NEW YORK (AP) -- Oil futures soared again Wednesday to a new record near $95 a barrel after the government reported another unexpected drop in crude oil inventories and the Federal Reserve cut interest rates by a quarter point.

Interest rate cuts generally support oil prices because they tend to send the dollar downward; the dollar is already at a record low against the euro. Oil futures have been driven to record levels in recent months partly because they offer a hedge against a weak dollar.

However, many stock and bond investors were disappointed by the Fed's warning that further interest rate cuts weren't assured because of the risks of inflation -- which is being driven in part by higher energy prices. Indeed, oil investors initially seemed unhappy with the Fed's warning. Crude prices dropped as much as a dollar from earlier highs immediately after the decision was announced, before rebounding due to the greater impact of last week's surprise decline in inventories, the second straight unanticipated drop.

Light, sweet crude for December delivery rose $4.15 to settle at $94.53 a barrel on the New York

SAN FRANCISCO (AP) -- Google Inc.'s stock price barreled through $700 for the first time Wednesday, propelled by a belief that the Internet search leader will become even more profitable as it plants its products and services in new markets.

The Mountain View-based company's shares gained $12.23 to finish at a new peak of $707. It took less than a month for the stock to leap from $600 to $700, building upon a fervor that has lifted Google's market value by 34 percent since mid-September.

During that 6 1/2-week stretch, Google has created an additional $55 billion in shareholder wealth. That dwarfs the total $42 billion market value of another Internet icon, Yahoo Inc., which had a 4-year head start on Google.

Through the first 10 months of this year, Google's stock has risen by 54 percent from 2006's closing price of $460.48. The Standard & Poor's 500 index, which includes Google, has gained 9 percent during the same period.

The latest surge came after Google confirmed plans to become a bigger player in the Internet's social

WASHINGTON (AP) -- The Federal Reserve sliced an important interest rate Wednesday -- its second reduction in the last six weeks -- to help the economy survive the strains of a deepening housing slump that is likely to crimp growth in coming months.

Fed Chairman Ben Bernanke and all but one of his colleagues agreed to lower the federal funds rate by one-quarter percentage point to 4.50 percent at the end of a two-day meeting.

"The pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction," the Fed acknowledged in a statement explaining its action.

The funds rate affects many other interest rates charged to millions of individuals and businesses and is the Fed's most potent tool for influencing economic activity.

In response, commercial banks, including Bank of America, Wells Fargo and KeyCorp., announced that they were cutting their prime lending rate -- for certain credit cards, home equity lines of credit and other

Credit was once defined as "Man's Confidence in Man." But in fact, the definition of credit today is more like "Man's Confidence in Himself." Using credit today means you have confidence in your future ability to pay that debt. Forty years ago, your parents may have paid cash for their homes and their cars, a largely unheard-of event today. If they borrowed money at all, chances are it was from a relative or friend, and not a financial institution.

Today debt and instant credit are part of our everyday lives. The convenience of instant credit, however, has taken its toll. Many individuals use credit cards to spend more than they earn, and a few of these people actually build themselves a debt prison from which some never emerge. On the other hand, those who never use credit can be denied a loan or credit when they have a justifiable need or use for it. Using credit establishes a history of financial responsibility: Until you establish a credit history, your chances of qualifying for an important loan, such as a mortgage, are greatly reduced.

What is the balance between using credit wisely and staying out of overwhelming debt? Let's look at the facts and some pros and cons.

Installment Debt

Debt comes in many forms, and most types help us in our daily lives -- when used responsibly. Most people cannot buy a home without some financial help, and many cannot buy a car (especially a new one)

Daily FX
Euro: More Reasons to Hit 1.50
Tuesday October 30, 5:38 pm ET
By Kathy Lien, Chief Strategist strategist@dailyfx.com


Interest rates are not the only reason why the EUR/USD continues to rise. German economic data continues to surprise to the upside with the number of unemployed people dropping by a more than expected 40k in the month of October. This brought the country's unemployment rate down from 8.8 to 8.7 percent, the lowest since 1993.

