Category Archives: Money Matters

Paragraphs To Ponder

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The cost of living in New York City edition.

“As an environmental engineer, Michael Quinn is accustomed to making logical decisions. But two years ago, after getting divorced and selling the family house in White Plains, N.Y., he tried not to be so analytical.

‘I decided to listen to my heart and let that guide me,’ said Mr. Quinn, 56. Although he had never lived in the city, he took a chance on Manhattan and landed in a Murray Hill luxury building, paying $4,700 a month — which, after a year, rose to $4,850 — for a ‘flex’ one-bedroom with 850 square feet.”

The Final Four

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The Semi-Pro football playoffs begin today with two semi-finals. In light of this article, “The Best Teams That Money Could Buy” here are the matchups.

Game one, 5p EST. Walk of Champions versus Hail Impact.

Game two, 8:45p EST. Texas One Fund versus Montlake Futures.

There’s no clear favorite like in recent years. All I know is, the local team with the best name of the four, Montlake Futures, will be a tough out.

On School Closures

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The Olympia, Washington School District has a $13.9 million budget deficit. A big number for a smallish community.

The talk has turned to school closures. Parents, students, and other community members are upset and pushing back.

Here are two sample public statements, the first mindlessly conspiratorial; the second, thoughtful and cogent.

“The superintendent and the board members who voted yes to start the 90-day process do not care about the concerns our community has voiced. It is clear that there is a biased agenda happening behind closed doors since the only option they are willing to present is school closures.”

“Our students are not a classroom, they are not data points, they are not funding dollars—they are children. And behind each one of our children, there is a family, there is a story, and there are emotions.”

Lots of emotions.

Most of the protesters say they want to work with the district to find alternatives to closures. That spirit is nice, but I don’t see any counterproposals that result in a sustainable, balanced budget.

I suspect there’s only one alternative to increasing efficiencies through school closures. Increasing property taxes.

And no one is talking about that.

Corporate Skiing

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Private equity strikes again. How a corporate duopoly is ruining skiing. By Gordon Laforge in Slate.

“. . . accessible for whom? For a recreational skier of means in Brooklyn who can front a thousand bucks well before the start of the season, a pass does indeed open up new possibilities. The story is different, though, for a working dad in Denver who wants to take his kid up to Breckenridge for a day in late December to try out skiing. He will find that everything that is not a season pass is criminally expensive. Parking is $20; his lift ticket $251 (online—at the window it’ll be $279); basic rental gear $78; burger, fries, and a Gatorade for lunch $35; end-of-day Coors Light $8; and $418 for the kid’s rental, ticket, and group lesson (at least the lesson includes lunch). All in, an $800-plus day.”

Two Economies

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In the (dis)United States, despite a bevy of positive economic indicators, the President’s approval rating hovers around 38%. I thought it was all about the economy, but what do I know.

Inflation has moderated, but the cost of housing—whether buying a home or renting an apartment or home—is still too damn high. Positive economic data isn’t making people feel any better about their economic prospects.

In fact, there are two economies. One consisting of the “new aristocracy”, or top 10%, who have only grown more wealthy in recent years. And the other, the 90% doing everything they can to tread water. In actuality, a rising tide doesn’t lift all boats, just ten percent of them.

I can’t pontificate on economic matters in any more detail than that, because as a part of the new aristocracy, I’m out of touch with most people.

It would be unbecoming to be any more specific about my economic status, but suffice to say, as this picture illustrates so convincingly, the Biden economy has been very good to me.

Can George Santos Support Himself?

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The George Santos reporting has been excruciatingly superficial. The continuous platforming of a congenital liar; the should he or shouldn’t he be expelled; the can the R’s afford to possibly lose the seat; the Botox, Hermès, Sephora and OnlyFans.

Among many others, here are two questions no one seems to be asking:

How did he get 145,824 New Yorkers to vote for him in 2022? That’s 20,420 more than his opponent. Why did everyone find out about his mental condition after the election? Also, the 2022 New York Third Congressional election results were not an anomaly. Why are we still, despite access to unprecedented information about people, so incredibly susceptible to conmen and women? Maybe the avalanche of information works to their advantage? Clearly, we’re increasingly susceptible to congenital liars in politics, business/finance, religious life, fill in the blank.

The second thing you won’t hear a reporter ask is can GS support himself? Does he have any specialized work experience, knowledge, or skills that an employer would value enough to pay him a livable wage? Even setting aside his mental health issues and nightmare character,I highly doubt it. In that respect, he’s emblematic of many young men and women who are finding it exceedingly difficult to approximate their parents’ economic security and lifestyles.

