This just in: The Fed has raised rates another quarter point to 3.25 percent. The effect will ripple through the economy, which is good news for banks.

I’m looking forward to some of the banks, such as ING Direct and Emigrant Direct (where I hold my savings) raising their rates as well.

According to the New York Times, Bank of America is buying MBNA.

This is another reason why consumers should avoid carrying a balance on credit cards if they are being charged interest. As more credit issuers merge, there will be less competition. With less competition, annual fees and interest rates will rise.

Update: CNN answers some questions about the future in the wake of this merger.

You’ve heard of this deal on the television and on blogs. General Motors [GM] is advertising an “Employee Discount for Everyone” sale, in which they are offering their vehicles for the same price an employee would pay, “not a cent more.”

Is it really a good deal? If you participate, most likely you will be paying 3 to 4 percent lower than the dealer’s invoice price. Some of the prices were previously unreachable through negotiation, and people have been taking advantage of this sale, to the company’s benefit. But according to David Ellis, there is still room for negotiation, especially on models that aren’t selling quickly.

The sale has worked well for GM. Their market share was up 30 percent earlier this month, mostly taken from Chrysler. While the promotion is scheduled to end after Independency Day, many people predict the offer will be extended.

Can this deal be related to the announcement that GM plans to lay off 25,000 workers between 2005 and 2008? After all, that’s 25,000 people who can no longer officially claim the employee discount. Nevertheless, it’s easy to call this offer “insensitive.”

Here’s how GM has performed in the market during the incentive:

The “real” employee discount is likely a much better deal for the buyer than the discount being advertised to consumers. Dealership employees often pay dealer cost or below, but I don’t know what GM factory workers or corporate employees pay. Their discount is probably significant.

If you’re planning on buying a car, The Motley Fool has a complete guide which should be read thoroughly.

Two updates: It’s official, this offer has been extended through August 1. Also, this post has been featured on the Carnival of Personal Finance #3.

Companies are paying bloggers to write about their products. Many of these bloggers don’t disclose that the company whose product they write about is providing compensation, whether it’s $5 per mention, a free vacation, or several thousand dollars.

Should there be mandatory disclaimer so an advertisement isn’t mistaken for a legitimate review? It may breach Federal Trade Commission guidelines without one. In fact, the Federal Election Commission is holding hearings this week to discuss the full disclosure of funds bloggers receive from political campaigns.

I’m fine with reviewing products on Consumerism Commentary. Throughout Consumerism Commentary’s run so far, I’ve been asked to write a few impartial reviews. I’ll gladly give an honest review for free (though I may be a little bit slow getting around to it), but it seems to be unethical and a conflict of interest to accept money for disguising product placement as a legitimate review. I have advertisements, yes, and anyone can buy an ad fairly cheaply, but they are clearly advertisements and not endorsements.

How Much Personal Liability Insurance Do You Need? The Motley Fool recommends covering yourself for how much you might have to lose if sued at the end of the term of insurance rather than how much you might lose if sued now.

Are you an extreme saver? (For some reason, I’m reminded of the extreme kayaking from Harold & Kumar Go to White Castle.) Michael Potter lives on an income of $15,000. He hardly ever drives, cuts his own hair. and still finds a way to support kids and his hobbies, which include ceramics and motorcycles. Even on his low income, he can afford a $7,000 entertainment system, thre Corvettes, and a $16,000 Harley.

Google [GOOG] is still above $300 per share. Will it split? Meanwhile, oil has dipped below $60 while we should expect gas at $3 per gallon.

Yesterday was the Carnival of Personal Finance #2, hosted by Blueprint for Financial Prosperity. The Carnival is a good way for readers to learn about various blogs they might not already read and for bloggers to get more exposure for their articles. Any blogger is eligible to submit an article, as long as it’s (loosely) related to personal finance.

Bloggers, consider participating in Carnival of Personal Finance #3, to be hosted by AllThingsFinancial!

For more information, you can view the Carnival schedule or the introduction.

Carnival of Personal Finance #2 has been published at Blueprint for Financial Prosperity! Bloggers can still submit articles throughout the day. Do it!

Standard & Poor’s Rating Services is making it more difficult for individuals to obtain adjustable rate mortgages (ARMs). Their official stance is that this type of loan is the only factor that is keeping the prices of homes soaring.

The S&P foresees many of these borrowers defaulting when interest rates rise and their monthly payments increase 50 to 90 percent.

Update: Paul Farrell from MarketWatch is getting involved in the discussion. He believes that high real estate prices is indicative of a global megabubble. He says, “If this megabubble exists, and if it bursts, the $8 trillion in wealth lost in the 2000-2002 bear market will be peanuts,” while remaining sketical and untrusting of doomsday scenarios. Take his “magabubble poll.”

Last week I talked about the Supreme Court decision regarding Eminent Domain. Hot on the heels of the decision, a town in Texas is preparing to seize 3 properties to make way for a marina. This time, businesses are involved rather than residences. The marina is expected to attract $60 million and create as much as 250 jobs. It sounds like this is for the economic benefit of the community, but where do you draw the line?