{"id":48450,"date":"2018-04-21T04:15:17","date_gmt":"2018-04-21T11:15:17","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=48450"},"modified":"2018-04-23T20:03:18","modified_gmt":"2018-04-24T03:03:18","slug":"black-coffee-21-april-2018","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id48450-black-coffee-21-april-2018.html","title":{"rendered":"Black Coffee: And … It’s Gone"},"content":{"rendered":"

\"\"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, away we go …<\/p>\n

“We inflate our paper currency, we repair commerce with unlimited credit, and are presently visited with unlimited bankruptcy.”<\/em><\/p><\/blockquote>\n

— Ralph Waldo Emerson, The Young American<\/em>, 1844<\/strong><\/p>\n

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

Debit:<\/strong><\/span> A couple weeks ago some lucky person who bought a lottery ticket in New Jersey, won a $521 million lottery jackpot<\/a>. Even so, the winner may not<\/em> be set for life because studies show that lottery winners are more likely to declare bankruptcy<\/a> within five years than the average American. It’s true. In fact, nearly one-third of all<\/em> lottery winners eventually end up declaring bankruptcy. Hmm. Why am I not surprised?<\/p>\n

Debit:<\/strong><\/span> If you think that’s amazing, check this out: Yet another study found that people who live next door to a lottery winner see their own<\/em> risk of bankruptcy increase by 2.4%. No, really<\/a>. Apparently, this is because lottery-winner lifestyle upgrades end up inducing their neighbors to keep up with the Joneses … eses.<\/p>\n

Debit:<\/strong><\/span> Speaking of bankruptcies, a new report from investor research firm Moody’s confirms that bankruptcies in the retail sector<\/a> hit an all-time high during the first quarter of 2018. Sears and Claire’s are among nine retailers that defaulted on their debt during the first quarter, despite the healthy economy. Or should I say, “supposedly” healthy?<\/p>\n

Debit:<\/strong><\/span> I say “supposedly” because although stocks are trying to make another run toward new highs, and the economy is at, heh, “full employment,” the yield curve for US Treasuries<\/a> is falling at a rapid pace and will soon be inverted. And this week Fed governor John Williams admitted that “an inverted yield curve is a powerful recession signal.” Uh oh. Well … the bond market isn’t considered “the smart money” for nothing, folks.<\/p>\n

Debit:<\/strong><\/span> In other news, despite Venezuela’s abundance of natural resources, two decades of socialism has resulted in a nation that is now unable to provide enough food<\/a> for its citizens — proving yet again that socialism’s free-lunch mindset is an unsustainable proposition that can only lead to failure and misery. And you thought winning the lottery was risky.<\/p>\n

Credit:<\/strong><\/span> Then again, even something as noble as trying to save just a small portion of your hard-earned money is riskier than ever these days …<\/p>\n