giant.
"GM as it is cannot survive without long-term government life support. If it gets that support, it can't change enough and won't change fast enough," Levine wrote."It's the only option that merits public support and actually has a chance at succeeding.”
After the announcement Monday, many took to the blogs to express their views and their hopes for the auto giant.
In an editorial for the Huffington Post, the Michigan-born filmmaker Michael Moore bid a farewell to GM 20 years after his documentary "Roger And Me," which detailed Moore's efforts to confront then-GM CEO Roger Smith about the closure of a plant in Flint, Michigan, was released.
June 1, 2009 11:02 AM 
With the news of General Motors' historic bankruptcy this morning, we asked CBS Evening News business producer Guy Campanile to provide some perspective by answering the following five key questions about the storied automaker, the whole car industry and the greater economy:
1) How will GM survive all this negative publicity in terms of getting future customers to buy their cars?
GM's ability to win back consumers scared off by bankruptcy depends on the speed of the bankruptcy case. The Obama Administration would like to see a debt-free and smaller GM spin out of the courts by September.
The trick in the car business is to get rational people to spend money for an irrational thing. Remember -- all a car or truck really does is provide transportation. The auto industry makes money by convincing consumers that they require leather interiors, sunroofs, sculpted lines and a killer sound system to feel good about making those trips.
People are unwilling to lay out the $25,000 required to buy such amenities if they are dubious about the sustainability of a car company. People typically own cars for 5 years or more. That's a commitment that must be supported by confidence in the brand. GM will have no chance at convincing people to buy its brand unless it quickly gets back to the business of building profitable cars and trucks in North America.
2) What does this bankruptcy mean for the rest of the auto industry?
The American auto industry as we knew essentially ended today. The auto making behemoth that was General Motors is dead. It is now a government-owned ward of the bankruptcy courts. Chrysler is part of an international car company (FIAT).
Only Ford remains as a fully independent American automaker. How Ford takes advantage of its strong position is unclear. They could play-up the fact that they are the last survivor on the island. But they could risk alienating many consumers. Of course, the economy could get worse and Ford may find itself in the same boat as its Detroit cousins.
Ultimately we are looking at an industry that is not American, Japanese, Korean or German. The new reality is that cars are made in bits and pieces all around the world by companies that are capitalized by investors all around the world. The modern auto industry is now truly a global affair with a far more nebulous national character.
Five Key Questions On GM Bankruptcy
(AP Photo/Paul Sancya)
1) How will GM survive all this negative publicity in terms of getting future customers to buy their cars?
GM's ability to win back consumers scared off by bankruptcy depends on the speed of the bankruptcy case. The Obama Administration would like to see a debt-free and smaller GM spin out of the courts by September.
The trick in the car business is to get rational people to spend money for an irrational thing. Remember -- all a car or truck really does is provide transportation. The auto industry makes money by convincing consumers that they require leather interiors, sunroofs, sculpted lines and a killer sound system to feel good about making those trips.
People are unwilling to lay out the $25,000 required to buy such amenities if they are dubious about the sustainability of a car company. People typically own cars for 5 years or more. That's a commitment that must be supported by confidence in the brand. GM will have no chance at convincing people to buy its brand unless it quickly gets back to the business of building profitable cars and trucks in North America.
2) What does this bankruptcy mean for the rest of the auto industry?
The American auto industry as we knew essentially ended today. The auto making behemoth that was General Motors is dead. It is now a government-owned ward of the bankruptcy courts. Chrysler is part of an international car company (FIAT).
Only Ford remains as a fully independent American automaker. How Ford takes advantage of its strong position is unclear. They could play-up the fact that they are the last survivor on the island. But they could risk alienating many consumers. Of course, the economy could get worse and Ford may find itself in the same boat as its Detroit cousins.
Ultimately we are looking at an industry that is not American, Japanese, Korean or German. The new reality is that cars are made in bits and pieces all around the world by companies that are capitalized by investors all around the world. The modern auto industry is now truly a global affair with a far more nebulous national character.
May 21, 2009 4:30 PM
AIG's CEO To Step Down
American International Group Inc. says its chairman and chief executive plans to step down when a search for replacements is complete.
The company also says its board agrees with a recommendation from Edward Liddy, who took over the troubled insurer in September, to separate the chairman and CEO roles.
The company also says its board agrees with a recommendation from Edward Liddy, who took over the troubled insurer in September, to separate the chairman and CEO roles.
April 23, 2009 4:57 PM
Senators Want Emergency Credit Card Rate Freeze
This post was written by Stephanie Condon.
While President Obama met today with executives from the leading credit card companies, two senators called on the Federal Reserve to immediately implement an emergency freeze on interest rates tied to existing balances on credit cards.
The Federal Reserve plans to implement a new set of rules for credit card lending beginning July 2010, but that is too long to wait, Senators Chris Dodd (D-Conn.) and Chuck Schumer (D-N.Y.) said in a letter sent today to Federal Reserve Chairman Ben Bernanke and other regulators. Companies are increasing interest rates now before the new rules go into effect, they said.
"Consumers describe situations to our offices in which the interest rates on their accounts have doubled or tripled overnight, without any misconduct on their part," the letter says. "This kind of practice clearly violates the spirit and intention of the rules, even if the delayed implementation date has the effect of making such behavior legal."
While President Obama met today with executives from the leading credit card companies, two senators called on the Federal Reserve to immediately implement an emergency freeze on interest rates tied to existing balances on credit cards.
The Federal Reserve plans to implement a new set of rules for credit card lending beginning July 2010, but that is too long to wait, Senators Chris Dodd (D-Conn.) and Chuck Schumer (D-N.Y.) said in a letter sent today to Federal Reserve Chairman Ben Bernanke and other regulators. Companies are increasing interest rates now before the new rules go into effect, they said.
"Consumers describe situations to our offices in which the interest rates on their accounts have doubled or tripled overnight, without any misconduct on their part," the letter says. "This kind of practice clearly violates the spirit and intention of the rules, even if the delayed implementation date has the effect of making such behavior legal."
Author Thomas Friedman on Obama's Afghanistan plan and the war on terror.
