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Posts: 2928
Posted: Thu Oct 09, 2008 3:51 pm
Zipperfish Zipperfish: Look, I know didly about economics, but if Canada is doing so great, why is our loony plummeting in comparison to teh US dollar? Shouldn't it be going up? A few reasons. First, it should never have gotten as high as it did. It was too overvalued. Now that overvaluation is unwinding. Second, Canada benefited from the global liquidity/commodity trade. That trade is unwinding. Hedge funds are getting liquidating or are liquidating and selling commodities. Third, investors are scrambling into what is perceived as the safest investment in the world, US Treasury bills, and are selling everything else, including Canadian assets. Canada has a very strong banking system, much stronger than the US, because Canadian banks are better capitalized, i.e. they have less debt. When housing crashes in Canada - and it will - Canadian banks will take big write-offs. However, it is highly unlikely their viability will be threatened, unlike in the US and in Europe.
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Posted: Thu Oct 09, 2008 3:55 pm
Toro,I remember you saying not too long ago the bubble was going to burst.  Your predictions were pretty good from a few years ago,if it was that long.
Last edited by ziggy on Thu Oct 09, 2008 3:56 pm, edited 1 time in total.
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Posts: 876
Posted: Thu Oct 09, 2008 3:56 pm
in out small town houses bought a year ago for 9000 sold for 100 000 this year? you dont think banks will lose their a$$ soon
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Posts: 2928
Posted: Thu Oct 09, 2008 3:56 pm
ziggy ziggy: Toro,I remember you saying not too long ago the bubble was going to burst.  Your predictions were pretty good from a few years ago,if it was that long. You remember well, Ziggy...
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Posts: 21665
Posted: Thu Oct 09, 2008 4:03 pm
Toro Toro: Third, investors are scrambling into what is perceived as the safest investment in the world, US Treasury bills, and are selling everything else, including Canadian assets.
. Why would people run out and buy American money, if they're the ones who created this whole mess, and they're busy printing $7000 billion in new money to pay for it? thanks
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Posts: 2928
Posted: Thu Oct 09, 2008 4:22 pm
Zipperfish Zipperfish: Toro Toro: Third, investors are scrambling into what is perceived as the safest investment in the world, US Treasury bills, and are selling everything else, including Canadian assets.
. Why would people run out and buy American money, if they're the ones who created this whole mess, and they're busy printing $7000 billion in new money to pay for it? thanks Because the Europeans have even bigger problems. Investors think American treasuries are the safest instruments in the world because the US is the biggest, deepest and the most dynamic economy in the developing world.
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Posts: 806
Posted: Thu Oct 09, 2008 5:00 pm
Our dollar has weaked because all we have to export [of any consequence] is raw materials, and a few manufactured goods to the USA..like vehicles they no longer want or can afford. Raw materials prices are down because there is way less demand for them in a shrinking world economy.
'Experts' predict a major slump in the US dollar...but against what ?
The Euro is severely under siege. Individual European countries bailing out their own banks without The Gods Of Brussels running the show undermines the very concept of a Euro.
Other currencies, like the Chinese Yuan [renminbi] is pegged to the US Dollar by China....because they own so much in US T-bills, and because they need their biggest customer to stay afloat.
Japan's Yen is in no position to grow against the US buck OR the Euro...they face serious problems themselves. Their internal interest rate is effectively zero.
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Posts: 11362
Posted: Thu Oct 09, 2008 5:21 pm
Yup, Oil and every other Commodity is plummeting in Price(except Gold). The $CDN wasn't over valued, Oil was.
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Posted: Thu Oct 09, 2008 5:26 pm
I doubt sugar is dropping. Not with the shortage they had in the states, they opened up the border to Canada and Mexico, that doesn't happen very often. Corn is probably pretty high as well.
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Posts: 7684
Posted: Thu Oct 09, 2008 5:26 pm
sandorski sandorski: Yup, Oil and every other Commodity is plummeting in Price(except Gold). The $CDN wasn't over valued, Oil was. Gold is supposed to rocket in the future. I think I going to opt for the stock options. 
Last edited by saturn_656 on Thu Oct 09, 2008 5:38 pm, edited 1 time in total.
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Posts: 2928
Posted: Thu Oct 09, 2008 5:34 pm
Tricks Tricks: I doubt sugar is dropping. Not with the shortage they had in the states, they opened up the border to Canada and Mexico, that doesn't happen very often. Corn is probably pretty high as well. Sugar is dropping, trust me. I got margined out of all my sugar futures contracts! 
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Posts: 4247
Posted: Thu Oct 09, 2008 7:04 pm
Funny how this isn't front page news. Here we are in the middle of a economic frenzy and do you think the media would do their part to help calm peoples fears which would be the responsible thing to do? Hell no. They're more concerned with writing a bigger and better "dooms day" scenario so they can make a little more money and get their readership up. Makes me sick.
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Posts: 11362
Posted: Thu Oct 09, 2008 7:30 pm
saturn_656 saturn_656: sandorski sandorski: Yup, Oil and every other Commodity is plummeting in Price(except Gold). The $CDN wasn't over valued, Oil was. Gold is supposed to rocket in the future. I think I going to opt for the stock options.  It might, but we'll see.
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Posts: 42160
Posted: Thu Oct 09, 2008 7:40 pm
Thank Christ for precious metal funds.
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ridenrain
CKA Uber
Posts: 22594
Posted: Thu Oct 09, 2008 7:48 pm
dino_bobba_renno dino_bobba_renno: Funny how this isn't front page news. Here we are in the middle of a economic frenzy and do you think the media would do their part to help calm peoples fears which would be the responsible thing to do? Hell no. They're more concerned with writing a bigger and better "dooms day" scenario so they can make a little more money and get their readership up. Makes me sick. Doing exactly what everybody else does isn't the way to make money. By the time it's in the news, it's already too late.
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