{"id":37092,"date":"2016-04-30T05:15:11","date_gmt":"2016-04-30T12:15:11","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=37092"},"modified":"2024-09-17T15:18:26","modified_gmt":"2024-09-17T22:18:26","slug":"black-coffee-not-tonight-honey-ive-got-a-headache","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id37092-black-coffee-not-tonight-honey-ive-got-a-headache.html","title":{"rendered":"Black Coffee: Not Tonight, Honey … I’ve Got a Headache"},"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> Let’s get this week’s news from the People’s Socialist Paradise of VenezuelaTM<\/span><\/sup> out of the way early, shall we? The Utopian politicians there who promised the wide-eyed proles that government would make life better by giving them everything they need, can’t even provide electricity<\/a> now. Forward!<\/p>\n

Debit:<\/strong><\/span> As usual, socialism has succeeded in making everyone equal — equally miserable. Well … except for the Venezuelan politicians and their family members<\/a> who are still running the show. Besides, daily four-hour rolling blackouts are a small price to pay for La Revolucion!<\/em><\/p>\n

Debit:<\/strong><\/span> On a related note, the recently-deceased former artist known as Prince once had a backing band called The Revolution. I wonder what he’d say if he knew the government is going to end up with more than half<\/a> of his $500-million estate, redistributing his hard-earned wealth as it sees fit. I do<\/em> know this: the pols in St. Paul and Washington are gonna party like it’s 1999!<\/p>\n

Debit:<\/strong><\/span> In case you haven’t noticed, some data suggests the economy may be on its deathbed too. In the US, year-over-year orders for core durable goods — stuff like washing machines, consumer electronics and other big-ticket items — fell for the 14th consecutive month<\/a>. One. Four. How can that be if the US isn’t in a recession? Anyone? Bueller?<\/a><\/p>\n

Credit:<\/strong><\/span> On second thought … strike that last question. I don’t want to be publicly ridiculed as one of those cuckoo “booming economy deniers.” No, siree. After all, I’m sure the true state of the economy is “settled science.” Just like global warming<\/del> climate change. Oh wait …<\/a><\/p>\n

Credit:<\/strong><\/span> Frankly, I’m still waiting for somebody to explain this to me: If the US economy is so rosy, why are interest rates still hopelessly stuck at the zero-bound? (Actually, I know the answer<\/a>. I’m just looking for a good laugh.)<\/p>\n

Debit:<\/strong><\/span> The fact of the matter is the world economy cannot get better until the current ailing dollar-based international monetary system finally kicks the bucket. In the meantime, the world’s central banks will continue monetizing debt and propping up the markets<\/a> at all costs to keep it from collapsing. Well … until they can’t.<\/p>\n

Debit:<\/strong><\/span> How phony are the markets today? One example: The Bank of Japan is now a Top 10 owner in 90% of all Japanese stocks<\/a>. That’s not how capitalism is supposed to work, folks. What do you think would happen to stock prices if the BoJ ever decided to exit their position?<\/p>\n

Credit:<\/strong><\/span> Billionaire business magnate Carl Icahn is warning that the markets are overpriced and will soon face a day of reckoning<\/a>. Of course they’re overpriced, Carl — they’ve been artificially juiced on all of that central bank funny money that’s been printed since 2009. Just ask the BoJ.<\/p>\n

Debit:<\/strong><\/span> Then again, maybe the BoJ should<\/em> consider buying a few Apple shares. After Apple posted its first quarterly revenue decline in 13 years<\/a>, its stock plunged more than 8% last Tuesday — and it has lost almost 18% in the last two weeks.<\/p>\n

Debit:<\/strong><\/span> Meanwhile, after a run of more than 75 years, Exxon Mobil saw its credit rating downgraded<\/a> to less than AAA. That leaves just two AAA-rated companies in the “booming” US economy: Microsoft, and Johnson & Johnson, which makes, among other things, Tylenol.<\/p>\n

Credit:<\/strong><\/span> By the way, it’s no coincidence that Microsoft and Johnson & Johnson go together like peanut butter and chocolate … as anyone who’s ever been forced to use Microsoft software well knows.<\/p>\n

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

Before Financial Literary Month comes to a close, here’s a look at some performance figures of the most — and least — financially savvy states:<\/p>\n

287%<\/strong><\/span><\/span> Hawaii’s percentage of per capita debt related to median household income. That’s the worst in the nation.<\/p>\n

4.3%<\/strong><\/span><\/span> The foreclosure rate in New Jersey. No state is worse.<\/p>\n

23%<\/strong><\/span><\/span> Percentage of Hawaiians and Nevadans who spend more than they earn each year. Among all 50 states, that’s the bottom of the pack.<\/p>\n

53%<\/strong><\/span><\/span> Percentage of Arizona households with a rainy day fund — that’s best in the US.<\/p>\n

1.5%<\/strong><\/span><\/span> North Dakota’s auto loan delinquency rate. No other state can beat that figure.<\/p>\n

1<\/strong><\/span><\/span> Minnesota’s rank among the most financially savvy states. (Worst state: Missouri)<\/p>\n

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

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

If you found a $100 bill on a retail store floor, what would you do?<\/p>\n