{"id":30954,"date":"2015-04-25T08:39:53","date_gmt":"2015-04-25T15:39:53","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=30954"},"modified":"2023-10-08T09:38:54","modified_gmt":"2023-10-08T16:38:54","slug":"black-coffee-what-me-worry","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id30954-black-coffee-what-me-worry.html","title":{"rendered":"Black Coffee: What? Me Worry?"},"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

Okay, off we go …<\/p>\n

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

Debit:<\/strong><\/span> Believe it or not, a recent survey found that almost one-third of all people who set aside savings for retirement have less than $1000<\/a> in their golden-years account. Although, with so little being put aside, I’d say golden week<\/em> is more accurate.<\/p>\n

Debit:<\/strong><\/span> I suppose it’s not a coincidence that a report released on Thursday found that 56% of all Americans today have subprime credit scores<\/a>. Wow. Think about that for a moment — and what it says about fiscal discipline and the state of the economy.<\/p>\n

Credit:<\/strong><\/span> Oh, well. Despite Main Street’s pain, Wall Street is booming. This Friday the Nasdaq finally surpassed the all-time high<\/a> it reached in 2000 — just prior to the dot-com crash — while the S&P 500 set an intraday high before falling back a bit.<\/p>\n

Debit:<\/strong><\/span> So for the bull market, it’s onward and upward — but in some cases, it’s hard to see why. Consider McDonald’s: The restaurant has been losing customers for years now which helps explain Mickey D’s announcement this week that their global profit fell 33%<\/a> over the past year.<\/p>\n

Debit:<\/strong><\/span> In a normal market, Golden Arches’ stockholders would be punished on such bad news but, as Franklin Sanders<\/a> points out, on the day it was announced, McDonald’s stock price actually soared<\/em> 3%. I know.<\/p>\n

Debit:<\/strong><\/span> That example from the Bizarro world is just one reason why money managers like Michael Pento are warning that global stock markets are now completely divorced<\/a> from any sense of economic reality.<\/p>\n

Debit:<\/strong><\/span> Despite the seemingly never-ending stream of upbeat news from the mainstream media, there is a sense out there that something ominous<\/a> is on the horizon.<\/p>\n

Debit:<\/strong><\/span> For example, the IMF is warning regulators to brace for a “global liquidity shock<\/a>” that will usher in the next financial crisis. Uh oh.<\/p>\n

Debit:<\/strong><\/span> For its part, the Fed says, “What? Me worry?” They just finished a study that concluded their own insolvency “would not create serious problems<\/a>.” Uh huh. The Fed has a point — but it’s a weak one.<\/p>\n

Credit:<\/strong><\/span> After all, if you can print legal tender at will then, technically, insolvency is impossible. However, the Fed seems to forget that’s only true as long as confidence doesn’t wane<\/a>. But it will. And that’ll be the day the dollar dies.<\/p>\n

Debit:<\/strong><\/span> Speaking of liquidity shocks, Greece is in a cash crisis of their own right now<\/em> — things are so bad that their coffers could run dry<\/a> in mere weeks. Do you think the Greeks are reconsidering their decision to drop the drachma for the euro yet? I do.<\/p>\n

Credit:<\/strong><\/span> Meanwhile, new electric- and hybrid-car sales are at their lowest level<\/a> in four years. Adding insult to injury, 22% of so-called “environmentally-conscious” car buyers who traded them in this year bought an SUV<\/a>. Heh.<\/p>\n

Credit:<\/strong><\/span> Let’s face it: Electric cars make zero economic or environmental sense<\/a> at the moment; without government subsidies they’re too expensive — and the electricity to run them still depends on oil. Then there’s the battery disposal problem. But, hey, if buying one makes you feel<\/em> good …<\/p>\n

Credit:<\/strong><\/span>The truth is, in a truly free market unencumbered by the Fed’s ridiculous malinvestment-inducing zero-interest rate policy, government subsidies for consumers, and tax breaks for manufacturers, electric cars wouldn’t see the light of day today. Are you listening, Elon Musk<\/a>?<\/p>\n

Debit:<\/strong><\/span> Finally … If Obamacare is so<\/em> great, why did only 65% of California’s 2014 Obamacare participants reenroll this year? That’s beyond disappointing, considering the government invested<\/del> wasted $1.06 billion<\/a> on the California healthcare exchange.<\/p>\n

Credit:<\/strong><\/span> By the way, Covered California was hoping for 500,000 new sign-ups in 2015. Instead, they said just 7.098<\/a> “selected a plan.” Imagine that. I’ll bet even fewer actually committed.<\/p>\n

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

Amaze your family at the dinner table tonight with these facts about the Golden Arches:<\/p>\n

12.5<\/strong><\/span><\/span> Percentage of American workers who have been employed by McDonald’s.<\/p>\n

3<\/strong><\/span><\/span> New restaurants that McDonald’s opens every work week.<\/p>\n

68,000,000<\/strong><\/span><\/span> People that McDonald’s restaurants feed every day.<\/p>\n

$75,000,000<\/strong><\/span><\/span> Amount of cash McDonald’s makes every day.<\/p>\n

80,000<\/strong><\/span><\/span> People who have graduated from McDonald’s Hamburger University with a degree in Hamburgerology.<\/p>\n

115<\/strong><\/span><\/span> Maximum distance, in miles, that you can be from a McDonald’s restaurant within the continental US.<\/p>\n

7<\/strong><\/span><\/span> Hours of walking required to burn off a Big Mac with super-sized fries and a Coke.<\/p>\n

Source: Factslides<\/a><\/em><\/p>\n

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

[poll id=\"58\"]<\/code><\/p>\n

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

Have you ever been given a counterfeit bill during a cash transaction?<\/p>\n