{"id":33174,"date":"2015-08-29T03:00:04","date_gmt":"2015-08-29T10:00:04","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=33174"},"modified":"2022-06-23T10:12:50","modified_gmt":"2022-06-23T17:12:50","slug":"black-coffee-29-august-2015","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id33174-black-coffee-29-august-2015.html","title":{"rendered":"Black Coffee: So, Where Did All of the Buy-and-Hold Investors Go?"},"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> And so it begins; China is now liquidating<\/a> its US Treasury bonds in rapid fashion — $106 billion worth in the past two weeks alone. Why is that important, you ask? In essence, China has canceled America’s biggest charge card — and they’ve sent us the first bill.<\/p>\n

Debit:<\/strong><\/span> By the way, China isn’t the only one selling: On Monday, the Dow was down almost 1100 points<\/a> at the open — no, that’s not a typo — before “recovering” to finish the day 588 points lower on heavy volume.<\/p>\n

Debit:<\/strong><\/span> Somewhat surprisingly, the hemorrhaging continued<\/a> into Tuesday — despite being up 442 points earlier in the day — and didn’t stop until midweek, when the Plunge Protection Team’s frantic efforts<\/a> to apply a tourniquet finally succeeded.<\/p>\n

Credit:<\/strong><\/span> And although the stock market seems to have stabilized — for now — there are those who believe the Dow could eventually end up falling another 11,000 points<\/a> before this is all over. I agree.<\/p>\n

Debit:<\/strong><\/span> Then again, why is there so much panic selling on Wall St. when we all know that a “booming” Main St. economy is providing a stiff wind for its sails? Hey — don’t be “a denier.” It’s the truth; not only is unemployment near all-time lows<\/a>, but the US revised its 2nd quarter GDP<\/a> figure this week to 3.7% too. No, really.<\/p>\n

Debit:<\/strong><\/span> Yes, yes. I realize that 20% of all US households<\/a> are on food stamps, 15 million Americans<\/a> are on “disability,” almost 95 million<\/a> aren’t in the work force, and wages have been stagnant for years<\/a> — but you know me: I’m a “glass-half-full” guy.<\/p>\n

Debit:<\/strong><\/span> On the other hand, when you consider that 7 million American college graduates have gone at least a year<\/a> without making a federal student loan payment, maybe the recent stock market panic selling is justified after all.<\/p>\n

Debit:<\/strong><\/span> Stop me if you’ve heard this before: Hyperinflation in the People’s Socialist Paradise of Venezuela is resulting in increasingly dire food shortages<\/a> there. Oh, and long lines and looting too. Does Danny Glover knows about this<\/a>? Forward!<\/p>\n

Credit:<\/strong><\/span> The good news is that the Venezuelan government announced its latest economic relief plan this week: add more zeros<\/a> to its worthless currency. Hey, it won’t solve the food shortages, but it will allow shoppers to once again carry their cash in a wallet instead of wheelbarrows. Well … for a few days anyway.<\/p>\n

Credit:<\/strong><\/span> Now that Venezuela’s socialist, um, lifestyle is reflecting the reality of its something-for-nothing ideology, folks may be finally waking up<\/a>. One person in line observed that: “The people that used to give us work — the private companies, the rich — have all gone.”<\/em> Imagine that.<\/p>\n

Debit:<\/strong><\/span> Of course, not all<\/em> Venezuelans are struggling to survive. Just ask the nation’s richest person<\/a>: Maria Gabriela Chavez. She has a net worth of $4.2 billion. The fact that she also happens to be the daughter of the late Venezuelan dictator, Hugo Chavez, is probably just a coincidence. Right, Danny?<\/p>\n

Credit:<\/strong><\/span> Remember that the next time some moron<\/a> tells you that capitalism exploits the poor — and socialism is the antidote. Socialism is the problem.<\/p>\n

Credit<\/strong>:<\/span> Finally … Earlier this week, Burger King got the royal brush off after McDonald’s declined its rival’s offer to collaborate on a Whopper\/Big Mac hybrid — dubbed the “McWhopper<\/a>” — in a bid for world peace. Frankly, I always saw Mayor McCheese as a pacifist. Guess I was wrong.<\/p>\n

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

Amaze your family at the dinner table tonight with these fun facts about Burger King’s famous Whopper sandwich:<\/p>\n

1957<\/strong><\/span><\/span> Year Burger King introduced the Whopper.<\/p>\n

$0.37<\/strong><\/span><\/span> The Whopper’s price in 1957. ($3.27 in current-year dollars.)<\/p>\n

8<\/strong><\/span><\/span> Items needed to create the classic Whopper. (Beef patty, sesame seed bun, mayonnaise, lettuce, tomato, pickles, ketchup, and sliced onion)<\/p>\n

5<\/strong><\/span><\/span> Additional items that can be added to the Whopper upon request. (American cheese, bacon, mustard, guacamole, jalapeno peppers)<\/p>\n

650<\/strong><\/span><\/span> Calories in the basic Whopper.<\/p>\n

1985<\/strong><\/span><\/span> Year that Burger King replaced the sesame seed bun with a Kaiser roll.<\/p>\n

1994<\/strong><\/span><\/span> Year that Burger King went back to the sesame seed bun.<\/p>\n

221,184<\/strong><\/span><\/span> Number of ways you can order a Whopper, according to Burger King.<\/p>\n

Sources: Wikipedia<\/a><\/em><\/p>\n

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

[poll id=\"77\"]<\/code><\/p>\n

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

Are you ready for summer to end?<\/p>\n