{"id":84542,"date":"2024-09-07T01:00:47","date_gmt":"2024-09-07T08:00:47","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=84542"},"modified":"2024-09-11T14:07:10","modified_gmt":"2024-09-11T21:07:10","slug":"black-coffee-battle-stations","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id84542-black-coffee-battle-stations.html","title":{"rendered":"Black Coffee: Battle Stations!"},"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’ve got another busy weekend ahead of me, so let’s get right to this week’s commentary …<\/p>\n

Damn the torpedoes; full speed ahead!<\/em><\/p><\/blockquote>\n

— David Farragut<\/strong><\/p>\n

Change is the essential process of all existence.<\/em><\/p><\/blockquote>\n

— Mr. Spock, Star Trek<\/em><\/strong><\/p>\n

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

Debit:<\/strong><\/span> Did you see this? The typical down payment for US homebuyers hit a record high<\/a> of $67,500 in June – that\u2019s almost 15% higher than the same time last year, when the average down payment was just under $59,000. Sadly, even that<\/strong><\/em> amount was still too high. What America needs is a very sharp housing market correction; think a minimum of 50% lower from here. The trouble is, as long as the Fed keeps the currency spigots wide open, the chances of that type of downturn occurring are slim and none.<\/p>\n

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Twas a time when a homebuyer was considered to be stretching their financial situation when their price-to-income ratio was higher than 3. (Source: Harvard Univ.)<\/em><\/p><\/div>\n

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Debit:<\/strong><\/span> Of course, the rising cost of living – despite government claims to the contrary – is a big reason why a growing number of Americans are struggling to makes ends meet<\/a> in the current economy. And now a new survey has found that two-thirds of us believe that the American Dream is unattainable. Imagine that.<\/p>\n

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Debit:<\/strong><\/span> By the way, another survey found that the average family needs more than $150,000 to live “the American Dream<\/a>.” For example, on the high end it takes an annual income of $261,000 for a family of four in Hawaii, while on the low end that same family needs \u201conly” $110,000 in Mississippi to live the American Dream. The good news is the government has finally developed a plan to stop inflation in its tracks …<\/p>\n

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Debit:<\/strong><\/span> On a related note, a new survey has found that 46% of Americans said they view credit-card balances as higher than usual<\/a>. Ironically, that percentage was even higher (68%) among those with an annual household income of more than $150,000. Not to mention people like this …<\/p>\n

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Debit:<\/strong><\/span> Ironically, Dollar General reported a catastrophic earnings drop<\/a> last quarter, blaming a “financially constrained core consumer\u201d for their sales woes. The losses were so bad that by the end of the day its stock fell more than 32% on the news. Meanwhile, back at company headquarters …<\/p>\n