{"id":80229,"date":"2023-09-16T01:15:33","date_gmt":"2023-09-16T08:15:33","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=80229"},"modified":"2023-09-19T07:27:38","modified_gmt":"2023-09-19T14:27:38","slug":"black-coffee-16-sep-2023","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id80229-black-coffee-16-sep-2023.html","title":{"rendered":"Black Coffee: Account Overdrawn"},"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

Well … another busy week is behind us. So with that in mind, let’s get this party started …<\/p>\n

As long as we live beyond our means, we are destined to live beneath our means.<\/em><\/p><\/blockquote>\n

– Ron Paul<\/strong><\/p>\n

How can I be broke? I still have checks.<\/em><\/p><\/blockquote>\n

– Anonymous<\/strong><\/p>\n

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

Credit: <\/strong><\/span>Did you see this? The average monthly payment for home borrowers using a 30-year fixed rate mortgage in July was $2306 – that’s the highest based on records dating back to 2000. That’s a gain of $871 in just two years<\/strong><\/em>. Now tack on taxes and insurance, which averages an extra $550 per month. As Charles Hugh Smith points out, over the last 25 years, “the (Fed) has created $55 trillion out of thin air; a consequence of decades of unprecedented stimulus<\/a> that gave the wealthiest households the means to bid up housing so it’s no longer affordable to the bottom 90%.” Yes. And don\u2019t forget years of artificially-suppressed rates too.<\/p>\n

\"\"<\/p>\n

\"\"<\/p>\n

Debit: <\/strong><\/span>So \u2026 just how fast have home prices been rising? Well \u2026 it turns out that 51% of homeowners who purchased in July are paying $2000 or more a month – that’s up from 18% just two years ago. Yikes. Additionally, 23% of new homeowners had payments of more than $3000<\/a>, up from 5% in 2021. Thanks again, Fed. It makes me wonder if our central bankers have been getting lessons on how to be “helpful” from our four-legged friend here …<\/p>\n