Ask It Early: Saving For College
CBS News financial columnist Ray Martin reports on 529s and other vehicles to save for your kids' college, as well as when and how to start saving.
All Blog Posts from Econwatch
Read all 'savings' posts in Econwatch
September 18, 2009 9:31 AM
August 28, 2009 12:00 PM
Taxpayer Trading Strategy: Short FDIC Long TARP
The FDIC insurance fund that’s intended to protect over $6 trillion of depositor assets, has dropped to the lowest level since the savings and loan crisis in 1993. That’s not actually surprising or all that scary. Any of us could have done the math: the fund was worth over $45B last year at this time and since then, the financial world nearly melted down. This year alone, 81 banks have failed, requiring the FDIC to pony up money from its coffers and cover the losses for depositors.
FDIC Chairman Sheila Bair is probably not happy to go from $45 billion to $10.4 billion, but as she reminded us yesterday–the FDIC is backed by the US government and has access to up to $100 billion from the Treasury. The other point that Bair makes when speaking in public or before the media is that no depositor who has banked with an FDIC-insured institution has every lost a penny of his or her money since FDIC was created in 1933. That’s a pretty good track record!
I’m a bit more concerned about the second part of the report: there were 416 banks on the FDIC “problem” list at the end of last quarter. These black sheep banks accounts for nearly $300 billion worth of assets. That’s a number that can take your breath away if you ponder it for too long.
FDIC Chairman Sheila Bair is probably not happy to go from $45 billion to $10.4 billion, but as she reminded us yesterday–the FDIC is backed by the US government and has access to up to $100 billion from the Treasury. The other point that Bair makes when speaking in public or before the media is that no depositor who has banked with an FDIC-insured institution has every lost a penny of his or her money since FDIC was created in 1933. That’s a pretty good track record!
I’m a bit more concerned about the second part of the report: there were 416 banks on the FDIC “problem” list at the end of last quarter. These black sheep banks accounts for nearly $300 billion worth of assets. That’s a number that can take your breath away if you ponder it for too long.
July 28, 2009 3:40 PM 
Yesterday I scolded Wall Street for not learning lessons from the housing and credit bubbles. For the rest of us, the news is actually pretty good–it seems that the longest post-World War II recession has knocked some sense into us!
Based on consumer confidence polls as well as hard data, Americans have shifted many of their former bad habits. Let’s hope that these are long-term trends, rather than reactionary blips!
5 Lessons We've Learned from the Recession
(AP / CBS)
Based on consumer confidence polls as well as hard data, Americans have shifted many of their former bad habits. Let’s hope that these are long-term trends, rather than reactionary blips!
May 22, 2009 6:16 PM 
Ever since the extent of this economic crisis became clear, Washington politicians have been informing us that keeping a torrent of credit flowing to consumers and businesses justifies government bailouts and other extraordinary measures.
President Obama recently pledged to "focus on restoring the flow of credit that is the lifeblood of a growing global economy." House Majority Leader Steny Hoyer, a Democrat, said during the debate over last fall's TARP bailout that, without it, "credit, the lifeblood of any economy, might dry up across America." And the Treasury Department claims to be ensuring that credit is "flowing again to entrepreneurs and business owners."
Yet Mr. Obama signed legislation this afternoon that levies a slew of new regulations on credit card companies -- which lenders say will actually reduce the availability of credit. That's from no less an authority than American Express CEO Kenneth Chenault, who said his concern is with "credit being available, particularly to consumers who need it," according to Bloomberg.
Which, if you've been following along so far, is exactly the opposite of what Mr. Obama and his political allies say they wanted to achieve.
Will New Law Make Credit Cards More Expensive?
(AP )
Ever since the extent of this economic crisis became clear, Washington politicians have been informing us that keeping a torrent of credit flowing to consumers and businesses justifies government bailouts and other extraordinary measures.
President Obama recently pledged to "focus on restoring the flow of credit that is the lifeblood of a growing global economy." House Majority Leader Steny Hoyer, a Democrat, said during the debate over last fall's TARP bailout that, without it, "credit, the lifeblood of any economy, might dry up across America." And the Treasury Department claims to be ensuring that credit is "flowing again to entrepreneurs and business owners."
Yet Mr. Obama signed legislation this afternoon that levies a slew of new regulations on credit card companies -- which lenders say will actually reduce the availability of credit. That's from no less an authority than American Express CEO Kenneth Chenault, who said his concern is with "credit being available, particularly to consumers who need it," according to Bloomberg.
Which, if you've been following along so far, is exactly the opposite of what Mr. Obama and his political allies say they wanted to achieve.
