The Jump Start from the Jump Rope

K seemed to be discouraged for two or three lessons in a row, but I knew he had been trying hard. So I told him that he had counted the timing in one of his pieces so well that day that I wanted to give him a little prize, and I gave him a jump rope. (I probably gave him a choice; I kept a few things in the piano bench for times like this).

His mother called later that day and said that on the way over to the lesson, K had told her he wanted to quit lessons that day. But after he got the jump rope, he changed his mind and perked up about practicing and after that there was a noticeable difference in his lessons and his attitude. I learned from that experience, and have given prizes from time to time for very specific improvements in a weak area of a student’s progress. It’s the little things…

I’m so happy that I kept a notebook of these little stories and since packrats keep notebooks forever, it’s been possible to recall these little “you made my day!” stories which I had forgotten about, 20+ years later, and it’s been a sweet treat. These memories, touching and funny, help me to relive the rich experiences I’ve had teaching children. Other than also being a mom, being a teacher is the most rewarding and satisfying activity I can think of, and I’ve especially enjoyed teaching music because it is my number-one favorite pleasure of life – and what could be better than passing this love of music along to somebody else?

To be continued…

***

About the Author: RD Blakeslee (1931 – 2024) built his net worth by only investing in that which can be enjoyed during acquisition and throughout life, as opposed to papers in a drawer, like stocks and bonds. You can read more about him here.

Photos: Courtesy of the Blakeslee Family

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Choose the Right Loan

Whether you’re looking to settle down and buy a home in Chicago or Fresno, consider a Federal Housing Authority (FHA) loan; they’ll allow you to keep more money in the bank for repairs and other costs that you wouldn’t be responsible for when renting.

Unlike conventional loan providers, FHA loans offer:

• Flexible requirements for income
• Moderate credit expectations
• Small minimum down payment

Of course, not everyone who applies for FHA loans can qualify. Here’s how the FHA works in granting loans — and how you can simplify the complex process of a mortgage through FHA.

Understanding FHA Loans

The FHA is a part of the Housing and Urban Development (HUD) that primarily functions to insure loans so that you can get a better deal from your lender. When it comes to FHA mortgages, the money is not provided by the FHA directly to the borrower. Instead, the funds are provided to the borrower via an FHA-approved lender, and the loan is then guaranteed by the FHA.

Fixed vs. Adjustable Rates

A major decision that you need to make while applying for financing is whether to get a fixed- or an adjustable-rate mortgage. A fixed rate allows you to pay the same rate of interest for the life of the loan, while an adjustable rate typically changes over time; FHA loans are available for both types of rates.

Because fixed-rate FHA loans require you to pay the same rate of interest all through the repayment term, the monthly payments that you make will also remain the same, no matter how the economy changes. Many homeowners consider that predictability to be a huge advantage.

In the case of an adjustable rate FHA loan, repayment is at a fixed rate of interest for a few years, but then the interest rate is adjusted annually, fluctuating with rise and fall of the economy. The big advantage of adjustable rate mortgages is that they typically start at a lower interest rate, but you also run the risk of paying higher rates over time.

The Pre-Approval Process

During the pre-approval process for a new home, the lender will review your entire financial situation including debts, income, assets, credit score, and other factors in order to determine the maximum mortgage amount.

The lender will also provide you with a pre-approval letter that you can use while offering to purchase a house. This is important because the chances of a seller accepting your offer are higher if you have a pre-approval letter with you for the loan.

Final Thoughts

The FHA loan underwriting process offers a lot of flexibility in evaluating borrowers’ ability to pay back a mortgage. To find out if you get qualified for FHA financing, talk to an FHA-approved lender.

Photo Credit: Woodley Wonderworks

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If you’re looking for simple ways to not spend as much money, but still get your caffeine fix, here are a few ways you can still enjoy a nice cup of coffee without going broke:

Use cash instead of credit

Using money that is physically in your hand will allow you to realize exactly how much money you’re spending on coffee during any give week. When you use your card, you don’t get to see the money being taken directly out of your account. It’s easy not to think about how much that large caramel-macchiato with soy milk and whipped cream costs when you simply have to swipe a card. By using cash, you’ll have to force yourself to really think about how much money you’re spending on your cup of coffee.

