{"id":31387,"date":"2015-05-23T08:44:52","date_gmt":"2015-05-23T15:44:52","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=31387"},"modified":"2025-03-28T17:12:34","modified_gmt":"2025-03-29T00:12:34","slug":"black-coffee-rules-for-thee-but-not-for-me","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id31387-black-coffee-rules-for-thee-but-not-for-me.html","title":{"rendered":"Black Coffee: Rules for Thee But Not For Me"},"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

Credit:<\/strong><\/span> Stop me if you heard this before: This week the Fed ruled out<\/a> raising interest rates next month and the S&P 500 immediately responded by hitting an all-time high<\/a>. That’s how any addict hooked on low interest rates would react.<\/p>\n

Credit:<\/strong><\/span> Yes, sedated stock investors have been getting their Fed fix for so long now that even Bank of America is warning<\/a> that the markets are in The Twilight Zone and urging investors to hold more cash and — get this — the barbarous relic known as gold. Yes, that<\/em> gold.<\/p>\n

Credit:<\/strong><\/span> I see the Austrian Central Bank didn’t waste any time following B of A’s advice — they announced this week that they are repatriating 110 tons<\/a> of yellow metal that’s currently being “safeguarded” for them by the Bank of England.<\/p>\n

Debit:<\/strong><\/span> Sadly, central bank zero-interest-rate policies have distorted bond markets around the world so badly that conservative investors are now flocking to relatively-high yielding junk bonds<\/a> as their new fixed-income haven. This won’t end well either — no matter which path investors take.<\/p>\n

Debit:<\/strong><\/span> Did you see this? The economies of 32 states are in such bad shape that they’re now dealing with significant budget gaps<\/a> in fiscal 2015, 2016 — or both.<\/p>\n

Debit:<\/strong><\/span> With so many states in fiscal distress, it makes the US Senate’s decision to hide the details<\/a> of the Trans Pacific Partnership trade bill being touted by President Obama before it votes a curious one. Why the subterfuge?<\/p>\n

Debit:<\/strong><\/span> Of course, the last bill that had to be passed to “find out what’s in it<\/a>” was Obamacare — and we all know how that worked out. Thanks to Obamacare, last month healthcare costs rose at their fastest pace<\/a> since 2007.<\/p>\n

Debit:<\/strong><\/span> But wait, it gets worse: According to the Wall Street Journal, high medical costs incurred by new Obamacare enrollees are causing insurers to raise rates in 2016 by as much 51%<\/a>. You can bet those outrageous deductibles won’t be going away though.<\/p>\n

Debit:<\/strong><\/span> Meanwhile, Medicaid sign-ups under Obamacare are skyrocketing beyond advocates’ original expectations<\/a> — and despite opponents’ warnings to the contrary. Unfortunately, a portion of the resulting cost overruns will be levied on the states after 2016. Oops.<\/p>\n

Credit:<\/strong><\/span> If only Hawaii’s Obamacare exchange was so successful — guess how many enrollees they got during the special “last chance” enrollment period between March 15 and April 30. If you said “one,” you overestimated<\/a>.<\/p>\n

Credit:<\/strong><\/span> Hey, now … If you’re from Rhode Island and Vermont, don’t laugh — those states enrolled just 25 and 97 people, respectively, during the same period. Obviously, a growing number of folks would rather pay the Obamacare tax<\/a> penalty than buy its over-priced insurance.<\/p>\n

Debit:<\/strong><\/span> Perhaps if Obamacare was less expensive, union protestors wouldn’t have shut down a McDonald’s<\/a> restaurant this week because fry-cooks don’t make $15 per hour. Then again, these are the same Utopians who demanded Obamacare be foisted on everyone too. Well, everyone but them<\/a>.<\/p>\n

Debit:<\/strong><\/span> By the way, according to the Economic Policy Institute, 36% of all minimum wage workers are age 40 or older<\/a>. Yeah, that’s the sign of a healthy economy. Isn’t it? Okay … maybe not.<\/p>\n

Credit:<\/strong><\/span> One thing is certain: Contrary to the Institute’s emotional claims, the demographics of those earning the minimum wage is not<\/em> a reason to raise it to $15 per hour.<\/p>\n

Debit:<\/strong><\/span> Then there are those who are currently making nothing at all because they’re hopelessly unemployed. A new survey found that the economy is so dismal, 40% of the unemployed<\/a> have quit looking for a job entirely. I know.<\/p>\n

Debit:<\/strong><\/span> Finally … With Memorial Day weekend upon us, some of you may be planning on eating a hot dog or two — just don’t buy one in New York City, where one unscrupulous street cart vendor near Ground Zero was allegedly selling them for $30<\/a> each. Sad.<\/p>\n

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

Speaking of overpriced New York City hot dogs, here are a few facts and figures on the popular summer food:<\/p>\n

20,000,000,000<\/strong><\/span><\/span> Hot dogs consumed by Americans each year — that’s 70 per person annually.<\/p>\n

35<\/strong><\/span><\/span> Percentage of hot dogs eaten between Memorial Day and Labor Day.<\/p>\n

2<\/strong><\/span><\/span> European cities that claim to be the birthplace of the modern hot dog. (Vienna and Frankfurt)<\/p>\n

1900<\/strong><\/span><\/span> Year “hot dog” first appeared in The Oxford English Dictionary.<\/p>\n

$2500<\/strong><\/span><\/span> Daily revenue for a Big Apple hot dog cart at W. 67th St. and the West Dr. on a typical summer Saturday.<\/p>\n

$50<\/strong><\/span><\/span> Amount the same NYC hot dog cart brings in on a typical winter day.<\/p>\n

$266,850<\/strong><\/span><\/span> Annual fee charged by NYC Parks for a hot dog stand at the same location.<\/p>\n

$300<\/strong><\/span><\/span> Amount Nathan Handwerker borrowed in 1916 to start a hot dog stand at Coney Island.<\/p>\n

$82,900,000<\/strong><\/span><\/span> Nathan’s Hot Dogs revenue in 2013.<\/p>\n

Source: NBC News<\/a><\/em><\/p>\n

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

[poll id=\"62\"]<\/code><\/p>\n

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

How many homes have you ever owned?<\/p>\n