{"id":60450,"date":"2020-04-11T02:15:07","date_gmt":"2020-04-11T09:15:07","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=60450"},"modified":"2020-04-13T19:31:42","modified_gmt":"2020-04-14T02:31:42","slug":"black-coffee-11-apr-2020","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id60450-black-coffee-11-apr-2020.html","title":{"rendered":"Black Coffee: Running on Empty"},"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

And the financial crisis rages on, so let’s get right to this week’s commentary …<\/p>\n

Modern Monetary Theory (MMT) is to economics what astrology is to astronomy, alchemy is to chemistry, and quackery is to medicine.<\/em><\/p><\/blockquote>\n

— Markus Krall<\/strong><\/p>\n

We abandoned free market principles to save the free market system.<\/em><\/p><\/blockquote>\n

— George W. Bush (16 Dec. 2008)<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? Chicago Mayor Lori Lightfoot issued an executive order this week allowing illegal immigrants in the city, regardless of birth country or current citizenship status, access to municipal relief funds<\/a> amid the coronavirus pandemic. Unbelievable.<\/p>\n

Debit:<\/strong><\/span> Meanwhile, thanks to all of the sage politicians and government healthcare bureaucrats whose edicts have crippled the economy in response to the coronavirus, 17 million Americans have lost their jobs — in the past three weeks alone. I know; but it was sooooo<\/em><\/strong> worth it. As of Thursday, only 1132 jobs have been lost<\/a> for every COVID-19 death. (Psst. I hope the dripping sarcasm was obvious.)<\/p>\n

Debit:<\/strong><\/span> What’s truly frightening is the true economic damage we’ll all<\/em><\/strong> be facing — regardless of whether or not we lose our jobs — is just getting started. For example, just 69% of US tenants paid any rent<\/a> during the first week in April; compare that to last year when 81% covered their rent for the same week in March and 82% in April 2019. You’re fooling yourself if you think the effects of those missed payments won’t eventually affect the broader economy; that pain hasn’t even started<\/strong><\/em> yet.<\/p>\n

Debit:<\/strong><\/span> And it’s not just renters — as of April 1st, the total number of US mortgages in forbearance grew to 2.66%<\/a>. To put that in perspective, last month the rate was just 0.25% — that’s a 1064% increase. No, no … I didn’t forget a decimal point. By the way, this is only going to get worse too — which is why bankers and mortgage lenders all across the country are shaking in their fancy Italian shoes. As they should. And so should you — even if you don’t own a pair.<\/p>\n

\n

Have you noticed?
\nThe skies no longer have jet trails. pic.twitter.com\/xTN1gRiPBm<\/a><\/p>\n

Sven Henrich (@NorthmanTrader) April 10, 2020<\/a><\/p><\/blockquote>\n