Make sure you’re aware of your expenses

It can be hard to focus when you’re buying your first cup of coffee if your eyes are barely open, but it’s important to realize exactly how much you end up spending on coffee. Recent studies show that on average, Americans drink about 1.64 cups of coffee each day, but many people drink significantly more. While coffee may seem like a small expense at the time, think about how it relates to your other expenses. All of those coffee purchases add up; to prove it, simply calculate how much you spent on coffee during the previous two weeks.

Make your coffee at home

Yes, this may seem obvious. But even when people are fully capable of making a cup of coffee at home, they still choose not to. It’s important to have some self discipline and really think about how much money you could be saving if you made coffee at home. A bag of coffee and coffee filters will not only last longer, but they will cost less than buying a cup of coffee every day. It can also be helpful to make sure you’re making tasty coffee at home. It’s okay to splurge a little on your coffee grounds or beans, because it’s still going to cost less than buying a cup of coffee every day. And now that coffee pods have become ubiquitous, there’s really no excuse for not making your daily cup of joe at home.

It can be difficult to change a habit, especially one that you need to help you get through the work day. But in the long run, your bank account will thank you for making a few simple adjustments to reduce your coffee spending.

Photo Credit: stock photo

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Many years ago, I compiled a list of the 10 most underpaid jobs. The provocative list was a collection of occupations that I felt were grossly under-compensated considering their overall contribution to society; jobs like trauma scene clean-up workers and electrical linemen.

And I still continue to get the occasional nastygram from disgruntled people wondering how I could ever leave their job off my list.

With that in mind, I’ve compiled another list of jobs that aren’t usually well-compensated, but in many cases people sign-up for anyway — sometimes because it’s the only job available. Don’t laugh; this may be truer than ever now that the economy has taken a decided turn for the worse.

Of course, I’m sure many of you are eagerly waiting to see if your job made it here this time. So without further ado, here are ten more under-appreciated low-paying jobs, ranked by their median salary according to the latest US Bureau of Labor Statistics.

Roofers

Median salary: $50,970
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): It’s bad enough having to work high above the ground, on sloped and slippery surfaces, in all types of weather conditions, including the stifling heat of summer. Even worse, roofing is one of the most dangerous professions in America, with an annual fatality rate ten times greater than the overall workforce. For this, they get little more than $23 per hour.

School Bus Drivers

Median salary: $45,830
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): School bus drivers require a unique mix of incredible patience, concentration and driving skills. It can’t be easy driving a large clumsy school bus and maneuvering it into tight spaces with dozens of kids constantly screaming behind you. Considering all the responsibility that they have, school bus drivers perform their jobs admirably day-in and day-out for a relative pittance.

Slaughterers & Meat Packers

Median salary: $38,960
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): If it weren’t for these guys doing all the dirty work, I’d probably be a vegetarian. I suspect a large number of you reading this would be too.

Nursing Aids, Orderlies & Attendants

Median salary: $37,700
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): Being a nurse’s assistant often requires a cast-iron stomach and entails very long hours with sometimes-grumpy and uncooperative patients. Job duties include changing bedpans, inserting catheters, giving sponge baths, and providing other general care and comfort to the sick and injured on a daily basis. It’s one of the most under-appreciated jobs in the world.

Deep Sea Fishermen

Median salary: $35,520
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): Anybody who has watched the Deadliest Catch on Discovery knows how dangerous deep sea fishing is. In fact, it is by far the most dangerous job in America; 60 times deadlier compared to the overall workforce. Among other perils, fishermen risk being dragged overboard after being snagged by hooks, or swept out to sea in bad weather. Think about that next time you pop some fish sticks in the oven.

Couriers

Median salary: $35,000
Do I think they’re underpaid? No.
Why they’re underpaid (or not): My mother-in-law was a courier and I saw how it can be a demanding job — especially if you’re responsible for delivering time-sensitive material in large metropolitan areas with heavy traffic. And while professional drivers have the ninth most dangerous job in America, it’s hard to argue they’re underpaid when there are so many people willing and able to do the job. (Sorry, Mom.)

Telemarketers

Median salary: $34,480
Do I think they’re underpaid? No.
Why they’re underpaid (or not): Telemarketers; you either hate ’em … or don’t own a phone. In fact, I have yet to meet a person who has complained about not getting enough calls from telemarketers. I imagine most telemarketers get an earful several times a day from irate people who don’t appreciate being cold-called at dinner time — or any other time for that matter. Why anyone would be a telemarketer is a mystery to me. It certainly ain’t for the pay.

