{"id":54899,"date":"2019-05-25T02:15:44","date_gmt":"2019-05-25T09:15:44","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=54899"},"modified":"2023-07-12T09:04:26","modified_gmt":"2023-07-12T16:04:26","slug":"black-coffee-25-may-2019","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id54899-black-coffee-25-may-2019.html","title":{"rendered":"Black Coffee: The Global Economy … on the Rocks"},"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

While you’re enjoying the extended Memorial Day weekend here in the good ol’ USA, please try to set aside a brief moment to honor the brave men and women who gave their lives in defense of our nation.<\/p>\n

Okay … now let’s get this show on the road.<\/p>\n

The masses have never thirsted after truth. Whoever can supply them with illusions is easily their master; whoever attempts to destroy their illusions is always their victim.<\/em><\/p><\/blockquote>\n

— Gustave Le Bon<\/strong><\/p>\n

What whiskey will not cure, there is no cure for.<\/em><\/p><\/blockquote>\n

— Irish proverb<\/strong><\/p>\n

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

Credit:<\/strong><\/span> Did you see this? Tesla just cut $3000 off the price<\/a> of its Model S sedan, and $2000 off its Model X SUV. Unfortunately, reducing the prices of its two most expensive models have increased concern that interest in Tesla’s electric vehicles is rapidly waning. Despite consistently struggling to turn a profit, apparently Tesla actually believes it can stop the bleeding by further lowering prices and making it up in volume.<\/p>\n

Credit:<\/strong><\/span> Speaking of Tesla, since topping out at $387.59 last August, its share price has plunged more than 50%<\/a>; it closed the current week<\/a> at $190.63. But I’m sure that has nothing<\/strong><\/em> to do with reports that the drive for cost cutting is now so severe that teams at several Tesla facilities have stopped purchasing office supplies including toilet paper<\/a>. (Insert your own scatalogical joke here. No, go ahead; I’ll wait.)<\/p>\n

Debit:<\/strong><\/span> By the way, Tesla isn’t the only<\/strong><\/em> stock that’s in the doldrums right now. The Dow finished the week in the red for the fifth consecutive time. Yep. The last time the Dow had a five-week losing streak was eight years ago<\/strong><\/em>; June 2011<\/a>, if you want to be precise.<\/p>\n

Credit:<\/strong><\/span> In other news, I see that Jeff Koons’ 41-inch tall “Rabbit” sculpture sold for $91 million last week; that’s the most ever for a living artist, breaking a record that was set just last year. As Jesse Colombo notes, “The art market (is) a barometer for the amount of froth in the global economy and financial markets. When the art market goes ballistic, that’s a sign of an economic cycle in its latter stages<\/a>.” Anyway, here’s what $91 million (commission included) buys today:<\/p>\n