The Financial Times has extensive coverage today on why German corporations have been able to weather the strain of Euro strength far better than their French and Italian counterparts. According to the articles, more diversification of sales internationally, increased production in local markets and strong domestic demand has the made the country less sensitive to Euro strength. Even the automobile industry which has been extremely hard hit by the strength of the Euro over the past few years (Volkswagen lost EUR1 billion due to currency fluctuations) is shifting production to the US where costs and profits will be less sensitive to currency fluctuations. ECB officials continue to be worried about inflation. Consumer prices are due for release tomorrow; they are expected to remain above the ECB's 2 percent target for the remainder of the year, keeping the central bank hawkish and the Euro on its way to testing 1.50.

NEW YORK (AP) -- The unfolding credit crisis has claimed its biggest corporate casualty so far: Merrill Lynch CEO Stan O'Neal.

The announcement of his departure Tuesday came after the world's largest brokerage posted a $2.24 billion quarterly loss, its biggest since being founded 93 years ago. Merrill Lynch did not name a replacement for O'Neal, whose ouster had been expected, and who leaves the company with benefits worth $161.5 million.

Laurence Fink, the chief executive of investment manager BlackRock Inc., turned down an initial overture from Merrill's board but is in active negotiations, according to a person with direct knowledge of the offer who was not authorized to speak publicly. With the presumed front-runner out of contention, filling the top spot at Merrill Lynch is not expected to be easy given the remaining unknowns from the global credit crisis.

Any replacement will face the daunting task of cleaning up investments in subprime mortgages and other

If you want to make money investing, one of the most important rules is to avoid following the herd when the numbers don't support the hype.

One sign a "herd" mentality has taken over investors is when people proclaim that old, tested investing models no longer apply and use generalities to describe what's going on in the market instead of relying on hard data.

Excessive interest in sometimes risky investments due to insecurity that one might miss out on a hot stock or fund is one of the key ingredients in investment bubbles, according to a July 2006 study by Peter DeMarzo and Ilan Kremer of the Stanford Graduate School of Business, along with Ron Kaniel of Duke University's Fuqua School of Business.

If you have ever wondered why people continue to invest even when it becomes obvious that a stock or fund is risky and a bubble is forming, the study finds that it isn't so much that people believe that they are buying into a good investment, but simply that they are afraid that others will make money on the

OVERLAND PARK, Kan. (AP) -- Shareholders of the bar-and-grill chain Applebee's International Inc. on Tuesday approved a $1.9 billion buyout offer from pancake house operator IHOP Corp.

More than 70 percent of the company's shares voted to approve the agreement, which critics said shortchanged shareholders.

Under terms of the deal, shareholders of Overland Park-based Applebee's will be paid $25.50 per share, a 4.6 percent premium over its closing price on the day before the offer was announced.

Glendale, Calif.-based IHOP is also assuming $155 million in Applebee's debt as part of the deal.

The sale is expected to close by Nov. 29. The combined company would have $6.8 billion in annual sales

SINGAPORE (AP) -- Oil prices dropped Tuesday from a fresh record set on the view that the disruption of one-fifth of the oil production by Mexico's state oil company is only temporary.

Light, sweet crude for December delivery fell 75 cents to $92.78 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.

The contract rose $1.67 to settle at a record $93.53 a barrel Monday, after rising as high as $93.80, a trading record.

The surge was largely driven by news that Mexico's Petroleos Mexicanos, or Pemex, was to temporarily halt as much as 600,000 barrels of daily crude production, due to stormy weather.

But concern over the disruption of supply from Mexico was easing, analysts said.

"It looks like the production will resume in a matter of days, so it's only a temporary disruption," said Victor

Want to get to the top financially? Take advice from those who are already there.

At a glance

Name: Keith Cameron Smith
Hometown: Ormond Beach, Fla.
Education: Calvary Christian Academy, Ormond Beach, Fla.

Career highlights:

● Author of the national best-seller, "The Spiritual Millionaire" and "The Top 10 Distinctions Between Millionaires and the Middle Class"

● Entrepreneur and self-made millionaire at age 33

NEW YORK (AP) -- Oil futures surged to a new record near $94 Monday, propelled by the weak dollar and news that Mexico's state oil company had suspended a fifth of its oil production due to stormy weather.

