NFIB Survey, Consumer Credit, Coins (silver ones), VA Loans, and what is Drizzle?
Economic Data this Week
The National Federation of Independent Business – NFIB - released its optimism index.
It went from 98.8 to 98.2, right where it was expected to be. It’s low, but still above the 52-year average of 98.0.
Here is the breakdown:
32% reported being unable to fill open positions.
27% reported labor quality as being their single most important problem.
21% increased prices in October.
30% plan to increase prices in the next 3 months.
Consumer Credit – yep, that’s you and me.
The share of credit balances that are 90 or more days late is at its highest level since early 2011, rising to 12.4% in the third quarter. Ugh.
Yeah, this doesn’t look good.
Look through your couch cushions…
A quarter minted before 1964 is worth… $8.
A dime of similar vintage is worth $3.50.
That’s because they were minted with silver.
It may be time to visit your boomer parents and ask about that jar of coins you have made fun of for the last 30 years.
And speaking of coins…
“If you see a penny, pick it up and all day long you’ll have good luck.”
The last penny was minted last week. Yep, the last one. It costs 3.7 cents to make a penny, so it’s a cost-saving thing.
For years, I have heard people complain about pennies. Well, this past week, our local Stater Bros. market was asking customers to bring in their pennies.
I have a feeling it’s going to be missed.
VA Home Loans
On Veterans Day, I saw a blurb for VA loans, an excellent benefit for veterans. So, as a public service message…
Zero Down, Zero PMI: Veterans can buy a home with no down payment and no private mortgage insurance. Huge.
Better Rates, Easier Terms: Because the federal government backs the loan, banks can offer lower interest rates and more flexible credit standards than conventional loans.
Use It Again: Once you’ve earned your VA eligibility, it’s yours for life. You can use it again for another home purchase or refinance.
Refinance Made Simple: The VA’s “Interest Rate Reduction Refinance Loan” makes it easy to drop your rate without a mountain of paperwork or fees.
This program helps Vets build stability and wealth through homeownership.
Get the word out.
Drizzle
Have an idea for a board game? Talk to Erich Arcement and his daughter, Persy.
In 2020, the family was stuck at home by a certain virus (we’ll be hearing a lot about that for decades to come), and 8-year old Persy couldn’t go out to get ice cream.
You roll 8 colored dice that tell you how you can decorate ice cream cones with toppings.
The game is sold in about 20 mom and pop stores across New Jersey and New York.
Persy won the Young Innovator of the Year this past week at the Chicago Toy & Game Fair.
It’s also an opportunity to pitch the game to publishers and find a distributor such as Walmart or Amazon.
For her dad, it’s an opportunity to recoup the $50,000 he invested to design and make 3000 copies.
They enlisted a graphic designer and paid China’s Panda Games, to manufacture the games. It was $20,000 for 3000 games. Then they had to market it.
Persy had been involved every step of the way, going on sales calls with her dad and marketing the game at fairs and events, and even cold calling stores.
While there have been moments of stress and pressure, Persy says:
“My favorite part about this entire process has been that I’m doing it with my dad.”
And for a dad to hear that, dear reader, may just be worth $50,000.
Bank47 12-Month CD for 4.15% - Shameless Plug
Some of you may know that I am one of the founders of Bank47. The bank is offering a CD rate of 4.15% for 12 months. Reach out to me and I’ll get you set up – minimum deposit is $10,000. It’s easy peasy, lemony squeezy, folks!
We also have a 6-month CD for 4.25%.
FDIC insured to $250,000, an equal housing lender.
For many weeks, I have been scratching my head about what kind of economy we are in. This past week, I was at two major malls in our area: Victoria Gardens on Tuesday and the Ontario Mills on Saturday. Both days, the malls and surrounding restaurants were busy, and people weren’t just hanging out, they were shopping. (BTW, the Santa at Victoria Gardens is very good!) On the other end of the spectrum, credit card delinquency is rising, but business owners are unable to fill positions. And many people seem to have a second gig.
So, I’m going to do a reader poll. All you have to do is reply back with one of three answers: Worse, Better or Same. The question is:
Do you think you will be worse off, better off, or the same, six months from now?
And now for the quote of the week:
Perseverance is not a long race. It is many short races, one after the other.
Walter Elliot – prospector, soldier, lawyer, and clergyman.
