{"id":31478,"date":"2015-05-30T14:21:32","date_gmt":"2015-05-30T21:21:32","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=31478"},"modified":"2020-07-05T12:29:48","modified_gmt":"2020-07-05T19:29:48","slug":"black-coffee-bubble-bubble-toil-and-trouble","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id31478-black-coffee-bubble-bubble-toil-and-trouble.html","title":{"rendered":"Black Coffee: Bubble, Bubble, Toil and Trouble"},"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

Debit:<\/strong><\/span> Today, a growing number of people around the world want their country to take care of their every need from cradle to grave — which works fine until Big Government<\/a> and its something-for-nothing supporters eventually run out of other people’s money.<\/p>\n

Debit:<\/strong><\/span> Unfortunately, we’re almost there and something has to give. Heck, even Goldman Sachs is now openly warning that the world is drowning in a sea of debt<\/a> so large that it can’t be sustained. Ya think?<\/p>\n

Debit:<\/strong><\/span> In theory we could grow ourselves out of trouble; but with such a massive debt overhang, existing government obligations, and — short of dropping “free” cash from helicopters — the world’s central banks out of ammunition<\/a> to juice economies, that’s all but impossible now.<\/p>\n

Debit:<\/strong><\/span> Yes, so-called “helicopter money” from the Fed would temporarily perk things up — but that also risks destroying the dollar. As a result, a growing number of economists believe the US will eventually seize 401(k) accounts<\/a> first.<\/p>\n

Debit:<\/strong><\/span> For their part, debt-ravaged Greece is mulling a levy on undeclared deposits in a desperate attempt to raise more cash. The truth is, like the US, Greece is already bankrupt<\/a> — it’s just not official yet.<\/p>\n

Credit:<\/strong><\/span> Then again, “bail-ins” for all<\/em> Greek depositors are certainly being considered right now too — so financially savvy Greeks are withdrawing cash<\/a> at a record pace. After all, why keep cash in the bank when it’s safer in a mattress? Especially when interest rates are zero — or less.<\/p>\n

Credit<\/strong>:<\/span> Did you see this? A Hollywood producer is building a 100,000 square-foot mega-mansion in Los Angeles — with a 5000 square-foot master bedroom — and he’s going to try to sell the place for $500 million. Who says the housing market isn’t in a bubble<\/a>?<\/p>\n

Debit:<\/strong><\/span> Considering that he’s a Hollywood producer, I don’t think it’s a stretch to assume he buys into the climate change<\/del> climate disruption<\/del> global warming hoax<\/a> too. Hopefully, I’m wrong.<\/p>\n

Debit:<\/strong><\/span> Speaking of bubbles, how about the stock market? We all know about the S&P 500, but it has nothing on China’s bourse. In five short months the Shenzhen Composite index is already up 100%<\/a>. No, I didn’t add an extra zero.<\/p>\n

Debit:<\/strong><\/span> Then there’s the People’s Socialist Paradise of Venezuela: Its national currency, the Bolivar, is now officially in a state of hyperinflation<\/a> with year-over-year prices rising 100.7%. No, I didn’t add an extra zero there either.<\/p>\n

Debit:<\/strong><\/span> Of course, this is the same country that’s been plagued by toilet paper shortages<\/a> for years — only now they extend to everything else, as Venezuelans are exchanging Bolivars as quickly as possible for whatever they can before the currency becomes totally worthless.<\/p>\n

Credit<\/strong>:<\/span> Ah, but there is a silver lining: As Zero Hedge reports, the good news<\/a> is, with Venezuela’s currency now in the crapper, its politicians inadvertently found a way to finally solve their national toilet paper problem.<\/p>\n

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

Here are a few more details on the million mega-mansion being built in Los Angeles with the crazy $500 million asking-price:<\/p>\n

30<\/strong><\/span><\/span> Cars that will fit in the estate’s garage.<\/p>\n

74,000<\/strong><\/span><\/span> Size, in square feet, of the main residence.<\/p>\n

20,000<\/strong><\/span><\/span> Size, in square feet, of the lawn.<\/p>\n

5<\/strong><\/span><\/span> Pools in the original plan.<\/p>\n

4<\/strong><\/span><\/span> Pools in the actual plan, including one in the basement.<\/p>\n

1<\/strong><\/span><\/span> Pools on the mansion’s second floor.<\/p>\n

20<\/strong><\/span><\/span> Estimated number of months required to build the estate.<\/p>\n

$147,000,000<\/strong><\/span><\/span> Highest price ever paid for a residential property in the US. (East Hampton, New York, in 2014.)<\/p>\n

Sources: Curbed Los Angeles<\/a><\/em><\/p>\n

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

[poll id=\"63\"]<\/code><\/p>\n

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

What is an appropriate cash gift for a graduating high school senior?<\/p>\n