Childcare Workers

Median salary: $32,050
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): Despite the importance and responsibility tied to the job, a Wall Street Journal survey found that child care workers ranked 186th out of 200 professions based on income, working environment, stress, physical demands and job outlook. In fact, the median salary of the average childcare worker equates to an hourly rate that’s less than what many babysitters get paid.

Maids & Housekeepers

Median salary: $31,000
Do I think they’re underpaid? No.
Why they’re underpaid (or not): Most maid and housekeeper jobs are neither glamorous or lucrative, but it’s a noble profession. Unfortunately, because there is no shortage of people who are both willing and able to do the job – just as there is no shortage of pizza delivery drivers – housekeepers’ wages will always remain woefully depressed. That’s Economics 101.

Ambulance Drivers

Median salary: $29,600
Do I think they’re underpaid? Yes.
Why they’re underpaid (or not): Talk about a high-pressure job; ambulance drivers are almost always working in life-or-death situations. Many are trained as emergency medical technicians. The job is both physically and emotionally demanding, and usually requires an irregular work schedule. For $15 per hour it hardly seems worth it.

So that’s it, folks. And if I once again left your job off the list, don’t despair because, believe it or not … the grass usually isn’t greener on the other side of the fence.

Photo Credit: Bill Ward

The post 10 Thankless Jobs That People Accept Despite the Tiny Paycheck appeared first on Len Penzo dot Com.

Luckily, there are lots of creative ways to earn extra money during school. Here are seven examples:

Apply for Scholarships

Scholarships are the perfect way to earn extra funds for school because it’s basically free money. It’s important to look for and apply to scholarships year-round in order to avoid missing deadlines.

If you find yourself in a pinch, some organizations offer last-minute scholarships with deadlines just before the start of semesters — but keep a deadline calendar to help you stay on top of all the important scholarship due dates.

Find Odd Jobs

If you need extra cash quickly, pick up an odd job or two. Check sites like Craigslist for opportunities to help with one-time jobs like moving or yard work.

You could also put up flyers offering your lawn mowing, home repair, snow shoveling or other services.

Establish a Budget

Sometimes, by setting up a budget, you can find extra cash in your own bank account. To make a budget, just decide how much you will spend in a month on things like groceries, gas and non-necessities and then stick to that plan.

Obviously, it helps if you livefrugally. Only purchase things you really need and avoid the temptation to splurge. Shop at second-hand shops and cheaper grocery stores. Clip coupons and look for sales. Consider getting a cheaper apartment or a roommate or even move back home. Eating out less also creates additional savings over time.

Consider Loans

Oftentimes, college students need to take out loans to make it through college. To save money, look for ones with low interest rates and ones that are subsidized or need-based.

You can apply for loans from the federal government or private loans from your school, financial institutions or loan companies.

Find out what federal loans you’re eligible for by filling out the Free Application for Federal Student Aid (FAFSA). You may even get some grants, which you don’t have to pay back!

Some federal loans are subsidized, but others are not. The federal government will pay the interest on subsidized loans while you’re in school. And some federal and private loans can even be deferred until after you graduate.

Sell Your Old Stuff

If you’ve got stuff lying around that you don’t use anymore, you might as well turn it into cash by downsizing; use sites like eBay or Amazon, or get a spot at a local yard sale or flea market. And many book and record stores will buy your old media.

If you’re crafty, you could also make something cool or useful out of things you find lying around and sell it on Etsy, which is an online marketplace for homemade and vintage goods.

Try Crowdfunding

Crowdfunding is a growing trend among college students looking for new ways to pay for school. Crowdfunding involves setting up a campaign on a relevant website where you can ask for monetary contributions to a certain cause. Some crowdfunding sites can be used for any sort of campaign. Others are specifically geared toward education causes.

You can set up a campaign that’s purely donations based and depends on the generosity of family, friends and even strangers. Others require you to commit to paying contributors a percentage of your future earnings for a set period of time.

Become a Freelancer

If you have skills in a particular area, you could offer to use them for people on a freelance basis. Writing, web design, graphic design, computer repair and photography are all suitable areas for freelance work, but you can do almost anything that people are willing to pay for and that you can do well.

