{"id":42064,"date":"2017-03-25T05:15:49","date_gmt":"2017-03-25T12:15:49","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=42064"},"modified":"2024-01-27T11:15:42","modified_gmt":"2024-01-27T19:15:42","slug":"black-coffee-pardon-my-french","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id42064-black-coffee-pardon-my-french.html","title":{"rendered":"Black Coffee: Pardon My French"},"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

Okay, let’s get right to it this week …<\/p>\n

The F-word here, is ‘focus<\/span><\/strong>‘.<\/em><\/p><\/blockquote>\n

— Jan Koum<\/strong><\/p>\n

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

Credit:<\/strong><\/span> I see officials in the People’s Socialist Paradise of Venezuela are now threatening to expropriate bakeries<\/a> which fail<\/strong><\/span> to abide by new government regulations aimed at stopping bread shortages. After all, everybody knows that when it comes to running a panadaria<\/em>, nobody can do it better than a paper-pushing Caracas bureaucrat. Frankly, it makes you wonder why they didn’t think of that earlier.<\/p>\n

Credit:<\/strong><\/span> Of course, the rocket scientists that make up Venezuela’s socialist government have absolutely no idea that those annoying bread lines and flour shortages are entirely the result of their own meddling regulations<\/a> and price controls that interfere with the free market. Forward!<\/strong><\/span><\/p>\n

Debit:<\/strong><\/span> Speaking of socialist, um, paradises … San Francisco is facing a $848 million budget shortfall — despite a 3.2% unemployment rate and the typical home selling for more than $1 million. The reason: increases in government retirees’ gold-plated pension payments<\/a> and other city employee payroll costs. Obviously, this wouldn’t be an issue if “the rich” paid their “fair share<\/strong><\/span>.”<\/p>\n

Debit:<\/strong><\/span> In case you missed it, last week the Fed raised interest rates another 25 basis points. However, by hiking rates in a struggling economy, the Fed is actually playing a dangerous game<\/a> of “chicken” — essentially pretending all is well. If the Fed is wrong, then the more they try to convince markets otherwise, the more they risk triggering a financial crisis<\/strong><\/span>.<\/p>\n

Credit:<\/strong><\/span> Meanwhile, in an article at TheAntiMedia.org, Carey Wedler highlights one potential sign of a struggling economy: the “retail apocalypse<\/a>” that’s officially falling<\/strong><\/span> upon America. Er … just in case you’ve been living under a rock for the past five years and hadn’t noticed.<\/p>\n

Debit:<\/strong><\/span> To be sure, the implosion of the retail sector — at least when it comes to folding<\/strong><\/span> brick-and-mortar businesses — is accelerating, as evidenced by the 3500 retail outlets<\/a> that are officially scheduled to close within the next few months. No — that’s not a typo.<\/p>\n

Debit:<\/strong><\/span> Those shuttered stores are the continuation of a frightening<\/strong><\/span> trend that’s only going to get worse too. In fact, the US Census Bureau reports that US department store revenue today is 36% lower<\/a> than it was in 2001. Yikes.<\/p>\n

Credit:<\/strong><\/span> Of course, as you might expect, Internet sales are now more than three times that of department stores — which is why there are those who fault<\/strong><\/span> the retail sales slump solely on a change in consumers’ buying habits<\/a>. In other words, what’s really occurring is not<\/em> a retail apocalypse, but a retail revolution<\/em>.<\/p>\n

Credit:<\/strong><\/span> Legendary trader Art Cashin notes that retail revolutions<\/a> are neither rare nor<\/em> permanent. Although Sears is flatlining<\/strong><\/span> today, 50 years ago it was so popular that 1 out of every 200 (!) US employees worked there. It’s the same story with Blockbuster: as recently as 2004, the video chain had 8000 stores — now they have 50. Those who say WalMart — or Amazon — is invincible should remember that.<\/p>\n

Credit:<\/strong><\/span> Even so, longtime retail analyst Howard Davidowitz isn’t buying the retail revolution argument. He passionately proclaims that stores are closing because customers no longer have, ahem … if you’ll pardon his French: “the fucking money<\/a>.” Period. End of story. That’s true for most people living on Main Street. Unfortunately, the Fed only worries about Wall Street.<\/p>\n

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

The home selling season is heating up. To make yours stand out from a crowded field, many experts recommend staging it:<\/p>\n

96%<\/strong><\/span><\/span> Percentage of homebuyers who report that they were at least partially affected by home staging.<\/p>\n

81%<\/strong><\/span><\/span> Percentage of homebuyers who say staged properties are easier to visualize compared to those that are not staged.<\/p>\n

34%<\/strong><\/span><\/span> Percentage of realtors who say they stage all of their homes.<\/p>\n

3<\/strong><\/span><\/span> Number of times faster that staged homes sell over a non-staged homes.<\/p>\n

5%<\/strong><\/span><\/span> Maximum increase in price the typical homebuyer is willing to pay for a staged home.<\/p>\n

$675<\/strong><\/span><\/span> The median cost to stage a home.<\/p>\n

Sources: Tallahassee Democrat<\/a>; NAR<\/a><\/em><\/p>\n

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

[poll id=\"156\"]<\/code><\/p>\n

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

Excluding credit card debt, how many loans are you currently making payments on?<\/p>\n