ECONOMISTS, AUTHORS, FINANCIAL EXPERTS

Naomi Klein talked about her book and the current economic crisis and bail out. Jeremy Scahill then talked about his book and the situation in Iraq. They then responded to questions from members of the audience.

Naomi Klein is the author of The Shock Doctrine: The Rise of Disaster Capitalism, published by Metropolitan Books. In her book she argues that in the wake of natural and man-made devastation economic reform is introduced to benefit investors and free market advocates while taking advantage of moments of collective disorientation.

Jeremy Scahill is the author of Blackwater: The Rise of The World's Most Powerful Mercenary Army, published by Nation Books. Since he wrote this book, the Iraqi government has banned Blackwater from operating in Iraq.

CREDIT CARD WARNING FROM MARY H TO VERONICA S

Dear Mary,
We have $16,000 in available credit on four credit cards. We charge about $2,000 a month and carry no balance on any of them. We also have a car loan with a balance of $6,800 at 8.4 percent and a monthly payment of $327. We have the option on a $5,000 limit card (which we never use) to transfer a balance for a fee and zero percent APR for the life of the balance. I have considered transferring a chunk of the car loan by paying it off with a check from the credit card company and then paying the minimum on the credit card. Then, once the reduced car loan is paid in full in eight months, we could direct that $327 toward the card balance until it is also paid in full. Do you think the savings in interest would be worth it? Veronica S., email

Dear Veronica,
Please do not do that. We are in a very dangerous period until July 2010, at which time credit card companies will be unable to raise interest rates retroactively on credit card accounts. Until then, they can, and they will, raise rates without regard for the "promise" of zero percent interest. Trust me on this. I could show you thousands of letters from your fellow Everyday Cheapskate readers who believed a "fixed rate" on a credit card account actually meant it could not go up. A fixed rate only means that it is not tied to a specific index.

Another problem: I assume that by saying you will transfer a "chunk" means about $5,000. That would max out your card and deal a terrific blow to your credit score. You never want to find yourself using more than 30 percent of your available credit on any one of your cards, at any time, even when you pay the balance to $0 each month.

VOICES OF WISDOM

Are We Witnessing the Shock Doctrine in Effect?