{"id":38186,"date":"2016-07-09T05:15:10","date_gmt":"2016-07-09T12:15:10","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=38186"},"modified":"2022-07-31T08:51:12","modified_gmt":"2022-07-31T15:51:12","slug":"black-coffee-yes-bernie-we-have-no-bananas","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id38186-black-coffee-yes-bernie-we-have-no-bananas.html","title":{"rendered":"Black Coffee: Yes, Bernie, We Have No Bananas"},"content":{"rendered":"

\"black<\/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

Credit:<\/strong><\/span> After adding a paltry 11,000 jobs in May, the US supposedly managed to add 287,000 positions<\/a> last month. Sorry, folks, but I’m not buying it.<\/p>\n

Debit:<\/strong><\/span> Apparently, the bond market ain’t buying it either, as yields continue to scream that the economy is in a nasty recession — and headed for a depression. In fact, 10-year Treasury yields hit an all-time low<\/a> this past week, after the 30-year rate hit its historical low<\/a> a week prior. Folks … something is rotten in America. Somewhere.<\/p>\n

Debit:<\/strong><\/span> Please pardon my cynicism toward any government data<\/a> or information. But if you had any<\/em> doubt Americans have been living in a banana republic for years now — any doubt at all — then the pathetic event<\/a> that occurred last Wednesday should put that to rest once and for all. God help us.<\/p>\n

Credit:<\/strong><\/span> Count David Stockman as another financial guru who says the economy isn’t nearly as rosy as government and Fed officials desperately want<\/del> need us to believe. According to Stockman, “Our monetary Humpty-Dumpty is heading for a great fall<\/a>.” Finally! Economics explained in terms even pre-schoolers and socialists can understand.<\/p>\n

Credit:<\/strong><\/span> Okay … Upon further reflection, that’s probably still<\/em> too complicated<\/a> for the socialists. Forward!<\/p>\n

Debit:<\/strong><\/span> But seriously, how can anybody say with a straight face that the American economy is doing well when US factory orders just declined for the 19th consecutive month<\/a>. Yes, 19<\/em>. That’s never happened during the 60 years that particular statistic has been tracked. At the same time, US stock indices are near their all-time highs<\/a>. I’m sure there’s a logical explanation. Or not.<\/p>\n

Debit:<\/strong><\/span> Across the pond, a large number of UK property funds began freezing assets and suspending redemptions<\/a> this week, signaling the start of a collapsing real estate market bubble that’s been building there for years. Yes, I know: UK realtors are still insisting that, “It’s never been a better time to buy!TM<\/sup>”<\/p>\n

Credit:<\/strong><\/span> The situation in the UK is a stark reminder why those who exit any kind of financial panic first, always exit best. The trouble is, that usually only applies to the first 0.00001% of those who want to leave. And I suspect that<\/em> figure may be too large.<\/p>\n

Debit:<\/strong><\/span> Meanwhile, Italy’s $2.2 trillion banking system is on the verge of collapse<\/a> as nearly 20% of their loans are considered non-performing — that is, they aren’t worth the paper they’re printed on. Or putting it more bluntly: the Italian financial system is hanging by a thread<\/a>. Other than that, everything’s great in Europe. No, really! Just fine. Yesiree …<\/p>\n

Debit:<\/strong><\/span> Folks, the entire globe is stuck in a Weekend at Bernie’s economy — where those in power are trying to convince us everything is fine, despite the presence of certain economic indicators that are immune from manipulation.<\/p>\n

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