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Money in the News: Stories that make me go “What the…”

MSN Money posts about Bloombergs lawsuit against the Federal Reserve to be allowed information on what money was spent via secret loans during the recession. NPR covers the same story.

The Federal Reserve’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money.

MSN Money posts a story about a son that stuck his mother with $20,000 worth of debt.

Her son asked her to co-sign on two credit cards and for a Toyota truck, which she did. She believed he would honor his word and pay the bills. She had no idea he had over 130 civil actions against him in San Mateo County (Calif.) alone, his home was recently foreclosed on, and he has liens and judgments levied against him in the millions! He charged up the credit cards plus one more he opened without her knowledge, and then he declared bankruptcy, leaving her with the debts.

Daily Finance posts about how social security disability payments may end in 2017.

The Congressional Budget Office has come out with a new analysis that says the ability of the Social Security disability fund to make payments may end in 2017. The estimates depend, of course, to some extent on the economy. The CBO’s 2011 Long-Term Projections for Social Security reports that “as more members of the baby-boom generation (that is, people born between 1946 and 1964) enter retirement, outlays will increase relative to the size of the economy, whereas tax revenues will remain at an almost constant share of the economy. As a result, the shortfall (in the Disability Insurance (DI)) fund will begin to grow around 2017.

MSN Money posts a video about the 5 worst money mistakes you can make.

#2 Not having an emergency reserve. I’ve seen people have to sell stocks in their portfolio at a loss because of an emergency. Make sure you have an emergency fund on hand.

Daily Finance posts an interesting story comparing photoshopping mistakes out of pictures, to photoshopping mistakes out of your finances.

“I only have a little credit-card debt.”

This is kind of like being a “little pregnant.” Long-term, both credit-card debt and babies are guaranteed to have a major effect on your finances and anxieties, but debt offers zero moments of intense joy. You won’t make much financial progress paying 16.5% interest — the average rate in July, according to IndexCreditCards.com — over the long haul.

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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