{"id":78931,"date":"2023-06-10T01:15:53","date_gmt":"2023-06-10T08:15:53","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=78931"},"modified":"2023-06-13T08:16:10","modified_gmt":"2023-06-13T15:16:10","slug":"black-coffee-10-june-2023","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id78931-black-coffee-10-june-2023.html","title":{"rendered":"Black Coffee: The Road to Ruin"},"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

I hope everybody had an enjoyable week. Without further ado, let’s get right to this week’s commentary …<\/p>\n

A national debt, if it is not excessive, will be to us a national blessing.<\/em><\/p><\/blockquote>\n

– Alexander Hamilton<\/strong><\/p>\n

If we take the route of the permanent handout, the American character will itself be impoverished.<\/em><\/p><\/blockquote>\n

– Richard Nixon<\/strong><\/p>\n

Look at our society. Everyone wants to be thin, but nobody wants to diet. Everyone wants to live long, but few will exercise. Everybody wants money, yet seldom will anyone budget or control their spending.<\/em><\/p><\/blockquote>\n

– John C. Maxwell<\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? The FHA just found another way<\/a> to reward people who don’t pay their bills under the guise of “helping struggling homeowners meet their mortgage obligations.” A new program would allow mortgage lenders to bring a borrower’s mortgage current and<\/strong><\/em> provide additional temporary payment reductions for up to five years under a subordinate zero interest lien, which homeowners would then pay back when they sell their home or refinance. Needless to say, nobody is in favor of this. Well … except for delinquent homeowners. Okay, okay … and people who spent six-figures getting a worthless college degree:<\/p>\n

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(h\/t: @FunnyBunnyPOV)<\/p><\/div>\n

Debit:<\/strong><\/span> Meanwhile, a new report found 1 in 3 US homeowners have already dealt with unexpected repairs this year – and 1 in 4 can’t afford<\/a> a $1000 emergency repair. In fact, 39% say they are putting off home repairs in 2023 due to cost, and 41% admit that were forced to choose between a necessary home repair and bills during the past year. If that wasn’t bad enough, the same report also found that 1 in 3 ignored a potential issue in hopes it would go away, while 1 in 6 say they regret buying their home due to repair problems. The good news is, realtors say there’s never been a better time to buy a home. Or repair one …<\/p>\n

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Debit:<\/strong><\/span> On a related note, I see a recent Fed study says that Americans’ self-reported financial well-being fell sharply from last year, and is at the lowest level since 2016<\/a>. Similarly, the share of adults who say their spending in the previous month exceeded their income increased – which explains why the share of Americans who said that their credit card debt increased also is higher than the year before. Then again, I guess that’s to be expected when instant gratification and the fear of missing out is greater than the desire to live within one’s means and save just a wee bit of income for a rainy day, or … something …<\/p>\n

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Debit:<\/strong><\/span> Needless to say, Americans are increasingly reliant on the use of smoke and mirrors to maintain their artificially-high living standard. In fact, total household debt has eclipsed $17 trillion<\/a> for the first time ever – which probably explains why the Welfare Office is busier than ever. Well … at least this<\/strong><\/em> welfare office:<\/p>\n