Inedible to Delicious
5-21-25
Opening Comment
My last note was “Failing Forward,” and outlined stories of people who overcame obstacles and failure. We are defined by how we overcome adversity. The feedback was as strong as any piece I have written recently. The most opened links were the family who had their property tax bill jump from $15k to $91k after a renovation and the video of the day where the baseball prospect proved the college coaches wrong through hard work.
Markets
Deficits/Moody’s
JPM Home Insurance Study
Americans’ Summer Vacation Plans
New Study on Best Way To Practice
Tavis and Taylor in My Hood
Denver 90% off Sale on Office
College Towns Boom to Bust
Top European Countries to Relocate
Video of the Day-Powerful Commencement Speech
I have often written about the importance of public speaking. If you can present a good story with a powerful message and infuse humor, you win. Listen to this speech of a man who learned great lessons from his father, who dropped out of school in 3rd grade. My last note was Failing Forward, and this video reinforces my message. Please take the 10 minutes to listen to this fun speech. The speaker shared many great life lessons and sayings, but my favorite was “Ego is the anesthesia that deadens the pain of stupidity. Pride is the burden of a foolish person.”
Inedible to Delicious
About eighteen months ago, a new restaurant called Fiolina opened in Boca. Renowned chef Fabio Trabocci (two Michelin Star restaurant in DC-Fiola) was at the helm. Sadly, Fiolina was an absolute dumpster fire and could never see a positive review, let alone a Michelin Star. I went one time to the Boca eatery and believed it was doomed.
I knew the manager, and he asked, “Eric, what do you think?” I looked him in the eye and said, “Do you want the truth?” He nodded. I said, “There is a zero percent chance this will be open in a few months. The food was awful and not inexpensive. We ordered three pastas to split for the table, and we did not finish any of them. You are in trouble when the best thing on the menu is your garlic bread. Also, the room is so loud that I have a migraine.” His mouth was agape at my crushing review.
I was right, and Fiolina, closed a few months later. However, chaos creates opportunity, and Motek (Eastern Mediterranean) from Miami opened in place of Fiolina. It is now the toughest ticket in town, and securing a reservation is akin to winning Powerball. When it was Fiolina, you could shoot a shotgun in the dining room and not hit a person. We got into Motek at 5:15 pm on Friday night. Don’t laugh at the time, the place was packed. It was the only reservation we could get weeks in advance. I have been to Motek in various Miami locations at least 10 times and have written about it in the past.
I will not go into all the details, given that I have already reviewed Motek, but it is a solid option in Boca. The bar is relatively low in this town, but Motek does not disappoint. The service is snappy, and I might argue too fast. We ordered, and within 4 minutes, appetizers were served, and they came out before the water. We were in and out of there in less than an hour, as they want to turn tables in a hurry. The food is not cheap, but not offensively priced, and it’s fresh and flavorful. The pita served for the table is my second favorite bread of any restaurant (NYC’s restaurant Junoon’s naan is my favorite). The issue for me is the combination of hot pita, hummus, and tzatziki means I overdose on carbs. Also of note, Motek is a welcome change from the countless Italian restaurants and steakhouses in town and the seasoning and flavoring make it unique.
The room is nicely appointed, but a bit loud, given that the acoustics are not ideal. They have ample outside seating and pack in the crowds every night. Is it the greatest food ever? No, but I am yet to have a bad meal there and plan on going back again soon.
Food 7.9
Service 8.3
Ambiance 7.8
Wine List-Limited Selection/Full bar
Quick Bites
The big news was Moody’s downgrade of the US credit rating after the close on Friday. Stocks sold off initially but recovered. Treasury yields rose on the news with the 30-year +12bps to 5.02% and the 10-year +10bps to 4.55%. Wednesday, the bond weakness continued pushing the yields out to 5.08% for the 30 year and 4.59% on 10s. For perspective, in early April, the 10-year was at 3.86% and is +73bps since. The continued bond weakness weighed on stocks pushing the S&P -1.6%, Nasdaq-1.41% and Russell-2.6% on the day. These bond rates are getting increasingly concerning given the $37 trillion debt load and maturities. Mortgage rates are back up to above 7%, given the recent rate moves (chart below). The resilience of US stock markets has been shocking to me. Despite the sloppy tariff policies, US debt downgrades, long-term bond yields rising, massive deficits, weak consumer confidence data, lower S&P earnings guidance, and geopolitical risks… we are now only -.5% on the S&P YTD. Based on the backdrop, I thought we should be decently lower. Bitcoin hit an all time high of $109k on Wednesday, is is +16% in May.
