{"id":25564,"date":"2014-06-14T11:03:28","date_gmt":"2014-06-14T18:03:28","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=25564"},"modified":"2023-03-13T11:07:29","modified_gmt":"2023-03-13T18:07:29","slug":"black-coffee-friday-the-13th-full-moons-rising-oil-prices","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id25564-black-coffee-friday-the-13th-full-moons-rising-oil-prices.html","title":{"rendered":"Black Coffee: Friday the 13th, Full Moons & Rising Oil Prices"},"content":{"rendered":"

\"\"<\/a>It’s time to sit back, relax and enjoy a little joe …<\/em><\/p>\n

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.<\/p>\n

Let’s get right to it this week …<\/p>\n

Credits and Debits<\/strong><\/p>\n

Credit:<\/strong><\/span> A lot of folks may consider Friday the 13th to be bad luck, but that didn’t affect the Dow, NASDAQ or S&P 500 this week; at the closing bell they all finished the day in the green<\/a>. Maybe they didn’t know Friday was a full moon too.<\/p>\n

Debit:<\/strong><\/span> It wasn’t all good news. Despite that Friday the 13th rally, stocks finished with their worst week in two months<\/a> — which is perplexing considering all of the terrible economic news this year had previously failed to damp the market’s enthusiasm. So what did<\/em> finally get the market’s attention?<\/p>\n

Debit:<\/strong><\/span> Apparently, the market’s Achilles’ heel is rising oil prices. A barrel of crude is now $107<\/a> — that’s the highest it’s been since last September. It’s also 4% higher than it was just last week.<\/p>\n

Debit:<\/strong><\/span> Those higher oil prices have gotten the attention of American business magnate T. Boone Pickens. In fact, he’s warning that oil prices will skyrocket to somewhere between $150 and $170 per barrel<\/a> if the current crisis in Iraq results in their oil supply being cut off. Uh oh.<\/p>\n

Debit:<\/strong><\/span> I know what you’re thinking: What would that mean for gasoline prices?<\/em> Well … In July 2008, the oil price peaked at $147<\/a> per barrel. During that same month, the average US gas price was $4.11 per gallon<\/a> — and $4.52 in California.<\/p>\n

Debit:<\/strong><\/span> Of course, the so-called “average” price can be misleading — it’s often much higher. One example: In October 2012, although the average price of gasoline in Los Angeles was officially $4.35, some gas stations were charging as much as $5.79 for a gallon<\/a> of regular.<\/p>\n

Debit:<\/strong><\/span> I see Government Motors is now recalling all Camaro<\/a> models from 2010 through 2014 for a faulty ignition switch design that has resulted in at least three crashes. Yes, this is on top of a recall earlier this year that affected 2.6 million additional GM vehicles.<\/p>\n

Credit:<\/strong><\/span> On the bright side, if fuel prices return to their 2008 highs, those GM recalls won’t be such a bad thing. After all, cars that are in the shop don’t require a lot of gasoline.<\/p>\n

Debit:<\/strong><\/span> This seems almost too incredible to believe, but fully 1 out of every 10<\/a> cars on US roads have been recalled in 2014 — and we’re not even half way through the year yet.<\/p>\n

Debit:<\/strong><\/span> Meanwhile, consumer confidence dropped<\/a> for the second consecutive month. In fact, it was the biggest miss of expectations in 18 months. That doesn’t bode well for a contracting economy that is looking to rebound this quarter. If it doesn’t — the US will officially be in a recession.<\/p>\n

Debit:<\/strong><\/span> The plunging confidence figure makes a lot of sense if you consider that 52% of American renters and homeowners<\/a> can’t afford their house. No, that wasn’t a typo. I’ll wait while you go ahead and read that again.<\/p>\n

Credit:<\/strong><\/span> Maybe that’s why just 37% of Americans currently believe it’s a good time to buy a home. Sentiment hasn’t been that bad in more than four years<\/a>. And if you’re wondering why that’s a “credit,” then please reread the previous “debit.” (For the third time.)<\/p>\n

Debit:<\/strong><\/span> What’s that? You think all of those freshly-minted college grads will get good jobs and turn the economy around? Think again. Fully half of all US college grads out of school for two years are still relying on their parents<\/a> for money to make ends meet. I know.<\/p>\n

Credit:<\/strong><\/span> Hey, on a positive note … The Los Angeles Kings completed an incredible playoff run, skating off with their second Stanley Cup in three years after beating the New York Rangers in a double overtime thriller on Friday. Hooray! The parade is Monday; I’ll see you there.<\/p>\n

By the Numbers<\/strong><\/p>\n

Is college still a smart financial move? Here are some findings from a recent University of Arizona study on college grads who have been out of school for two years:<\/p>\n

49<\/strong><\/span><\/span> Percentage of college grads out of college two years who have a full-time job.<\/p>\n

$25,000<\/strong><\/span><\/span> Lower end of annual salary range for surveyed college grads with a part-time job.<\/p>\n

$40,000<\/strong><\/span><\/span> Upper end of annual salary range for part-time college grads.<\/p>\n

$29,400<\/strong><\/span><\/span> Average college debt incurred by students in 2012 after four years of schooling.<\/p>\n

63<\/strong><\/span><\/span> Percentage increase in average student college debt since 2002.<\/p>\n

70<\/strong><\/span><\/span> Percentage of surveyed college alumni who claim to be NOT financially self-sufficient two years after graduating.<\/p>\n

Sources: CNN; Huffington Post<\/a><\/em><\/p>\n

The Question of the Week<\/strong><\/p>\n

[poll id=\"11\"]<\/code><\/p>\n

Last Week’s Poll Result<\/strong><\/p>\n

How many residences have you had during your lifetime?<\/p>\n