Forget the credit crunch and mortgage crisis for a moment. What about rising oil prices? So far, the economy has shaken off high prices at the pump, no problemo. But what if oil his $100 or more? Don't fret, says Jim Glassman of JPMorgan:

1) The sticker shock related to $90-$100 oil won't spark new alarms. That's because, for all intents and purposes, consumers already saw $100 per barrel oil this spring, when large numbers of refineries shut down for a long-needed maintenance, gasoline prices spiked above $3.00 per gallon, and retail margins temporarily widened to unprecedented levels.

2) Today's economy is better able to absorb the rise in the relative price of energy, because it is more flexible, it is still relatively strong, and we use energy far more efficiently than we once did so that oil is not as important as it once was. In addition, contrary to popular opinion, oil may be a "tax" initially, for consumers and net oil consuming countries, but eventually oil revenues get spent—recycled—if not in the spending stream, into financial markets.

3) $100 oil implies that [3 trillion] of petroleum dollars are cycling into financial markets annually today, compared with an annual flow of only $600 billion back in 2003 when oil prices were close to $20 per

With crude oil futures threatening to hit $90 a barrel, gas prices jumped again this week, to a national average of $2.78 a gallon for regular unleaded, according to AAA. So, fuel economy is paramount. Here are tactics to help you get the most miles per gallon from your vehicle this winter and save money, too.

Get checkups. Regular oil changes and tuneups cost money and can take a big chunk out of your Saturday. But repairing a car that has failed an emissions test will improve its gas mileage by an average of 4 percent. And fixing a serious maintenance problem, such as a faulty oxygen sensor, can improve mileage by as much as 40 percent. Even a simple change like replacing a clogged air filter can improve gas mileage by up to 10 percent.

Inflate tires. Properly inflate your tires according to instructions in your vehicle owner's manual. Underinflated tires can lower gas mileage by 0.4 percent for every pound's drop in pressure of all four tires.

Discover oil. "Get oil changes every three to four months," recommends Ronnie Kweller, spokesperson for the nonprofit Alliance to Save Energy. You can improve your gas mileage by 1 to 2 percent by using your manufacturer's recommended grade of motor oil. But using 10W-30 motor oil in an engine designed to use 5W-30, or 5W-30 in an engine made for 5W-20, can decrease gas mileage by 1 to 2 percent. Also,

A couple of years ago, the prospect of gas costing $3 per gallon--indefinitely--loomed as an economic cherry bomb and a threat to the American way of life. Automakers considered $3 gas to be the threshold at which car owners would rebel and trade in their SUVs for scooters. And economists feared it would crimp consumer spending--the great engine spurring U.S. economic growth--as people traveled less, cut back on shopping, and generally stayed home and moped.

It hasn't happened.

Needless to say, rising pump prices are an economic hardship for some people, like low-income workers who drive long distances to their jobs. But gas prices that now average about $3.10 per gallon--more than twice what they were five years ago--seem to have had surprisingly little effect on the cars people buy and the way they drive. Here are five dramatic scenarios associated with $3 gas that various seers have predicted but now look like they aren't going to happen.

Americans will flee big cars. Some drivers have downsized, but there are actually more land yachts on the road today than there were before the big run-up in gas prices. Large vehicles account for 27.9 percent of the market today, according to J. D. Power & Associates, compared with 27.1 percent in 2000,

WASHINGTON (AP) -- The housing collapse and credit crisis will slow economic growth and nudge up unemployment next year, the Federal Reserve said Tuesday in a first-of-its-kind forecast that some economists believe will lead to interest rate cuts early in 2008.

Don't count on a cut in rates at the Fed's December meeting, however, analysts say. The Fed called its rate reduction in late October a "close call" and hinted that its two cuts this year may be sufficient to energize the economy, according to minutes of the Oct. 31 closed-door meeting made public Tuesday.

Policymakers raised concerns at that meeting that inflation might flare up again in the short term, especially in the face of rising energy prices.

But with the Fed's longer-term forecast calling for moderating inflation next year and beyond, economists believe the central bank will have leeway to reduce rates next year.

"The economy is walking on a high wire. Eventually the Fed will have to cut rates again to put a net or a cushion under a falling economy," said Stuart Hoffman, chief economist at PNC Financial Services Group. He and other economists predicted more rates cuts early next year to prevent the possibility of the

DETROIT (AP) -- This city at the heart of an area that is among the nation's hardest hit by rising foreclosures will host a meeting of mayors from across the country next week to address the nation's housing crisis.

The National Forum on Homeownership Preservation and Foreclosures, organized by the U.S. Conference of Mayors, will includes discussions about the state of the mortgage industry, ways homeowners can avoid foreclosure, and strategies to keep foreclosed properties from dragging down the quality of life in neighborhoods.