I have written extensively about the topic of debt, deficits, and entitlement reform. The idiots in DC refuse to cut spending and continue to run massive deficits. Credit rating agencies are hardly informative or cutting edge, but the theme is consistent: The US deficits are out of control and spending must be cut. Bridgewater Associates founder and billionaire Ray Dalio warned Monday that Moody’s downgrade of the U.S. sovereign credit rating understates the threat to U.S. Treasurys, saying the credit agency isn’t taking into account the risk of the federal government simply printing money to pay its debt. “They don’t include the greater risk that the countries in debt will print money to pay their debts thus causing holders of the bonds to suffer losses from the decreased value of the money they’re getting (rather than from the decreased quantity of money they’re getting),” the Bridgewater founder said.
The JPM Private Bank came out with a study on home insurance, which is incredibly in-depth and includes great charts. The cost of insuring a home is on the rise. Persistent home insurance inflation is becoming an acute challenge for home buyers and homeowners in the United States today. A key reason: Insurers are moving rapidly to price in greater climate risk as they incorporate sustained underwriting losses from climate-related events in the recent past—and take future climate risks more seriously. Insurers’ expectations of potential future losses are an important piece of the story, but present losses are already stacking up. “Insured losses from natural disasters in the U.S. now routinely approach $100 billion a year, compared to $4.6 billion in 2000,” according to a recent Senate Budget Committee report. Insurers, using the extensive information they collect about climate risks and homes, have increasingly chosen not to renew policies, depending on the precise location, because the climate risk has made it no longer profitable to operate there. Remember, my sponsor Lang Insurance (866-964-4434) has helped dozens of my readers with their insurance needs across all 50 states. I switched to Lang, and he saved me 25% with the same carrier. One reader saved $75k a year and thanked me profusely for the introduction. Given the absurdity of property and casualty insurance rates, you must have someone to guide you. Kevin Lang is worth a call in these challenging times on the insurance front. Tell him the RR sent you.
Good WSJ article, “Europe Is Out. Road Trips Are In. Welcome to the Scaled-Back Vacation.” The theme is that economic concerns are forcing consumers to dial back extravagant holidays for shorter vacations. About 12% of Americans said they changed their vacation plans because of tariffs, according to a survey of more than 2,000 travelers by market-research firm Future Partners conducted in mid-April. Beginning in the past few months, more travelers are using points because they feel nervous about the economy, Delta CEO Ed Bastian said. “People are getting ready to go for the summer and say, ‘Maybe we should use some of our points versus dollars,’” he said.
I love to learn new things and have been fascinated by the findings in Malcom Gladwell’s book, “Outliers,” which suggest it takes 10,000 hours of “deliberate practice” to become an expert. I saw Gladwell recently at a bar eating by himself and walked up to him to let him know I love his work. He was very nice. This Johns Hopkins study is throwing me for a loop. It suggests that repeating the same steps or tasks may not only slow your improvement, in some cases, your skills can get worse. According to research from Johns Hopkins, "What we found is if you practice a slightly modified version of a task you want to master, you actually learn more and faster than if you just keep practicing the exact same thing multiple times in a row." The article shows you the steps to follow to efficiently learn a new skill.
Tariffs
Trump faces a trillion-dollar tariff disappointment
Revenues from border levies will be lower than he expects
Target worker exposes MASSIVE tariff price hike for popular items
Prices should go up. I am in complete disagreement with Trump on this matter. Why the hell should retailers eat the tariffs imposed by Trump? If I owned a retailer, I would pass 100% of my cost increase on to my customers. However, Home Depot claims the company will not raise prices due to tariffs.
Politics
Former President Biden has ‘aggressive’ prostate cancer that has spread to his bones
Not a good diagnosis. I am perplexed how this president, who is seen by the best doctors in the world received an “excellent” bill of health just months prior. The Biden Administration covered up his mental decline. Did they also cover up his failing health? I believe they did. I am not alone in my view, as doctors suggest it is “inconceivable” that this cancer went undetected. This doctor is convinced Biden has had the cancer for some time. Was this a cover up or did the best doctors in the world miss a relatively easy diagnosis for years? Remember in 2022 when President Biden told the world he had cancer? Was it one of his thousands of gaffes, or was he telling the truth? Now, one of Biden’s representatives is telling us the last PSA (blood test for Prostate cancer) for Biden was 2014.
Key House committee advances Trump agenda bill after appeasing conservatives
It does not seem to me that the Republicans are cutting enough given the massive fiscal issues we face as a country. I would like to see the deficits to GDP of less than 3% (has been running 5-6%). Entitlement reform is needed and Trump just made it clear that Medicaid is not to be touched. We have a major spending problem, and no one wants to make tough choices to get it under control. We are in a crisis, and I want the response to be appropriate, yet no party is ever willing to cut deep enough. Seems Johnson and the Republicans have agreed on a $40k SALT cap.
