Welcome to another exciting edition of Black Coffee, your unusual weekly digest of what’s going on in the world of money and personal finance.
I hope everyone has had a great week. And with that, let’s get straight to this week’s commentary, shall we?
The hardest thing to explain is the obvious that everyone has decided not to see.
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Credits and debits
Debit: Have you seen this? According to Kelly Blue Book: “The $20,000 vehicle is now largely extinctand many price-conscious buyers are on the sidelines or active in the used vehicle market.” Imagine that. And here’s a big reason why:
Debit: Meanwhile, a new study has shown this to be correct 40% of workers between the ages of 61 and 65 are financially on track for retirement and will have sufficient income to finance their current lifestyle until retirement. The rest are expected to fall short. In fact, the average 61 to 65 year old will have an annual pension shortfall of $9,000, representing a 24% shortfall in their financing needs. As for why so many near-retirees have underfunded their retirement savings, well… that is easy to explain:
h/t: @duediligenceguy
Credit: The good news is that here in America the 401(k) contribution limit for employees under the age of 50 is being increased $24,500 in 2026. Workers age 50 and older can contribute up to $32,500 into their 401(k)s next year, while the limit for workers age 60 to 63 is even higher at $35,750. Even better, it is for the tax official can take a bite of the apple. Not that anyone should feel sorry for him these days…
Credit: Of course, near-retirees who have insufficient savings Doing have a few other options available to them. For example, working longer, tapping into home equity and spending less are just three examples – but these strategies will not be palatable to everyone. Especially the last one. Well… at least when it comes to couples this:
Debit: Speaking of equity – or lack thereof – nearly 875,000 homeowners now have it underwater mortgages. That is, they owe more on their home loans than their properties are worth. That is the highest level in three years. Economists blame falling house prices and higher borrowing costs for putting pressure on household finances. The good news is that there is no need to panic. We have the Fed and its cadre of supportive federal bureaucrats to guide us away from any financial storms on the horizon. Oh, wait…
Debit: In connection with this, the number of evictions is also increasing. In fact, more than 101,000 properties received applications in the third quarter 17% higher than a year earlier. The good news is that these numbers are at a historically low level. Maybe That The purpose of this is to solve the so-called housing shortage (which is actually a case of market mispricing, courtesy of the Fed). Ahem…
Debit: Despite a strong finish on Friday, the three major stock indexes still posted big losses this week. Both the S&P 500 and the Dow Jones finished in the red with a loss of 2%, while the Nasdaq lost 2.7% over the five-day period. By the way, did you know that the so-called “Magnificent 7 stocks” currently make up more than 36% of the S&P 500’s total market cap – and 20% as a result of exclusively to NVIDIA? It’s true. Hi… that is the sign of a healthy market! Or not…
h/t: @Tera.
Credit: So…Wall St. is starting to feel the pressure of a struggling economy? Well… as macro analyst Greg Mannarino notes, our fraudulent, debt-based monetary system “now requires repeated injections of liquidity through a crisis-by-crisis mechanism. life support is an end-stage story that is eroding the American economy, the middle class, small businesses and industry. Once you have issued debt to buy up your own debt – which is exactly what is being done now – you have admitted that the destruction of purchasing power is the last lever.” That’s no joke, folks. And we’re pretty sure most people would agree that neither is this:
Credit: It is no coincidence that the astute macro analyst Franklin Sanders came to the same conclusion, but from a different perspective. He pointed out that “after 232 years, the U.S. currency finally stopped making money; it cost 3.7 cents to make. Don’t fool yourself – this is the death knell for the US dollar (USD).” Well… it certainly still is another sign of the USD’s failure as a long-term store of value. The good news is that this move will save $56 million annually. It doesn’t matter that the federal government spends so much with $7 trillion in annual expenditures every three days. Let’s hope the gold in Fort Knox is still there…
Credit: We’ll end this week by letting Mr. Sanders finish his thoughts on the failing USD. he says: “The historic debasement and complete removal of metal content from coins is a sign that the (currency) dies. Consider the progress: In 1934, gold was confiscated and removed from U.S. coinage. In 1964, silver was removed from American dimes, quarters and halves. And in 1982, they removed the copper from the penny and replaced it with copper-coated zinc. Now the US Mint has even stopped minting zinc pennies. History warns you all. Heed it.” It’s wise advice, but the clock is ticking. Whether you follow it in time – or not – is entirely up to you.
By the numbers
A new study has identified where people are most at risk of credit damage and foreclosure in America’s 100 largest cities by analyzing proprietary user data from the first two quarters of this year. The US city with the lowest default rate is San Francisco at 2.8%. Here are the 10 cities with the highest Mortgage arrears in 2025:
14.5% Lubbock, TX
14.7% El Paso, Texas
14.8% Greensboro, NC
15.0% New Orleans, LA
15.4% Baltimore, MD
15.8% Philadelphia, PA
15.9% Baton Rouge, LA
16.8% Newark, NJ
18.7% Detroit, MI
23.9% Laredo, Texas
Source: WalletHub
The question of the week
The results of last week’s survey
I forgot to ask a question last week. Sorry about that!
If You If you have a question that you would like to see here, please send it to me Len@LenPenzo.com and be sure to include “Question of the Week” in the subject line.
Useless news: the 19th hole
Two boys grow up together, but after college one moves to Georgia and the other to Texas. They agree to meet in Florida every ten years to play golf and catch up on each other’s stories.
At the age of 32, they meet, finish their round of golf and go to lunch.
“Where do you want to go?”
“Hooters!”
“Why Tooters?”
“They have these servers with big breasts, tight shorts and beautiful legs.”
“Perfect!”
At the age of 42 they met and started playing golf again. When the round ended, it was time to hit the 19th hole again.
“Where do you want to go for lunch?”
“Hooters!”
“Again? Why?”
“They have cold beer, big TVs and side activities during the games.”
“Yes boy! Let’s do it!”
At the age of 52 they meet and play again. When the round was over, it was time to eat.
“So, where do you want to go for lunch?”
“Hooters.”
“Why?”
“The food is quite good and there is plenty of parking.”
“OK.”
At the age of 62 they meet again. After the round of golf someone says, “Where do you want to go?”
“Hooters.”
“Why?”
Wings are half price and the food is not too spicy.
“Good choice.”
At the age of 72 they meet again. After a round of golf, people say again: “Where are we going to have lunch?”
“Hooters.”
“Why?”
“They have six handicapped parking spaces right by the door and they have senior discounts.”
“Great choice.”
At the age of 82 they meet and play again.
“Where should we go for lunch?”
“Hooters.”
“Why?”
“Because we’ve never been there before.”
“I can’t argue with that. Let’s give it a try!”
(h/t: GLH)
Squirrel Cam
Sometimes the meek squirrels have to wait their turn…
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More useless news
Here are the top five articles I reviewed 52,021 weekly email subscribers and other followers from the past 30 days (excluding Black Coffee posts):
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- How to Buy and Sell Precious Metals Legally in the United States
- Outrageous pizza delivery fees are here to stay (and it’s your fault)
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