You could find freelancing opportunities among your friends and families or online on sites like Craigslist, Upwork, and Guru.

It’s no secret that most college students have trouble keeping up with their tuition payments and other education-related costs. The good news is that taking advantage of a multitude of unconventional and innovative ways to earn a little extra cash can go a long way toward making their dream of finishing college come true.

***

About the Author: Ethan Butler has worked as a personal finance consultant and has two kids in college himself. He now writes about a wide range of money matters when it comes to spending and saving.

Photo Credit: Nurse Carla

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Most of the booming businesses around the world today had a capital problem. It takes resilience, determination, and focus to explore and gain from any fundraising strategies. As an entrepreneur, you know there is money calling your name out there and you need to go for it — but first, it’s down to the basics on capital.

Is Capital All About Money?

Capital comprises both financial assets and the monetary value of assets. Such assets include cash and tangible property such as buildings, machinery, and other infrastructure, but exclude materials used in the production process. Capital is long term and continues to generate income through investment.

Other than being a factor in the production process, renting out such resources or selling them creates more wealth. You need to think out of the box to reach your market or create one. Sometimes your idea could require unique marketing strategies. Promoting your company with a reputable site will help you stay ahead on the market, as the Corpina website does for Nootropics.

Debt Capital

If you can raise collateral, you can acquire debt capital by borrowing money from financial institutions, family, friends, public sources such as federal loan programs, and insurance companies.

When considering borrowing, see whether you can find an agency with tailor-made solutions for your business. Some companies fund startups while others would find such businesses too risky. Ensure too that you negotiate for a comfortable loan repayment plan to avoid losing your investment or ruining your credit ratings if you default on payments.

Equity Capital

With equity capital, you acquire resources you don’t need to repay don’t owe; this includes your private investment if you have been saving to start your business or stock you sold to finance a business venture.

You could also solicit donations through crowdfunding initiatives.

Although crowd funding organizations comprise top fundraisers for nonprofits, they offer the opportunity for you to raise capital for your business or project on their platforms. With such, you can raise money for various aspects of your enterprise such as legal fees, equipment, start-up costs, marketing expenses and supplies.

Venture Capital

If you don’t want to borrow money, you can pool resources with others who are interested in your idea. You become partners, negotiate, and draw up an agreement on sharing of profits. These Angel investors are wealthy individuals willing to invest in viable startups.

Although the aid comes by your offering them equity on your part, the venture capitalists can mentor you to meet your goals. For example, they can insist on you acquiring business management tools to manage your employees’ hours and the payroll.

Remember that employee salaries, research, business administration, and development are part of the investment. They reflect your projections and are a basis for judging your business ethic and performance.

Such online business management tools will give frequent updates on your daily business activities of your employees, even those on telecommute arrangements and leave you time to concentrate on other ways of growing your business.

Consult Other Entrepreneurs

Starting and managing a business comes with hidden costs. Ask other successful investors to about multiple and affordable ways of raising capital. Inadequate capital caused by underestimating expenses will cause your business to fail.

Remember, you are the primary resource of your enterprise — so ensure you get adequate skills on all the aspects of your business.

***

About the Author: Jim Thompson is a super-connector who helps businesses find their audience online through outreach, partnerships, and networking. He is a professional writer who has been in the business for 12 years. He has hands on experience with cars, tech, and relationship advice, among other things. Because of how quickly he can turn articles around, he is able to take on multiple projects at once. His writing experience spans from SEO articles to technical guides and everything in between.

Photo Credit: stock photo

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If the IRS comes a-calling, demanding you fix the inconsistencies — hopefully without a full, nightmarish audit — then here’s what you need to do:

Stay Calm

Mistakes happen — even on taxes. Keep that in mind if the IRS flags your return. There’s no need to go ballistic on your preparer without the full details and an assessment of where things went wrong. This is especially important to remember if your tax preparer is not a certified accountant; if you had a friend or family member do your returns because they’re “good at math” and you wanted to save money, you only have yourself to blame.

Review Your Documents

Just as tax preparers are capable of making mistakes, so you are you. It’s possible the error doesn’t stem from an oversight of the preparer but, rather, from you.

“Countless times ‘mistakes’ result from the taxpayer not providing the tax preparer with adequate information,” says tax attorney Jon Biondo. “One of the most common mistakes is under-reporting income. Generally, this isn’t the preparer’s fault — it’s the taxpayer’s fault for not providing the 1099 they received. Preparers are humans, and mistakes happen, but both sides need to be reasonable in the amendment process.”

