Right about now, many people begin to look back on the year that was and measure the triumphs and tragedies. Some of the biggest news stories in 2010 centered on pocketbook issues. I thought I would give you my list of the Top 10 personal finance stories.
1. Unemployment. Hands down, this has been the wrench in the cog of an economic recovery. And it may continue to be the big story in years to come.
2. The Great Recession was declared over. The National Bureau of Economic Research affirmed this year that the downturn that started in December 2007 officially ended in June 2009. It was the longest downturn since World War II. Technically, it may be over, but the financial suffering continues.
3. President Obama signed a sweeping overhaul of financial regulation. It created the Consumer Financial Protection Bureau, whose mission is to protect consumers from the abusive lending practices that contributed to the crisis.
4. Flash Crash. On May 6, the financial markets experienced a dramatic drop in prices, declining more than 5 percent in minutes, only to recover a short time later.
5. Foreclosure-Gate. Major lenders halted foreclosure sales after reports that mortgage loan servicers signed thousands of foreclosure documents without verifying the information.
6. Major phases of the Credit CARD Act took effect. Among other things, credit issuers can no longer push you over your card’s credit limit with fees or interest charges. People under 21 can’t get credit unless they prove they have the income to pay the debt or have a cosigner.
7. New federal rules took effect aimed at reining in shady debt-settlement companies. Debt-settlement companies now have to make specific disclosures to potential customers, including how much the service will cost.
8. Introduction of an online clock showing the billions in student loan debt being amassed at www.finaid.org/studentdebtclock.
9. Social Security turned 75. Despite the fact that Social Security has kept many people from slipping below the poverty line, we are still debating whether it’s a worthy social program.
10. Velma Hart. Hart became the symbol of middle- and higher-income folks unhappy with the lack of economic progress by Obama and his administration. During a town hall meeting in Washington, she told Obama: “The financial recession has taken an enormous toll on my family. My husband and I joked for years that we thought we were well beyond the hot-dogs-and-beans era of our lives. But quite frankly, it’s starting to knock on our door and ring true that that might be where we’re headed again. And quite frankly, Mr. President, I need you to answer this honestly: Is this my new reality?’’
Two months later, Hart was let go as the chief financial officer for Am Vets, a nonprofit veteran services organization. Turns out her fears were justified.
Michelle Singletary is a columnist for The Washington Post.
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