The 'Big, Beautiful Bill' Will "Massively" Increase Near-Term Deficits, Add $5 Trillion In Debt
I lack the infrastructure to spend the time to go through all these proposals. I am adamantly against any bills that do not reduce deficits and this article suggests we are moving in the wrong direction. I am told that this scoring does not factor revenue from tariffs, which will improve these numbers.
Trump Unveils $175 Billion Plan for ‘Golden Dome’ Missile Defense System
Donald Trump's Approval Rating Surges In Polls
After a big post-Liberation Day dip, Trump is gaining traction.
Is Every Top Democrat Running for President?
Voters could be forgiven for thinking so. The party’s up-and-comers, heavy on tough talk and light on new ideas, are being remarkably open about wanting to run despite how early it is. If Democrats want to succeed, I strongly suggest a move to the center. I do not feel Pritzker, Newsom, Harris, or Walz are the answer.
Navy's former second-in-command convicted in historic corruption case
Senate unanimously passes bill eliminating federal taxes on tips
Needs to pass the House. I do worry about cheating and want the tips to be narrowed. Hearing stories of contractors charging less and will be asking for their pay in tips, for example. Love the concept of no tax on tips for waiters, bartenders, valet…
Trump administration formally accepts gift jet from Qatar
I think this just looks bad even if it is not illegal. This is going to come back and haunt the Republicans in the mid-terms.
Middle East
I am adamantly opposed to any deal that gives Iran leeway to do anything of substance. The supreme leader hates America, Israel, Jews and the West. Listen to this recent speech and hear the crowd chanting, “Death to America.” Check out this story: Israel Preparing Possible Preemptive Attack on Iranian Nuclear Facilities. I would far rather see this outcome than letting Iran progress further on nukes.
Israel, Hamas present varying hostage deal proposals, IDF expands Gaza strikes
Hamas leader likely killed after Israeli airstrike targets hideout below Gaza hospital
Hamas terrorists hide in schools, hospitals, and civilian apartments.
Netanyahu Says Israel to Take Over All Gaza, Start Aid Flows
Vance Abruptly Cancels Israel Visit As IDF Expands Gaza Operations
No Jew should ever consider this clown for Mayor. Mamdani is running second behind Cuomo, and he has 18% of the vote according to polls.
Israel and Antisemitism Loom Large as Issues in the N.Y.C. Mayor’s Race
Andrew Cuomo has attacked opponents, including Jewish ones, as antisemitic, while other candidates believe the issue is being used as a weapon to win Jewish voters.
Florida Porsche dealership owner resigns after alleged antisemitic text
VULGAR text messages from the Porsche dealership near my house.
Other Headlines
Moody’s Cuts Deposit Ratings At Major Banks After Downgrading US
Top economist El-Erian says tariffs have put the era of U.S. exceptionalism ‘on pause’
I would agree that markets are too complacent.
Citi CEO: Something 'deeper' is going on in financial markets right now
In my opinion, Jane Fraser has not been an impressive CEO, and the stock has underperformed since her appointment to the top job. However, I feel she articulately expresses an interesting view in this short note.
China Dumps $18,900,000,000 in Treasuries as US Government Faces Major Dilemma
The data also shows that the UK has overtaken China and is now the second-biggest foreign holder of USTs in the world. Japan remains the biggest holder of USTs in the world, currently holding $1.13 trillion, down from $1.16 trillion a year prior.
China’s retail sales disappoint as stimulus fails to spur demand; industrial output defies tariffs
Jensen Huang says U.S. chip restrictions have cut Nvidia’s China market share nearly in half
Australia's Unrealized Gains Tax Will Be A Lesson In Economic Suicide
I am ADAMANTLY opposed to unrealized capital gains taxes. I cannot wait to see how this idiocy plays out.
UnitedHealth falls after report it secretly paid nursing homes to reduce hospital transfers
This company has been a disaster for a while and the stock price shows it.
Canada Goose shares +20% as company beats estimates, pulls full-year guidance
Target cuts sales outlook as retailer blames tariff uncertainty and backlash to DEI
New report shows the staggering AI cash surge — and the rise of the ‘zombiecorn’
D-Wave Quantum shares soar 20% as company releases latest computing system
JPMorgan Chase Says AI Could Cut Headcount By 10% in Some Divisions
Anthropic issues ironic warning to job applicants—don’t use AI when applying to our roles
Waymo says it reached 10 million robotaxi trips, doubling in five months
What are the ramifications over the next 5-10 years for millions of drivers who earn a living in that industry (Uber, Lyft, truck, Amazon, UPS, FedEx…).
