coming up when i talk to clyde anderson. >>> i'm t.j. holmes.it is churning in the gulf of mexico. we have seen several states of emergency put in effect. mississippi and louisiana trying to get their ducks in a row right now. they know this water is likely going to start rising. look at what they are doing on grand isle, louisiana. the rain is already there. they are getting rain for more. i talked to rupert lacy. he is the emergency director for gulfport and biloxi, mississippi. i asked if people were ready to get out of there. >> of course, they are. we are in the process of rebuilding after katrina. one of the misfortunes is that in some of our lower lying areas of or county, people have not built back right back in paradise along the water. we've had been ten roads we had water over because of rivers coming up the southeast flow. you know, we had a couple of homeowners that talked to us about the standing water. if we have to, we are ready to pull the trigger and open up a shelter. we still have a little bit of time so people can prepare th

but clyde anderson said 89% of folks may be doing the wrong thing.cifics. in general, should you attack that debtor make sure you have the rainy day fund? >> i think the rainy day fund is really important. i think it is great to pay down debt. we are not saying don't pay your debt. get that rainy day fund first. in this economy, you should have ten months of monthly income set aside for emergencies. emergencies do happen. they happen more now than ever. you want to be prepared. >> when you say you may not be paying down versus paying on. you are saying make the minimum payment? >> make your minimum payments. in the case where you have a situation where you are trying to get your debt-to-income better and qualify for a home. if you are trying to improve your credit score, you want to pay that down. it is important to have financial goals set in place to know what i'm trying to do. >> what we are talking about here is pay yourself first. if you have $5,000 sitting on the credit card. the minimum is $100. whatever it is. don't pay $1,000 or $2,000. use

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earlier i spoke with clyde anderson who explained while saving for the future is so important.case is different. >> i think the rainy day fund is important. it's great to pay down debt. we're not saying don't pay your debt, but get the ray diny fund first. in this economy, they're saying you should have ten months of reserves set aside for emergencies. emergencies do happen. they're happening more now than ever. >> you say still you might not be paying down versus paying on. >> exactly. >> make the minimum payment? >> make your minimum payments. in the cases where you have a situation where you're trying to get your debt to income better, maybe you're trying to qualify for a home, you may want to pay that debt down. depends on what your goals are. it's important to have financial goals set in place to know exactly what i'm trying to do. >> okay. and what we're talking about here is chunks. >> yes. >> you say pay yourself first. >> yes. >> if you've got $5,000 sitting on the credit card and the minimum might be $100, keep up with the timely payments but don't pay $1,000 or $2,00

lot of places you use your debit card, you actually shouldn't do that, at least according to clyde andersonked to him a little earlier. he explained that you should not use your debit card at a restaurant, because your waiter literally walks away with your card. >> they're gone, they've got your number. >> that's why you say -- >> exactly. so you want to have some sort of control. and you lose some sort of control when you're giving them that debit card to go away and do what they do. >> but when they go away with your debit card, your protections in place than -- >> exactly, exactly. >> what about a gas station? >> because a lot of gas stations have these atms, these convenient atm machines that a lot of people use. those are the ones i'm saying stay away from. some of them look a little suspect. g to the bank. don't want to use it somewhere where it's suspect. >> it's not a matter of buying the gas. >> no. >> oh. >> but on the other side, when you're talking about gas, you don't any recourse as well. it doesn't come out immediately sometimes. >> give me the other places. these might surpr

georgia tech economists, danny boston is back with us, and we have financial expert, clyde anderson, "what had happened was", and i have to ask you about that tilts, clyde, and johanna hill. and we have norma siegfried. 45 seconds or less. danny let's start with you. what needs to happen? what does the president or congress need to do to move this forward and create jobs. i have a little bell here. >> real quickly, and i will be drummed out of the economics profession for saying that, but we need to have a surcharge on qe 2, and it's a way of keeping interest rates low and making money available for corporations to borrow and invest. they are borrowing it and sitting on idle cash but not spending. we need to encourage them to spend. we can impose a surcharge if they have the excess cash. we have to do something about small and mid-sized businesses, because that's where the whole engine of wealth is. we need policies to help those businesses. and we have to address the address the issue of the disproportionate unemployment by minorities. >> all right. what do you think should be in th