{"id":33536,"date":"2015-09-12T03:00:13","date_gmt":"2015-09-12T10:00:13","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=33536"},"modified":"2019-08-02T16:14:23","modified_gmt":"2019-08-02T23:14:23","slug":"black-coffee-12-september-2015","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id33536-black-coffee-12-september-2015.html","title":{"rendered":"Black Coffee: No, It’s Not Different This Time"},"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 …<\/p>\n

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

Debit:<\/strong><\/span> Despite stagnant wage growth<\/a>, RealtyTrac reports that US home prices hit all-time highs<\/a> in at least 10 metropolitan areas this summer. Here we go again.<\/p>\n

Debit:<\/strong><\/span> Not surprisingly, those sizzling home price gains have coincided with a resurgence of toxic liar loans<\/a>. You know, the same ones that were a major factor in the last housing market crash nearly a decade ago. And in case you’re wondering: No, it’s not<\/em> different this time.<\/p>\n

Debit:<\/strong><\/span> By the way, don’t think you can avoid skyrocketing housing costs by renting — especially if you live in San Francisco. The Bay Area market is so ridiculous that you can rent a bunk bed in a house there for $1800 per month<\/a> — as long as you are willing to share the place with 30 other tenants. Sounds reasonable.<\/p>\n

Credit:<\/strong><\/span> As Zero Hedge points out, rents in San Francisco and New York City are so insanely high now that there are actually castles<\/em> in France and Italy that can be rented for about the same price as average apartments in those cities. No, really<\/a>.<\/p>\n

Debit:<\/strong><\/span> The “good” news is New York state politicians just did their part to “help” people living in the Big Apple by further circumventing what’s left of the free market and approving a $15 minimum wage<\/a> law for fast food workers. Forward!<\/p>\n

Credit:<\/strong><\/span> Of course, New York’s latest mandate designed to alter economic reality will backfire<\/a> too in the long run — just like all of the other government subsidies, rules and regulations that caused those skyrocketing rents in the first place.<\/p>\n

Debit:<\/strong><\/span> The Dow ended the week on an up note<\/a> but all is clearly not well, as declining liquidity is exposing all of the markets to increasingly violent volatility<\/a>.<\/p>\n

Debit:<\/strong><\/span> Unfortunately, wild and persistent market swings typically signify an impending meltdown<\/a>. In fact, 9 of the Dow’s 20 biggest single day decreases — as well as 9 of its 20 biggest single-day increases<\/em> — occurred during the last financial crisis in 2008.<\/p>\n

Debit:<\/strong><\/span> Believe it or not, some economists are suggesting that the best way to improve our broken economy is to get rid of cash<\/a> and make all transactions electronic. Heh. Sure. Apparently, they don’t mind giving up their privacy either.<\/p>\n

Credit:<\/strong><\/span> Then again, liberty lovers shouldn’t panic just yet: There’s still a strong demand for paper money, as evidenced by the growing popularity in both the US and UK of artisanal cash<\/a> — private currencies that feature images of everything from onions to 70s glam rocker David Bowie. (And, yes, it’s legal.)<\/p>\n

Credit:<\/strong><\/span> Speaking of currencies, Russian President Vladimir Putin has drafted a bill that would eliminate the dollar<\/a> from trade between countries of the former Soviet Union — lest you need more proof that the world is feverishly working to kill dollar hegemony. It’s coming folks.<\/p>\n

Debit:<\/strong><\/span> The day the dollar finally falls off its perch is the day when everyone will finally discover that the buck is nothing more than a paper promise — an IOU backed by nothing more than confidence. That’s also the day Americans will see a dramatic reduction in their standard of living<\/a>.<\/p>\n

Debit:<\/strong><\/span> Some people are already aware of that fact, which may explain why a truck carrying real<\/em> money — 16 metric tons of silver, to be exact — was stolen from the Port of Montreal<\/a> last week. Hey, who says all criminals are dumb?<\/p>\n

Credit:<\/strong><\/span> The good news is four suspects were apprehended<\/a> a few days after the heist — although 70% of the silver is still missing. Call me crazy, but something tells me the authorities are going to have a hard time finding the rest of it.<\/p>\n

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

Yes, the dollar’s death throes are becoming more obvious with each passing day, but let’s get to the important news: Week 1 of the National Football League is finally here! Of course, that also means it’s pizza season — so here are a few stats on this fan-food favorite:<\/p>\n

5,000,000,000<\/strong><\/span><\/span> Number of pizzas sold worldwide each year.<\/p>\n

60<\/strong><\/span><\/span> Percentage of all pizzas that are sold in the US.<\/p>\n

70,000<\/strong><\/span><\/span> Pizzerias in the US.<\/p>\n

65<\/strong><\/span><\/span> Percentage of pizzerias in the US that are independent.<\/p>\n

350<\/strong><\/span><\/span> Slices of pizza eaten every second.<\/p>\n

83<\/strong><\/span><\/span> Percentage of pizzerias that offer delivery.<\/p>\n

252,000,000<\/strong><\/span><\/span> Pounds of pepperoni consumed on pizzas annually.<\/p>\n

61<\/strong><\/span><\/span> Percentage of Americans who prefer thin crust pizza.<\/p>\n

46<\/strong><\/span><\/span> The average number of pizza slices a person eats in a year.<\/p>\n

Source: Statistic Brain<\/a><\/em><\/p>\n

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

[poll id=”79″]<\/p>\n

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

What’s your favorite food cooked on the grill?<\/p>\n