{"id":50163,"date":"2018-07-28T04:15:53","date_gmt":"2018-07-28T11:15:53","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=50163"},"modified":"2023-01-14T12:24:24","modified_gmt":"2023-01-14T20:24:24","slug":"black-coffee-the-fast-and-the-financially-furious","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id50163-black-coffee-the-fast-and-the-financially-furious.html","title":{"rendered":"Black Coffee: The Fast and the Financially Furious"},"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

Well … another glorious week has come to an end. Let’s get right to it …<\/p>\n

“Credit has a wicked way of magnifying a person’s defects. Even the most cautious man, with unlimited credit, can make mistakes that in retrospect seem absurd. But an average man, with unlimited credit, is preeminently disposed to going full imbecile.”<\/em><\/p><\/blockquote>\n

— MN Gordon<\/strong><\/p>\n

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

Credit:<\/strong><\/span> I’m sure the great majority of the general public couldn’t tell you what the G-20 is — so it is probably a safe bet that very few people noticed that the latest G-20 communique removed their long-standing pledge<\/a> to refrain from competitive currency devaluations — a.k.a. currency wars. That’s just another sign that the international monetary system — and the US dollar that “anchors” it — is on its last legs.<\/p>\n

Debit:<\/strong><\/span> In other news, a new study warns that oil prices could rise to $200 per barrel<\/a> in the next 12 to 18 months. If that’s not bad enough, the analysis also predicts a 2020 economic collapse based on those rising oil prices, plus a diesel fuel shortage. Wow. It’s a good thing Ford decided in April to stop selling every sedan<\/a> model except the Mustang and Focus in favor of expanding their truck and SUV offerings.<\/p>\n

Credit:<\/strong><\/span> One thing is certain: If there is<\/em><\/strong> an economic collapse, it’s going to have to wait a little while longer because last quarter’s GDP print came in at 4.1% — that’s the fastest pace in four years<\/a>. Hooray!<\/p>\n

Debit:<\/strong><\/span> On the other hand, don’t get too excited, because there are a growing number of signs that all is not<\/em> well with the US economy. For example, California produced just 800 new jobs in June<\/a>. That wouldn’t be so bad if California’s population was equivalent to, say, Poughkeepsie or Woonsocket — but it’s not.<\/p>\n

Debit:<\/strong><\/span> Perhaps the Golden State’s poor employment climate is why sales of both new and existing houses and condos there last month plunged 12% from a year earlier<\/a> — despite SoCal home prices reaching an all-time high. Then again, I’m sure that’s nothing all those “easy money” home flippers need to worry about; the data is probably just one of those statistical aberrations … or something.<\/p>\n

Debit:<\/strong><\/span> California ain’t the only place that is suddenly having trouble finding homebuyers for over-priced real estate. In New York City, even the cheapest homes are stuck waiting<\/a> for one of those once-plentiful greater fools<\/del><\/span> home shoppers to swoop in and save them.<\/p>\n

Debit:<\/strong><\/span> Did you see this? Before Wednesday’s close, Facebook (FB) was racing along, trading at a new record high. Then it announced a revenue miss and projected slowdown — and its stock almost immediately fell 24%<\/a>, wiping out $132 billion in market value and erasing all of its post-Q1 earnings gains. Imagine that.<\/p>\n

Credit:<\/strong><\/span> Yes, Facebook’s furious free fall happened in the blink of an eye. Fortunately for us, the entire episode was caught on tape:<\/p>\n