By far, the easiest thing to do is to make fun of Mary Magdalene. Much harder is figuring out how to avoid being taken by GS-like charlatans over and over. Also much harder is helping the GS’s of the world live independent lives. Unless GS figures out how to exploit our celebrity culture in the spirit of his political mentor, the Former Guy, I expect him to end up in and out of prison, with the public paying his room and board.

And that’s the news from the edge of the Salish.

Postscript. Shit.

The Only AAPL Warning Sign That Really Freaks Me Out

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Apple’s shares slipped more than 3% in after-hours trading following last Thursday’s earnings call. Even worser, AAPL was also down Friday despite the fact that the broader market surged both Thursday and Friday.

When it comes to AAPL, I happily and knowingly break conventional personal finance wisdom that says never have more than 5% of your total invested assets in any individual stock.

Over the last fifteen years, I’ve learned to chuckle at the doubters. Chuckleheads all.

But what if I am right, until I am wrong? Maybe a little humility is in order? Maybe AAPL isn’t always going to make the personal tech of choice? If so, maybe I should pay attention to the “headwinds”.

The Wall Street Journal on Apple:

“. . . the stock already had been underperforming its big tech peers lately. Concerns were mounting over the new iPhone cycle and longer-term issues like the health of the China market and the company’s lucrative relationship with Google, which pays Apple billions of dollars every year to be the default search engine on the iPhone and other devices. That relationship is at the center of an antitrust trial against Google that has now lasted two months.

The case is a long way from resolution. China, however, is a more pressing issue. Apple’s revenue for its Greater China segment fell nearly 3% year over year compared with a 6% rise in last year’s fiscal fourth quarter. That brought China’s contribution to Apple’s total revenue to its lowest point in nearly three years. . . . Data from market research firm Counterpoint suggests the iPhone has lost momentum in China to a newly resurgent Huawei, though.”

Also, what about the anecdotal? A year ago the family had the nerve to suggest Spotify was better than Apple Music. Eventually, to save money by partnering with the GalPal, I caved and gave it a whirl. And you know what, don’t tell them, but they were right.

In related news, the sensor on the back of my Apple watch cracked. It still mostly works (no sleep data, heart rate, etc.), but I’m thinking of replacing it. And I’m leaning towards a Garmin Venu 3 or Garmin 265 because one charge lasts at least one week. How to make sense of the masses preference for Apple’s for-shits battery life? By acknowledging the company’s marketing genius.

But I digress. Back to the one, mother and father of all, AAPL warning signs. And I quote the recent CNBC headline that stopped me in my Apple track.

Jim Cramer lauds Apple’s ‘lifetime customer,’ says analysts are too negative on the company.

Harvard educated Jim Cramer is the single worst “stock guru” in the mainstream media. Yes, his television persona attracts eyeballs, but any primate throwing darts at a stock chart would outperform him.

John Oliver said it better than I ever could, “Cramer is the only person who could look you in the eye and say you are going to die tomorrow, and give you an immediate sense of calm knowing that you’re going to live for another 50 years.”

Hard to top that, but Ian Krietzberg says Cramer has been wrong so often “that Matthew Tuttle, the CEO and investment lead of Tuttle Capital Management, decided to create an ETF designed to short Jim Cramer.”

Tuttle for the win.

Maybe I should sell some AAPL and use the proceeds to buy an equal amount of SJIM.

The Upper Middle Class Is Coasting Downhill With The Wind At Their Back

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According to the Wall Street Journal’s interpretation of the Fed’s Survey of Consumer Finances.

The gist of it:

“Rather than being left behind as all the gains in the economy accrue to billionaires, they have in fact seen bigger wealth gains over the past three years than the top 10% of families. Indeed, the biggest wealth gains between 2019 and 2022 were among the approximately 13 million families in the 80th to 90th percentile of the income distribution. Their median wealth jumped 69% from 2019, adjusted for inflation, to $747,000 in 2022.”

They note, “. . . the increase in net worth for these families has far outpaced inflation.” 

They conclude:

“Rather than being swallowed by the 1%, the economy, according to these numbers, is creating a growing upper middle class. Many people got there by pursuing college degrees, steadily building retirement accounts and purchasing homes. For the most part, they became wealthy slowly, and were well-positioned when pandemic-era stimulus programs boosted asset values.”

As a result of inheriting some of their families’ growing assets, their children may very well end upper middle class too. Especially if they’re college educated.

The unreported on story of course, is the utter lack of social mobility for the other 80%, many of whom are not college graduates. Historically, the default mindset in the (dis)United States has been an assumption that each generation would enjoy a higher quality of life. Now, understandably, parents worry that their young adult children will not enjoy their level of economic security.