Contact the Preparer

If the mistake is big enough, it could draw the attention of tax inspectors. So to avoid an audit, contact your preparer as soon as you notice the mistake. They’ll be able to tell you how serious the mistake is and the best way to proceed.

“Often times, this means filing an amended tax return,” says tax attorney Sam Brotman. “File Form 1040X (Amended Tax Return) and any additional documents that illustrate or explain the mistake. If the mistake is big, it may require paying levies or filing a lawsuit. Be sure to refer to the statute of limitations for your particular situation. If you catch this error after a significant amount of time has passed, your options may become more limited.”

Amend the Return

If the problem stems from an error the accountant or tax preparer made, ask them to revisit the documents and figure out what went wrong. They have the most intimate relationship with these numbers at this point, and the error was likely their fault. As such, they also should cover the cost of the mistake.

“When a preparer makes a tax form mistake, the IRS or state tax authority will likely abate any penalty they impose on the taxpayer as long as the preparer owns up to it and amends the return,” says Biondo. “Amending the return should be a service the offending preparer does for free — and if the IRS does not abate, the preparer should pay the penalty.”

There is an exception to this rule, however.

“If the IRS charges interest,” Biondo adds, “it really isn’t the responsibility of the tax preparer, since the taxpayer had use of the money during the period interest accrued.”

Revisit Old Returns

If an error is found on your return, there’s a possibility that the same mistake was made on previous returns — especially if you’re using the same preparer. That’s not all bad news though. If you overpaid, there’s a three-year window from the return’s due date — or two years from the time the tax was paid — to file an amended return and claim a refund. If you underpaid, the IRS can’t collect additional tax if the original deadline or file date was three or more years ago. In all other cases, you could be liable for money owed.

Consider Litigation

Nobody likes going to court, but if your tax form mistake resulted in major penalties and your tax preparer won’t take responsibility for them, then you may want to consider filing suit. If you’re successful, you’ll generally be awarded with a judgment that allows you to recover penalties, fees you may have paid to other preparer’s to fix the original mistake. Depending on where you live, you may be entitled to interest charges too.

Photo Credit: Search Engine People Blog

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Of course, winter eventually arrives and the industrious ant finds himself well-fed and toasty-warm while the improvident grasshopper simply ends up as, well, toast.

The fable offers a terrific lesson for kids and adults on the importance of saving and hard work.

Why I’m Constantly Saving for Winter

Now, as an engineer, I occasionally have to endure business cycles where my employer has to layoff employees. It’s the nature of the industry and one that I have always taken very seriously, especially since I am the sole breadwinner for my family. Never mind that the threat of layoffs are even greater now that we’re in the midst of a very significant economic slowdown.

A layoff notice from my employer entitles me to five months of severance pay. Beyond that, I have to apply for unemployment benefits that are only a small fraction of our household expenses.

Don’t Panic! This Is Only a Drill

With that in mind, several years ago I decided to undergo a little layoff drill to try and ascertain exactly how much we’d have to cut back to make ends meet on unemployment benefits alone.

Luckily, the Honeybee and I have been using a spreadsheet to meticulously track our monthly expenses for 20 years, so we’ve also had an excellent handle on exactly where all our income is going.

Anyway, I asked her to propose what cuts she would make to our household budget in the event that I was laid off. Meanwhile, I independently made my proposed cuts.

You can see the results in the spreadsheet below. Now some of our expenses have changed since we originally did this — at the time, our average monthly expenses were $8100, which is slightly less than they are today in 2020 — but that doesn’t change the message.

As you can see, we disagree somewhat on the scope and magnitude of the cost cutting; she knocked down our budget by almost half, while I was a bit more draconian, slicing our spending plan by two-thirds.

Although we disagreed with our first pass on the size of the cuts, neither of us were able or willing to pare the budget to a degree that would allow us to live on unemployment benefits alone.

Back to the Ant and the Grasshopper

On the surface, it might seem like our family will be in a very tough predicament if I end up losing my job.

Fortunately, I’ve never forgotten about the ant and the grasshopper. As such, even though I am very well-paid, I’ve always tried to live well below my means and save up for that dreaded day when I may finally lose my job. As such, we try to always keep a cash cushion of at least $25,000 on hand.