Crude futures rallied late in the session as the euro rebounded against the dollar, analysts said. The euro hit a record high against the dollar early Monday morning, then declined only to rally back later in the day.

"The dollar seems to be the force that's driving us now," said Phil Flynn, an analyst at Alaron Trading Corp., in Chicago.

The dollar's descent against other major currencies has drawn investors to crude futures as a hedge against the weakening currency and made dollar-denominated oil futures less expensive to people dealing in other currencies, said David Moore, commodities strategist with the Commonwealth Bank of Australia in Sydney.

Oil prices were also supported by news that Mexico's Petroleos Mexicanos, or Pemex, was to temporarily

The dollar hasn't been this low in a decade, but it's headed lower. By the end of 2007, we can expect the dollar to buy 11.6% less versus the euro than it did at the beginning of the year.

As the dollar continues its slide, count on Wall Street to gear up its fear machine.

Any further retreat in the dollar will put the U.S. currency on the edge of unexplored territory. The fall of the U.S. dollar into unknown territory, the argument is likely to go, would break the will of those overseas central banks, from Russia to Saudi Arabia to China, that have been buying dollars to give their countries' exports a competitive edge.

Well, I'm sorry, but I just don't buy that scenario. Wall Street could, of course, scare itself into a dollar rout because many of the folks who work there are so traumatized by the crises in the markets for mortgages and for buyout loans that they're likely to jump at shadows, even when the shadows are of

For employees of educational institutions and certain nonprofit organizations, the 403(b) plan can be a key element in their retirement-saving strategy. Employer-sponsored 403(b) plans allow participants to contribute pretax dollars into a retirement savings account, then withdraw funds when they retire, permitting account earnings to grow on a tax-deferred basis. Similar to their private sector counterparts, 401(k) plans, 403(b) plans have a variety of rules that govern contributions, withdrawals, and other factors that current and potential participants should be aware of.

Eligibility

403(b) plans are available to employees of educational institutions and certain nonprofit organizations that offer a plan. Plan participants include teachers, school administrators, professors, and doctors and nurses, among others.

Contributions

Contributions to a 403(b) plan can consist of pretax employee contributions, after-tax employee contributions, and employer contributions. Amounts contributed to a 403(b) plan and earnings thereon are not subject to income tax until withdrawn. For 2007, participants in a 403(b) plan can contribute up to

The Roth IRA, available since 1998, presents a potentially attractive alternative to the regular IRA long favored by many Americans as a cornerstone in their retirement planning efforts. That's because a Roth IRA may allow you to avoid future taxation of your retirement funds by making nondeductible contributions now.

Rules of the Roth IRA

Following is a summary of the rules for Roth IRAs:

Unlike the traditional IRA, contributions to a Roth IRA are nondeductible regardless of your income level or participation in a company-sponsored retirement plan.

Your contributions are limited to $4,000 a year ($8,000 for couples) in 2006. The contribution limit begins to decline or "phase out" for single taxpayers with adjusted gross incomes (AGIs) of more than $95,000 and for married couples filing jointly with AGIs of more than $150,000. Individuals with AGIs in excess of $110,000 ($160,000 for married couples filing jointly) are not eligible for a Roth IRA. Married taxpayers filing separately are not allowed to contribute to a Roth IRA. An individual's total contributions

In America today, carrying some debt is unavoidable, and even desirable, for most households. But between mortgages, car payments, and credit cards, many Americans find themselves over their heads -- unable to dig out from under a growing debt burden that consumes an ever growing portion of their resources.

The average U.S. household now has credit card debt of more than $9,300. Credit card companies have made running up that balance deceptively convenient. What's lost when you're on that spending spree is the realization that paying off your debt can be costly, in terms of both cash on hand and your overall financial health.

Assessing Your Debt

How much debt is too much? The figure varies from person to person, but in general, if more than 20% of your take-home pay goes to finance nonhousing debt or if your rent or mortgage payments exceed 30% of your monthly take-home pay, you may be overextended.

Other signs of overextension include not knowing how much you owe, constantly paying the minimum