14 July 2018
List-Serve Story: This came from a daily report in construction regarding labor. “2 more subcontractor employees lost to….Lost one because he was told by his foreman he could not drink his Pepsi in the building. Employee said he would just quit then and did. YOU GOTTA BE KIDDING ME!” (Prof Note: You have to stand for something in life. Not certain the freedom of drinking a Pepsi in a building is the right issue for which to stand, but kudos for believing in something.)
Question: According to CNBC, what are 5 money mistakes that can destroy a marriage?
New York’s Flatiron building set to be landmark for flexible office revolution – Pg. 1
– The $20bn office space start-up WeWork is vying with Blackstone-backed rival to take over the lease of Manhattan’s Flatiron Building, potentially turning the century-old skyscraper into the flexible office sector’s most recognizable property
– The potential takeover of a landmark such as the Flatiron, completed in 1902 with a distinctive triangular shape, has attracted high-level attention from potential tenants, including Blackstone, which bought a majority stake in Office Group last year
– The stylish building is one of Manhattan’s best-known skyscrapers and has lent its name to the surrounding Flatiron District. But its wedge layout also gives rise to challenges for tenants, including an unusually small footprint, ….
– Class A office in the area carry asking rents of $77/sf/yr
– Much of the growth in the flexible office sector has been propelled by WeWork…
JPMorgan and Citi shares slip on fears over higher US rates – Pg. 10
– …concerns that the Federal Reserve’s interest rate rises will squeeze profit margins as the industry is forced to pay more for deposits
– …WellsFargo, whose revenues and profits declined as it grapples with compliance problems
– Wells, which is struggling to shake off the impact of a series of scandals, dropped as much as 4.3%
Rising debt leaves Ems at epicenter of worries as conditions tighten – Pg. 13
– The amount of debt in the world increased by almost $25tn n the year to the end of March and by more than $8tn in the first quarter of 2018 alone….
– Global debts also grew in relation to GDP, to more than 318%, the first such increase since the third quarter of 2016…
– The size and the pace of change raise fresh concerns over the dangers posed to a global financial system already struggling to deal with rising US interest rates, a stronger dollar and widening risk premiums for borrowers, alongside the worry that world growth is slowing
– For emerging markets, the dangers may be particularly acute. The ultra-loose monetary policies pursued by the US Federal Reserve and others in the decade since the global financial crisis have pumped money into emerging assets on a gigantic scale
– …world’s real debt problem is in mature economies and that emerging economies are much better prepared than previously to deal with their relatively small debt loads. EM government debt, particularly, seems manageable at the equivalent of 48% of GDP on average, compared with 110% in mature markets
– …many EMs have improved their public finances and found other means of funding than relying on international lenders
Answer: (1) Hiding money (Prof Note: While I do very little counseling and what I do is for the cost of my meal(s) I always recommend both partners be actively involved and understand where all the money goes.); (2) Hiding debt (Prof Note: I have heard several horror stories of older couples where the man passed and the woman was left with debt for which she was unaware. Thomas Jefferson did this to his daughter Martha! Some founding “father”!); (3) Overspending (Prof Note: I know I keep saying it but a sunset is free. Retail therapy is dangerous.); (4) Underspending (Prof Note: There needs to be a balance. When I was younger I worried about not spending enough. Now, it is sort of like eating, I am comfortable not eating the full amount on my plate. I am comfortable not spending the money and/or declining an expensive restaurant due to cost. Personal note, I am generally not a fan of expensive restaurants. Why make others wealthy. Come to the cottage, we will throw some first-of-season corn on the grill with local crab cakes and have a feast. The fire pit is ready and I know just when to hope for the green flash); (5) Financial abuse