The Last Bass Outpost
Main Forums => The Outpost Cafe => Topic started by: Max Soren on March 04, 2008, 04:59:39 PM
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I know this topic has been discussed before, but this seems to be something that gets worse every day. Right now the exchange rate is 1.00 EUR=1.52 USD. Some feel that will be 1.55 by the end of the month. Then what about next month? Should the U.S. just go ahead and get rid of the dollar and adopt the Mexican peso?
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:'( My wallet is hurty!
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:'( My wallet is hurty!
Better your wallet than your ass! ;)
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It's not all negative. Remember it does make US goods more attractive to Europeans. Also helps US tourism. Doesn't help the average consumer, though.
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How about the Amero?
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I believe we have to finish the internationalist superhighway version of 35 so Mexico, the US and Canada can be one people and goods free-for-all before we can adopt the Amero.
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It's not all negative. Remember it does make US goods more attractive to Europeans. Also helps US tourism. Doesn't help the average consumer, though.
It obviously makes traveling to Europe very difficult now. That's my perspective on it. Some people seem to not be too concerned about that and assume that everyone who travels to Europe is rich; but that isn't always the case. Also, there are other reasons for going to Europe than going on a vacation, such as trying to help out a friend there the way I've been trying to do for the past few years. When you hand over $1,000 at a currency exchange and don't get back much more than 600 Euros, that's a major problem for someone such as myself. You can do quite a bit with $1,000 in the U.S. itself. You could even buy a new Gibson T-Bird Studio bass. But take that money outside of the U.S. and it immediately shrinks.
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I believe we have to finish the internationalist superhighway version of 35 so Mexico, the US and Canada can be one people and goods free-for-all before we can adopt the Amero.
Very true. Should be a fun drive though, traveling along a freeway that is 4 football fields wide.
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And eventually it will hurt BMW, Porsche and Mercedes car sales in the US though most auto makers have hedged their currency risk well, but all hedging contracts run out sooner or later.
It's been great for me as regards buying basses of course. When the Euro was introduced initally it dropped quickly and only bought you around 82 US cents at its undervalued all time low, now it seems on the verge of buying almost twice as much US currency which can't be right either. Bass purchases aside, it needs to swing back.
Uwe
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Ah, the fabulous downsides. The problem with the Euro vs Dollar balance shifting too far is that it start wreaking havoc on the European nations that have the same problems the US has. I heard an economist a few weeks back outlining how nations within the EU that have uncontrolled budget problems will become unstable within the EU. Which weakens the flow of goods and labor within the EU, which destabilizes the global currency markets further, which makes oil more expensive, which makes agricultural and lumber products more expensive, and so on...
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Today it is 1 EUR=1.57USD. This is unbelievable. If there are any economic geniuses out there, your help would be appreciated.
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Not that the War is the problem, but we are spending how many billion a month on a war we can't afford????
Whos going to pay for that???
The housing Market is tanking, Bears & Sterns was $144.00 not long ago a share and was just bought for $2.00 a share.
If we go down we are taking a lot of other nations with us.
Want to buy the Ohio Turnpike?
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Ah, the fabulous downsides. The problem with the Euro vs Dollar balance shifting too far is that it start wreaking havoc on the European nations that have the same problems the US has. I heard an economist a few weeks back outlining how nations within the EU that have uncontrolled budget problems will become unstable within the EU. Which weakens the flow of goods and labor within the EU, which destabilizes the global currency markets further, which makes oil more expensive, which makes agricultural and lumber products more expensive, and so on...
I saw a report about how the owners of the Sears Tower sold it to the Japanses for some huge amount, several years later the Japanse sold it for almost half the price they paid for it, the original owners bought it back, made a killing on the deal.
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I'm not sure what the cost is of the war in Iraq. I've seen several estimates. But certainly this has to be a major factor in hurting the American economy. The U.S. may find itself in a situation similar to that of Carthage in the Second Punic War. Although many factors were involved, one factor was the Carthaginian legislature's reluctance to financially assist Hannibal. It's conceivable this could have helped him in his attempt to subdue Rome. Although cutting corners financially was understandable, the end result was the annihilation of Carthage in the Third Punic War.
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Once we invade Iran then things will be much better
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Don't worry, our great-grandchildren will be paying for it.
And look at the bright side. Poor Heather Mills was awarded £24.3 million today. If she had settled immediately for that amount, it would only be about $35 million. Thanks to the sinking dollar, it's now worth $50 million! ;D
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All this reminds me of a club owner we knew back in the '70s. Tommy Olsen owned The Night Gallery outside Waukegan, IL. He owned the property and the business. Every few years, he'd get tired of running the business, so he'd sell it, and lease his property to the new bar owner. Inevitably, the bar would fail, and Tommy would reclaim the bar business in default.
My employers just picked up Bear-Sterns this week.
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Ahh, the mortgage crisis. About 6 or 7 years ago, I had friends who were waiting tables quit to get into mortgage brokering. Such easy money! Seeing as the rates were soooo low, all you had to do was peddle some refinancing package, with much lower rates, and people were lining up. And all those condos that were being built, you just signed up for one, or 30, and when they were finished you sold them. Who could lose? Yeah, the rates were variable, but you would make your money right away, and the rates were so low. And yes, there were was a speculator that literally bought 30 condos in FLA on spec. When people figured out there was no real demand for all of them, this character did some quick math and walked on the down payment rather than assume the mortgage payments. Take that Bear-Stearns. Take that, American tax payer (hint - not the poor or the very rich).
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The other day (just before the Bear-Stearns meltdown) someone sent me a hilarious and all-to-true slideshow presentation about the mortgage crisis. It's a powerpoint (.pps) file but I found an online version here: http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1
(Caution: language)
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Pretty good depiction.