It’s time to sit back, relax and enjoy a little joe …
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.
Well… another busy week is behind us. So with that in mind, let’s get this party started!
He who is quick to borrow is slow to pay.
– German proverb
There are three kinds of people: the haves, the have-nots, and the have-not-paid-for-what-they-haves.
– Earl Wilson
Credits and Debits
Credit: Did you see this? A new survey was released last week that reveals the average US household was in debt to the tune of $152,653 at the end of June 2025. While the headline was supposed to convey shock, if one considers mortgage debt, then this total seems more than reasonable. On the other hand, for household that don’t hold a mortgage, that figure is indeed a bit problematic. Behold, Exhibit A …
Debit: By the way, the same survey found that two out of every five American households admit that debt was a source of conflict in their homes. Hopefully, those households will be able to sort our their troubles before it breaks them up because divorce lawyer bills will only make their debt mountain higher.
Debit: On the other side of the ledger, just 1 in 4 consumers making more than $80,000 annually have enough savings to cover a year’s worth of living expenses. Even worse, more than half (56%) wouldn’t last six months. Sheesh. You’d expect high earners to be better prepared – especially in this softening job market – but that’s not always the case. Frankly, we’re not willing to speculate on where to put the blame for this sorry statistic because we simply don’t have enough clues to make an informed assessment. Unlike here …
h/t: @spillthememes
Debit: It’s possible that Americans’ savings status may grow more tenuous if you consider that US stores are now reportedly shuttering their doors at an annualized pace that surpasses even the rapid business closings during the pandemic years. During the first six months of this year, 5822 store closures were recorded. Probably by someone like Miss Jones …
Credit: Needless to say, in many places across America, there are an increasing number of abandoned buildings dotting the landscape. That’s not surprising when you learn that the total amount of retail space that has been permanently shuttered in 2025 has reached a staggering 120 million square feet. We suspect the primary reason for this is not a sharp decline in economic activity. In fact, it can be explained in a single word: Amazon. For many people, allowing Amazon to become the behemoth it is today has been a rotten deal, but they’ll learn to like it. Eventually …
Debit: This is just more evidence why, between Amazon and the work-from-home movement, commercial real estate (CRE) is going to be a tough sell over the coming years. Then again, it’s not just brick-and-mortar companies that are in for a rough ride marketwise – Amazon is working hard to put its online competition out of business too. Anyway … speaking of rough rides:
Credit: On a related note, dying shopping malls are seeing a resurgence by replacing abandoned anchor stores with a variety of different businesses, from restaurants like The Cheesecake Factory, to large retailers like Dick’s Sporting Goods, entertainment options like Dave & Buster’s, hotels and even more experiential endeavors such as bowling alleys, laser tag, churches and apartments. No, really. Let’s just hope there are consumers still around with enough disposable income left over to spend …
Credit: In other news, of the estimated 2 million metric tons of tomatoes Mexico will export in 2025, 90% will end up in American grocery stores. In response to a new 17% tariff, Mexico has decided to lower the legal minimum price its farmers can sell their exported tomatoes in order to protect its domestic producers. Imagine that.
Debit: Meanwhile, Friday was the 54th anniversary of Richard Nixon’s infamous decree that “temporarily” broke the gold anchor with the US dollar (USD). And it’s no coincidence that America’s manufacturing base and fiscal health has been declining ever since. In fact, the federal government’s debt situation has become so onerous that the US National Debt is now growing at the staggering rate of more than $1 trillion every 100 days. Admittedly, the ever-expanding debt load is getting to be more than a bit tiresome. Then again, it appears as if we’re clearly not the only ones who are getting fed up with the same ol’ same ol’…
Credit: Speaking of the National Debt, The Silver Academy observes that although the United States was once the world’s premier creditor nation, it “now borrows just to pay the interest on previous borrowings. At what point does a nation resemble a cornered gambler, drawing cash advances from one credit card to pay off another, while the casino waits for its pound of flesh?” And on a related note …
h/t: @alifarhat79
Credit: We’ll end this week with an observation from macro analyst Brandon Smith, who notes that “It’s impossible to keep the USD globally dominant when everything is working against (it) right now, and there’s a lot of people who question if it’s even worth saving. But, the USD is all we have until a tangible safety net can be established.” Of course, it’s becoming increasingly obvious to almost everyone now that the tangible safety net is physical gold held in your possession. In fact, the yellow metal will be the bridge that carries us across the debt abyss to the next monetary system – whatever, and whenever, that may be.
By the Numbers
In 2025, the average 5-year-old car will keep just 54% of its original value, highlighting how some vehicles depreciate once they hit the used market. A new study analyzed the depreciation of 40 popular electric vehicles (EVs) and internal combustion engine (ICE) car models between 2020 and 2025. Here are the ten cars with the highest depreciation percentage over a maximum of five years. (EVs in bold red):
46.5% Nissan Ariya
48.1% 2022 F-150 Lightning
48.3% Audi Q8
48.7% Mercedes EQE sedan
49.4% Porsche Taycan
49.9% Toyota Crown
51.2% Volvo XC40 Recharge
51.9% Nissan Leaf
52.5% Nissan Juke
57.8% BMW i3
Source: NexusMedia
The Question of the Week
How big is the deductible on your auto insurance?
- $0 to $499
- $500 to $999
- $1000 to $1499
- $1500 or higher
Last Week’s Poll Result
How many dental cavities have you had?
- 4 to 6: 30%
- 1 to 3: 23%
- 10 or more: 24%
- 7 to 9: 14%
- None! 9%
More than 1900 Len Penzo dot Com readers answered last week’s poll question and it turns out that 1 in 3 of you have had no more than three cavities during your lifetime – and 1 in 11 have had none. You can put me in that last group. Yes, it’s true, I’ve never had a cavity despite being old as dirt! However, I’m absolutely convinced my lack of cavities has more to do with mouth chemistry than how well I take care of my teeth. I only say that because I know people who diligently floss and brush after every meal and still get cavities. Do you agree?
If you have a question you’d like to see featured here, please send it to me at Len@LenPenzo.com and be sure to put “Question of the Week” in the subject line.
Useless News: The Pillsbury Doughboy (1950 – 2025)
The Pillsbury Doughboy died yesterday in Minneapolis of a yeast infection and traumatic complications from repeated pokes in the belly. He was 71.
Doughboy was buried in a lightly greased coffin. Dozens of celebrities turned out to pay their respects, including Mrs. Butterworth, Hungry Jack, Duncan Hines, the California Raisins, Betty Crocker, the Hostess Twinkies, and Captai