$100-an-hr subway guards are holding doors open for fare beaters, sleeping on job
Man accused of slashing trio outside NYC bar is son of late-night TV royalty
Wild video shows Vegas cops fatally shoot gym member attempting to carry out a mass killing
Bomb kills one near California fertility clinic; FBI calls it 'terrorism'
‘Over 300 youth’ descend upon New Jersey mall, sparking massive brawl planned through TikTok
Dan Bongino gives his verdict on Jeffrey Epstein’s cause of death after reviewing FBI files
I will make a bold statement. I do not believe Epstein willingly killed himself. If indeed it was suicide, I believe his hulking cellmate (former cop convicted of murdering four men) gave him an ultimatum.
Wealthy shoppers are splashing the cash on jewelry if it’s the right brand
Student loan borrowers brace for wage garnishment: ‘Money is tight when you’re a teacher’
I continue to write about my concerns of the expensive four-year degrees for many students. I just do not believe it is worth it in a growing number of cases. Too many students are graduating with massive debt and cannot get high-paying jobs. The weight of the debt crushes them over time.
Chat GPT usage is prevalent among students and now teachers are using it.
Five small habits sports psychologists wish everyone did
Failed auction of $70M bronze bust stuns Sotheby’s bidders into silence
Never-before-seen footage of UFO dubbed The Cigar soaring over US border
I know we are not alone. Trump, release ALL info on aliens, UFOs, UAPs and all related subjects.
UFO striking fighter jet is among swarm of mystery objects spotted near US military sites in Arizona
Chess grandmaster Magnus Carlsen is forced into a draw in a showdown against ‘the world’
World #1, Carlsen, played against 143,000 people who voted on moves.
Health
FDA greenlights first blood test to help diagnose Alzheimer’s disease in the US
Avocados!
A promising genetic treatment tailor-made for a baby born with a rare disorder
Very interesting article about treating a baby with a rare genetic disorder using gene-editing therapy. I hope this is more prevalent in coming years.
Forget 10K steps a day — here’s how many you need to lower your cancer risk
The study found that people who walked 7,000 steps a day had an 11% lower cancer risk compared to those logging just 5,000. At 9,000 steps, the risk dropped further to 16% — but beyond that, the benefits leveled off.
Harvard-trained pediatrician: The No. 1 ‘overlooked’ superfood more parents need to feed their kids
Ice cream and thousands of foods with emulsifiers may upset your gut health
Real Estate
Travis Kelce and Taylor Swift rented in my neighborhood in Boca. I have known about it for a while, but did not want to write about it to protect their privacy. Well, an article exposed the couple, and it is outlined here. They live a few blocks from me in Royal Palm and have been spotted dozens of times out and about. I am told Kelce trains in the off-season in Boca, which is why they rented here. Hedge fund manager Ed Mulé’ sold a Palm beach mansion for $48.5mm after buying the property in 2019 for $15mm.
I spoke with an investor who told me he wrote off 100% of his investments in a host of office buildings in various cities. This article outlines two Denver skyscrapers that sold for 90% below their estimated value from 2019. The plan is to convert them to apartments, a challenging task in many situations given ceiling heights, windows and floorplans/elevators.
This is an interesting WSJ article, “America’s College Towns Go From Boom to Bust.” Many state universities are losing more students every year, failing the local economies they once fostered. For generations, colleges around the U.S. fueled local economies, creating jobs and bringing in students to shop and spend. Growing student enrollment fattened school budgets and freed universities from having to worry about inefficiencies or cutting costs. Among metropolitan areas especially reliant on higher education, three-quarters of them suffered weaker economic growth between 2011 and 2023 than the U.S. as a whole, according to an analysis by Mark Muro and Shriya Methkupally at Brookings Metro, a nonprofit think tank in Washington, D.C. College towns are now threatened by federal-funding cuts from the Trump administration, resulting in hiring freezes and layoffs at Ivy League and state schools alike. Administration efforts to cancel student visas might hurt state college budgets, since most international students pay higher, out-of-state tuition. Adding to the issue is declining birth rates which is resulting in fewer high school graduates. The cost of college has become out of control for many students who are considering vocational programs as an alternative.
Good CNBC article about the top countries for Americans who want to move abroad. The author has helped hundreds of families move to Europe. Her top picks are Spain, Portugal, France, the Netherlands, and Albania.
© 2025 The Rosen Report LLC. All rights reserved. Does not constitute investment, financial, legal, or tax advice. Consult with your lawyers and professional financial advisers. Rosen Report™ #787 ©Copyright 2025 Written By Eric Rosen.