"We're not talking about legislation," said Detroit Mayor Kwame Kilpatrick, who is hosting the one-day forum Tuesday. "We're talking about finding a local solution to a national problem, and we'll start with the conversation here."

The goal is to create policy recommendations to present at a Conference of Mayors meeting in January, Kilpatrick said.

Next week's gathering is closed to the media, but the mayors plan to release a report on the economic ripple effect of foreclosures on U.S. metropolitan areas, with a focus on cities in Arizona, California,

When it comes to making crucial decisions about retirement payouts, you don't get do-overs. Instead of checking off boxes and signing forms before rushing off to your retirement party, take time to weigh your options. Making mistakes "can be a very expensive learning curve," says Mark Cortazzo, head of Macro Consulting Group, in Parsippany, N.J. Avoiding them can save you thousands of dollars in taxes.

MISSTEP #1: Withdrawing money too soon

If you tap your retirement funds before age 59 1/2, you'll owe a 10% early-withdrawal penalty on top of the federal and state income taxes you'll pay on each distribution. There are exceptions that let you withdraw your money early without a penalty -- but only if you follow the rules.

For example, if you are at least 55 when you leave your job, you can take distributions from your 401(k) without paying a penalty (but you will still owe income taxes on your withdrawals). The key is to keep your money in your employer's plan when you retire. If you transfer it to an IRA, you'll lose the "55-and-out" option.

Jim Conrad of Huntertown, Ind., planned to tap his 401(k) when he retired last fall after 33 years in the auto industry. But there's a catch: Although you qualify for penalty-free access to your money if you are

I gave a talk about retirement planning in Los Angeles in 2000. "Melanie," a widow who lost her husband to cancer five years earlier, was at that session and contacted me later to help her with a unique idea: She wanted to move to Tahiti and raise her son there.

Melanie had been a flight attendant for many years and had traveled the globe. "On my first trip to Moorea, French Polynesia, my mouth just dropped as I was struck by the natural beauty of the tropical vegetation and colors of the beach and lagoon; I fell in love with it immediately upon arrival and the Tahitians were exceptional, too. I went home to L.A. but became 'homesick' for Moorea. I flew back, two weeks later, with my only son Josh, who's 7 years old--he liked it, too. On my third trip, two months later, I made my decision to live there. And seven months later, I made that happen."

Caution: Do Your Research First!

Some of you may be thinking of retiring somewhere other than where you live now. When you are considering an exotic location like Tahiti or Mexico, it is especially important to do some homework first so you know what you're getting yourself into.

Melanie had the right idea when she spent time visiting the area where she wanted to relocate. She also

Question: I'm 59 years old, earn $125,000 a year and plan on working until I am eligible for full Social Security benefits. I have about $1.6 million that's invested in a number of retirement accounts (mostly tax-deferred, but I have a Roth IRA too) and I own an investment property worth about $390,000.

In addition to contributing to my company's retirement savings plan, I also save another $30,000 a year. I would like to retire with the same income I have now without going over a 4 percent withdrawal rate. Is this possible, assuming I invest in a conservative equity portfolio that earns a below average return? - Jim, Saute Ste. Marie, Mich.

Answer: I never like to say that something is a totally done deal. After all, we are going through a shaky period in the economy and the markets, and a lot can happen between now and the time you retire.

Based on the information you've given me, however, it seems you've got a very good shot at achieving your goal, although I do wonder whether you'll need the same income you have now in order to enjoy retirement.

But more on that point later. Let's do a few off-the-cuff calculations to see where you stand.

You say you invest in a conservative equity portfolio that earns a below-average return. Well, I don't

SINGAPORE (AP) -- Crude oil prices rose to a record above $99 a barrel in Asian trading Wednesday, lifted by worries about inadequate supplies as the Northern Hemisphere enters winter and on news of refinery problems.

The declining U.S. dollar and speculation that the U.S. Federal Reserve will again cut interest rates also boosted prices. Some investors put their money into oil contracts, betting that gains in their price will offset dollar weakness.

"The market is now really looking at $100 a barrel as the next target to hit," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "The fact that we are having this surge in pricing in this short trading week underscores the strength of this bull run for oil."

Light, sweet crude for January delivery rose as high as $99.29 a barrel in electronic trading on the New York Mercantile Exchange, breaking the previous intraday record of $98.62 set last week. Midday in Singapore, oil was trading at $99.04 a barrel.

The contract surged $3.39 during the floor session Tuesday in New York to a record close of $98.03 a barrel. The Nymex will be closed Thursday for Thanksgiving and close early on Friday.

Energy futures got a boost on news of problems at two oil facilities Tuesday. A Valero Energy Corp.