{"id":61613,"date":"2020-06-27T02:15:27","date_gmt":"2020-06-27T09:15:27","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=61613"},"modified":"2024-01-07T08:22:26","modified_gmt":"2024-01-07T16:22:26","slug":"black-coffee-27-june-2020","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id61613-black-coffee-27-june-2020.html","title":{"rendered":"Black Coffee: Do You Want Fries With That?"},"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

The summer doldrums seem to have hit the financial markets. I assure you this is only temporary, so let’s enjoy them while we can.<\/p>\n

Okay … on to the weekly commentary.<\/p>\n

Never spend your money before you’ve earned it.<\/em><\/p><\/blockquote>\n

— Thomas Jefferson<\/strong><\/p>\n

To contract new debts is not the way to pay old ones.<\/em><\/p><\/blockquote>\n

— George Washington<\/strong><\/p>\n

‘How did you go bankrupt?’ Bill asked.
\n‘Two ways,’ Mike said. ‘Gradually … and then suddenly.’<\/em><\/p><\/blockquote>\n

— Ernest Hemingway, The Sun Also Rises<\/em><\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? According to Bloomberg data, no less than 13 US companies sought bankruptcy protection<\/a> last week, matching the peak of the global financial crisis. The filings, led by the perennially weak consumer and energy sectors, were the most for any week since May 2009. I know. But I’m sure it’s probably nothing to worry about. After all, I’m told we’re in the initial stages of a V-shaped recovery. Ahem. Or not.<\/p>\n

Debit:<\/strong><\/span> Hey … for all you true believers out there of this so-called V-recovery, keep in mind that the Wall St. Journal<\/em> recently reported that 106 million people<\/a> have “enrolled in deferment, forbearance or some other type of relief since March 1.” Folks, this isn’t something that is just going to go away with no long-term ramifications — the reality is we’re sitting on an economic time bomb.<\/p>\n

Credit:<\/strong><\/span> And as market analyst Jeffrey Snider notes, “106 million people in the default pipeline can only mean the clock has started ticking<\/a>; the output of that pipeline is bankruptcy and loss, and wide distribution of both because a consumer who wins bankruptcy relief doesn’t extinguish their obligation — they’ve simply redistributed the loss to the bank or financial firm who first extended the loan.” Imagine that.<\/p>\n

Debit:<\/strong><\/span> Meanwhile, many baby boomers don’t have nearly enough money to retire<\/a>; that’s because the median amount they’ve saved for their golden years is just $144,000, according to a recent survey. You know what that means: When the money runs out, many of them will end up working with these<\/strong><\/em> guys just to maintain their current standard of living …<\/p>\n