For the sake of argument, let’s assume we agree to split the difference on our proposed budget cuts so that our monthly expenses top out at, say, $3500 per month. Add another $1250 per month to extend my health benefits through COBRA, and that brings our total monthly expenses to $4750. So in order to pay all the bills we would need to draw down our savings by $2750 per month, assuming unemployment benefits of $2000 per month. At that burn rate, we’d have at least a six-month cushion beyond the five months of severance pay I’d receive. That’s comforting to know.

The Moral of the Story

Don’t be a grasshopper and fool yourself into believing unemployment benefits will be sufficient to sustain you if you lose your job; for most households they won’t.

I can’t imagine the upheaval that our family would face if I was laid off and we didn’t have a healthy amount of cash saved up to get us through a financial “winter.”

Having a large savings cushion gives us the ability to postpone — if not outright avoid — the extremely tough decisions we’d have to make when living on unemployment benefits alone. And going through a layoff drill like this not only helps hone a plan of attack prior to facing a severe financial challenge like a layoff — it also shows how well you’re prepared should such a disaster strike right now.

Photo Credit: mickeymox

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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.

I’ve got another busy weekend ahead of me, so let’s get right to this week’s commentary …

An honest man is one who knows that he can’t consume more than he has produced.

— Ayn Rand

Credits and Debits

Debit: Did you see this? Approximately 4 of every 5 employees now use artificial intelligence (AI) tools at work. However, a fresh analysis of 164,000 workers across 1111 employers covering more than 440 million hours of work activity found that AI isn’t leading to lighter workloads – instead, it’s increasing their pace and complexity. In fact, the study found 94% of AI users spent more time on email, chat apps and business-management activities while, ironically, the amount of time workers spent on deep concentration activities needed for analysis, strategy or complex problem solving fell 9%. In other words: Solving perplexing tasks like this…

Debit: In other news, Honda Motor corporation announced that it’s fiscal year – which ends on 31 March – will finish almost $16 billion in the red. That will be Honda’s first annual loss since it began since its shares were first listed on the Tokyo Stock Exchange in 1957. As for the reason: Honda’s strategic manufacturing shift towards electrification has failed to translate to any appreciable sales. Then again, never say never…

Debit: On a related note, while most Americans have noticed the rising cost of gasoline, jet fuel prices have been flying under the radar – but that may be changing with global average jet fuel price rising 58% from the week before. The current price of jet fuel is now 80% higher than the average cost of jet fuel in 2025. As a result, we should expect higher airfares in the coming days and weeks as well. Oh… and on a related note…

Credit: Stop us if you’ve heard this before: According to macro analyst Jesse Columbo, according to “the cyclically adjusted price-to-earnings (CAPE) ratio, the US stock market is currently more overvalued than it was in 1929, just before the historic crash that led to the Great Depression. In addition, it is approaching levels last seen during the Dot-com bubble of the late 1990s.” And, apparently, it’s not just stock that are over-valued – at least according to some indicators.

h/t: Jesse Columbo substack

Debit:  By the way, Columbo also discussed another indicator, the stock market capitalization-to-GDP ratio, where he points out that “Warren Buffett once called this his favorite indicator. He also warned that when this ratio rises above 200, investors are ‘playing with fire.'” Uh huh. Today, the ratio is at an all-time high of 216; the historic average is 87. And now you know why Mr. Buffett currently holds the majority of his position in cash, rather than the stock market. Just remember that US dollars (USD) aren’t money; they’re debt. An IOU. In fact, you can think of USDs as a zero-duration US Treasury (UST) bond that pays 0% interest.

h/t: Jesse Columbo substack

Gary Larson – The Far Side

Credit: Meanwhile, macro analyst Daniel Oliver warned this week that, “the private credit market is sliding towards a full collapse: first Blue Owl, BlackRock, Blackstone. And now Cliffwater and Morgan Stanley are facing a credit run; and if private credit is worthless, so is private equity. The Fed will print money, but it can’t bail out these credit monstrosities: Everyone needs a house and a car, so the USDs printed in previous panics went to the locus of those crises. But nobody needs Class C office space anymore, so the printing will (only) exacerbate inflation. And war… will require even more debt.” Uh huh. Behold, Exhibits A B and C:

Source: Myrmikan Research

Credit: Not surprisingly, there is a global shift underway from a fiat-based monetary order based on debt-backed currencies. For many decades, USTs have been the world’s go-to safe haven – the asset you held when there were no other satisfying options. However, their status is rapidly eroding now in favor of commodities – and eventually an honest monetary system based on real money. Hey… we can all drink to the that!

