The Ten Biggest Economic Stories of 2012

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Although the foreclosure crisis is not quite over yet, tailwinds have begun to hit the U.S. housing market. Image credit:The Truth About

Housing Market Begins to Recover: #3

After four long years of declining values and rampant foreclosures which cost millions their homes and toppled community banks throughout the country, the housing market began an uneven recovery in 2012.

As of the third quarter, prices nationwide had increased 3.6%, with housing starts reaching a 5-year high.

Fiscal Cliff Negotiations Continue Overnight Into 2013: #2

Due to the potential harm tax increases and massive spending cuts could do to the U.S. economy, congressional action to blunt the impact of lower discretionary income coupled with forced austerity continued late into New Year’s eve, almost literally the 11th hour before the ‘fiscal cliff’ begins.

With the House adjourning for the evening, the U.S. will technically go over the cliff, but as has been written here, the effects will be gradual and can be reversed with a retroactive bill once the Congress reconvenes in January.

President Obama Re-Elected: #1

Whatever your political affiliation, it cannot be denied that President Obama’s defeat of Republican challenger Mitt Romney will have economic ripple effects for years, if not decades. Differing philosophies on the role and scope of government, along with regulatory, legislative and judicial actions that will likely affect a number of the above issues make Obama’s re-election the top economic issue of 2012.

2012 Economy Highlights

Any top ten list is bound to miss important events that just didn’t make the cut, and space constraints prohibit us from exploring each subject in the detail they deserve, but each of these issues has had a significant impact on the economy in 2012. What’s next in 2013? Only time will tell.

Resources

Eadicicco, Lisa. Biggest Tech Flops of 2012: Top 5 Failures, From the Facebook IPO to Microsoft Surface(2012). International Business Times. Accessed on January 1, 2013.

Wall St. Journal. Facebook Stock Chart(2012). Accessed on January 1, 2013.

Craig, Susanne and Protess, Ben. Massachusetts Fines Morgan Stanley over Facebook IPO. (2012). New York Times. Accessed on January 1, 2013.

Trading Economics. United States Unemployment Rate(2012). Accessed on January 1, 2013.

Thompson, Mark. Eurozone slips back into recession(2012). CNN. Accessed on January 1, 2013.

National Shooting Sports Foundation. The Writer’s Guide to Firearms & Ammunition(2012). Accessed on January 1, 2013.

McGee, Patrick. Four in a Row: Dow Rises 7.3% in 2012(2012). The Wall St. Journal. Accessed on January 1, 2013.

Censky, Annalyn. Federal Reserve launches QE3(2012). CNN. Accessed on January 1, 2013.

Freedman, Andrew. NOAA: 2012 to rank as second costliest US year since 1980(2012). The Guardian. Accessed on January 1, 2013.

Handley, Meg. Struggling Housing Markets Going into 2013. (2012). U.S. News. Accessed on January 1, 2013.

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