Credit: By the way, for those think they’ve already missed the big move in precious metals, consider silver. Mr. Columbo notes that the silver-to-Dow ratio is up 255% so far, which “pales in comparison” to the average 1409% increase of the previous two secular silver bull markets from 1971-1980 and 2001-2011. So, by that measure, he says the current secular silver bull market is only 18% of the way there. It’s certainly a reasonable conclusion. And if you think that’s crazy, what do you call the time that Texas Rangers’ third baseman Brock Holt volunteered to work as an emergency pitcher?

Credit: As metals analyst David Jensen notes, “For 40 years, the global asset bubble that has been blown with central bank loose monetary policy has been predicated on low interest rates that are in turn dependent on suppressed gold and silver prices being fixed on highly leveraged exchanges globally. Increasing shortage of silver and gold globally over the past few years has pointed to the end of this digital metal price fixing system and much higher gold and silver prices.” Maybe so, but the corrupt metal exchanges aren’t going down without a fight…

Credit: So where is this runaway train going? Well… although markets are currently adjusting to an emerging monetary regime where central banks are now forced to continually print fiat currency to keep the global monetary system afloat, Mr. Jensen reminds us that conjuring USDs out of thin air “won’t suffice when precious metal is demanded but not available. Higher interest rates spell decline for the $270 trillion global bond and stock market asset bubble blown by central banks. Real estate too. And sharply higher rates spell sharp decline and an accelerating run into monetary safe havens silver and gold.”

Credit: Since 2022 – when America weaponized the USD for the first time by freezing Russia’s UST reserves – central banks have been buying gold at an unprecedented pace. Why gold? Because the yellow metal can’t be frozen, sanctioned, or printed at will – that is, it has no counterparty risk. As a result, gold now has a constant demand source that effectively absorbs selling pressure. It’s why gold hovering around $5000 isn’t a bubble. It’s also a sign of gold’s ascending monetary role in a world that no longer trusts the Fed to protect the purchasing power of the USD. And neither should you.

h/t: Zero Hedge

By the Numbers

Ever wonder what the most popular items sold every week on Amazon are? Well… here are the ten home products with the most sales last week (affiliate links):

10 Olany 20″ x 30″ bathroom rug

9 Utopia Bedding bed sheet set

8 Stanley 30 oz. Quencher H2.0 tumbler

7 Barossa Design plastic shower curtain liner

6 Amazon Basics velvet space saving clothes hangers

5 Upsimples 11″ x 14″ picture frame

4 Terro ant killer bait stations

3 Bedlore waterproof mattress protector

2 Owala FreeSip insulated stainless steel water bottle

1 CGK Unlimited comfy breathable & cooling bed sheets

Source: Amazon

The Question of the Week

Last Week’s Poll Results

• Within the last month   68%
• Within the last six months   15%
• Within the last year   9%
• More than a year ago   8%

More than 2500 Len Penzo dot Com readers responded to last week’s question and it turns out that 1 in 6 of you haven’t made a payment with a paper check in more than six months. I remember the days when I would go through checks in my check books in almost no time flat. Oh, how the times – and the way we pay are bills – continue to evolve!

If you have a question you’d like me to ask the readers here, send it to me at Len@LenPenzo.com and be sure to put “Question of the Week” in the subject line.

Useless News: Therapy Session

Ever since I was a child, I’ve always had a fear of someone under my bed at night. So I went to a psychiatrist and told him: “I’ve got problems. Every time I go to bed I think there’s somebody under it. I’m scared. I think I’m going crazy.”

“Just put yourself in my hands for one year,” said the psychiatrist. “Come talk to me three times a week and we should be able to get rid of those fears.”

“How much do you charge?”

“Three hundred dollars per visit,” replied the psychiatrist.

“I’ll sleep on it,” I said.

Six months later the psychiatrist met me on the street.

“Why didn’t you come to see me about those fears you were having?” he asked.

“Well … $300 a visit, three times a week for a year, is $46,800. A bartender cured me for $10. I was so happy to have saved all that money that I bought a new pickup truck.”

“Is that so?” the psychiatrist replied. Then, with a bit of an attitude, he said, “And how, may I ask, did that bartender cure you?”

“He told me to cut the legs off the bed. Ain’t nobody under there now.”

Moral of the story: It always pays to get a second opinion.

(h/t: Cowpoke)

Squirrel Cam

This little critter was ready for its close-up…

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Buy Me a Coffee? Thank You!

For the best reading experience, I present all of my fresh Black Coffee posts without ads. If you enjoyed this week’s column, buy me a coffee! (Dunkin’ Donuts; not Starbucks.) Thank you so much!

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More Useless News

Hey, while you’re here, please don’t forget to:

1. Subscribe to my weekly Len Penzo dot Com Newsletter!

2. Make sure you follow me on follow me on X. And last, but not least…

3. Please support this website by purchasing my book! Thank you!!!!

Letters, I Get Letters

Every week I feature the most interesting question or comment — assuming I get one, that is. And folks who are lucky enough to have the only question in the mailbag get their letter highlighted here whether it’s interesting or not! You can reach out to me at: Len@LenPenzo.com

This week GC disputed my claim that whirlpool tubs are for suckers:

I’m not sure what you people are talking about. Sure, you have to clean it a lot but, wow, you have to keep it clean anyway.

Thank you. I rest my case.

If you enjoyed this edition of Black Coffee and found it to be informative, please forward it to your friends and family. Thank you!

I’m Len Penzo and I approved this message.

Photo Credit: public domain

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Notes from a Teacher’s Diary (con’t)… 

One day while turning to the next page of her music, B asked, still watching the music, and still playing with the other hand, “Did you watch who shot JR?” (a big TV show story on Nov. 21, 1980). So where did that come from? From not concentrating on what she was doing! She also told me, sometime later, and I found it to be very touching, “We have a brand-new piano, from a going-out-of-business sale; my Daddy put his truck up for collateral.”

An adult friend, who came for lessons, soaked his hands in warm water before practicing because “It loosens up my fingers.” I’m sure it does!

One day I ate lunch in the studio, with garlic dressing on my salad, and later when one of the afternoon students arrived, she said, “It smells like Rudi’s in here” (an Italian restaurant in Lewisburg long before Pizza Hut arrived). Kids tell it like it is, don’t they!

I had a little class of four or five preschoolers for a while, and they came together from the day care center in Union. One day I asked them all, “What are notes?” T. offered: “It’s when you’re absent.” Another student from the day care group was J. I asked the whole group one day, “What do you see when you look at this? (and I pointed to Middle C, which was the first note we were learning). I expected somebody to say that it was “C”, but what J. said was, “I see my spirit.” Me: “What does it look like?” J: “All different colors.” Me: “Have you told your mother about this?” J: “No, I don’t want anybody to know that I see my spirit.” Kids’ spur-of-the-moment originality and imagination continually amaze me.

C. didn’t want to come into the studio on the day of her first lesson because it didn’t have any windows in front and she thought it would be dark and gloomy. But her Mom encouraged her to try it, and after the lesson C. said to me, “I liked my lesson and I liked your voice.” Kids are totally honest.

A young student’s response to playing C D E F G with the right hand, then trying it with the left hand: “I can’t play that one; I’m not left-handed.”

J., a talented boy of 12 or 13, asked me at his first lesson, “Can I pay you ahead of time? If I keep the money, I’ll spend it.” He paid for 10 lessons at a time, in advance. He must have been very careful with his money – mostly from babysitting for his sister – because he was able to buy a used piano which he paid for himself. When I met J., I immediately spotted a winner! I was very happy to play for his sister’s outdoor wedding, sometime later.

Another teenaged boy, T., who also took his piano study seriously, lost control of his vehicle and was killed. I was somewhat prepared when two of my severely handicapped students who I saw several times a week when I was the homebound teacher for Monroe County died, but it was a terrible shock to me when healthy and strong T. died suddenly at 17. I was honored to have known this wonderful boy.

To be continued…

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About the Author: RD Blakeslee (1931 – 2024) built his net worth by only investing in that which can be enjoyed during acquisition and throughout life, as opposed to papers in a drawer, like stocks and bonds. You can read more about him here.

Photos: Courtesy of the Blakeslee Family

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