Seriously. Is the USD going to keep dropping? (Im about to move all my USD to CAD)

[Myst]

Anyone know? I mean it looks like things are going to get worse before they get better, but I dont know much about economics.. I dont know if the US govt has planned to do anything about the dollar, change interest rates, whatever.

[GreyWolf]

Originally Posted by Myst

Anyone know? I mean it looks like things are going to get worse before they get better, but I dont know much about economics.. I dont know if the US govt has planned to do anything about the dollar, change interest rates, whatever.

Sure it's dropping Myst - and will drop more before any light shows.

The govt are doing what they think they should do - so far, this means printing more money. The effect of that is the dollar drops more, but they need more liquidity in the system to encourage a recovery.

Don't make much difference where we are - it's like sitting on the fence and benefitting both ways. Any US stuff gets immediately converted to Euros.

If you are in Canada - it's a good idea to kill any relevant balances in your dollar account and change to CDN, Euros or GBP

[TeenSluts]

Yes It Is.

[buzzy]

Before it gets better? lol. It isn't going to get better, it's going to drop untill it collapses then the USA will have to switch currency.

[VeriSexy]

Time to exchange asap

[GreyWolf]

Originally Posted by buzzy

Before it gets better? lol. It isn't going to get better, it's going to drop untill it collapses then the USA will have to switch currency.

Don't doubt 2008 is going to be one shit year for the dollar and can only hope no "external factors" come into play to make it even worse.

[TheSenator]

Originally Posted by GreyWolf

Don't doubt 2008 is going to be one shit year for the dollar and can only hope no "external factors" come into play to make it even worse.

http://www.nytimes.com/2007/11/04/wo... ea&ei=5087%0A

[WiredGuy]

I'm in need to convert to CDN but I won't take this much of a hit. I'm hoping by mid-2008 it'll improve back to normal levels but I doubt we'll be near par for quite a few months.
WG

[GreyWolf]

Originally Posted by WiredGuy

I'm in need to convert to CDN but I won't take this much of a hit. I'm hoping by mid-2008 it'll improve back to normal levels but I doubt we'll be near par for quite a few months.
WG

Seriously WG - the current background is more than a 6-9 month problem and doubt there will be any stabilizing for at least two years (and I got this nasty habit of being optimistic so take that with some doubt).

The main core problem is still hovering and more than just currency exchange - it would prob take 10 years to address that, assuming anyone will address it.

[pocketkangaroo]

I don't think it's a good time to be moving all your money to CAD. Sell high, buy low...not the other way around. Much stronger currency buys out there right now.

[BradM]

It will be 2-3 years before the dollar comes back up. Par... well you may be looking at 2009.

[Myst]

Originally Posted by WiredGuy

I'm in need to convert to CDN but I won't take this much of a hit. I'm hoping by mid-2008 it'll improve back to normal levels but I doubt we'll be near par for quite a few months.
WG

WG I used to think like you.. why change now when the rate is bad? The thing is if its going to get worse (like people are predicting) take advantage.

Say you have $200,000 right now in USD. You convert to CAD now at 0.93, you have $186,000CDN. In two months the rate is now 0.90. Convert that back to USD (if you want) and youve got $206,666 USD. Let the USD sit there like you are thinking right now, youre still going to have $200,000 in 2 months. I know you are one of the more successful people here.. and if you have a lot of US currency - youre not dealing with chump change..

Change it. Now. And when the new president takes office and everyone predicts the USD is going to go up.. do the opposite. Am I right or am I right?

[D]

Originally Posted by buzzy

Before it gets better? lol. It isn't going to get better, it's going to drop untill it collapses then the USA will have to switch currency.

err...

no.

[WiredGuy]

Originally Posted by Myst

WG I used to think like you.. why change now when the rate is bad? The thing is if its going to get worse (like people are predicting) take advantage.

Say you have $200,000 right now in USD. You convert to CAD now at 0.93, you have $186,000CDN. In two months the rate is now 0.90. Convert that back to USD (if you want) and youve got $206,666 USD. Let the USD sit there like you are thinking right now, youre still going to have $200,000 in 2 months. I know you are one of the more successful people here.. and if you have a lot of US currency - youre not dealing with chump change..

Change it. Now. And when the new president takes office and everyone predicts the USD is going to go up.. do the opposite. Am I right or am I right?

Actually I've prepaid 2007 taxes back in May (1.08) so I shouldn't need to pay anything next year in tax. Now the plan is to end the year with a loss (and since all my assets are in USD, that means I've lost 20% in assets already since January), then I should get a refund. That refund should cover my expenses until Spring of 2009. Hopefully by spring of 2009 the exchange rate will have stabilized back to par or better.

[WiredGuy]

Alternatively, I'm moving to the USA because no way am I converting all my cash to CDN at this rate.
WG

[SL|M!]

read a few articles saying by end of 2008 Cdn $ should be at 90cUS. Wonder if they are keeping their $ in the toilet to climb out of debt - thats one way to eliminate it.

[RawAlex]

There is a point where the other governments in the world won't tolerate it. You can expect to see some of the countries to move some reserve action into US dollars to try to prop it up, because it is getting a little too far out of hand. Don't be shocked if all major currencies drop their prime rates slightly to help the US out, it is to everyones benefit at this point.

0.90 is very likely, but that is probably where it will stop.

[woj]

So which of you wise guys are shorting the dollar? if you are so sure it will go down, short it with some nice leverage and you will make bank in no time...

put down 10k with 100 to 1 leverage and if the dollar drops only 10%, the 10k will magically turn into 100k...

[GreyWolf]

Originally Posted by RawAlex

There is a point where the other governments in the world won't tolerate it. You can expect to see some of the countries to move some reserve action into US dollars to try to prop it up, because it is getting a little too far out of hand. Don't be shocked if all major currencies drop their prime rates slightly to help the US out, it is to everyones benefit at this point.

Na Alex.. other govts are elected to handle their own currency and same with hedge fund managers and other investors, hence their withdrawal from the market. The debt is overwhelming already, but suppose if there was a firm plan in place to resolve it, there could be a least an effort to help. But dumping more loans into a non-peforming area with no plan in place is not a cure - it just makes the scenario worse.

Sure would be shocked if all major currencies dropped their rates You'd be lucky to find one country who will screw their own currency and devalue just because of one country. There are far more implications to that and cause others problems and it is not a solution to anything, just another plaster on the gaping wound.

The currency problem is a sympton of bigger issues and caused by these bigger issues. Only one set of people can start a remedy - it's not the responsibility/right of anyone else to interfere. Until these are addressed, currency is unlikely to improve.

Threads like this make me happy I convert every cheque I receive to Canadian on a weekly basis. If I was sitting on a shitload of US dollars right now I would want to hang myself.

[Rui]

Damm this "terror" threads...makes me wanna exchange everything and forget about wait for "better times" (which will surely take LONG LONG)...

[yys]

As they say "you are kind of late to the party". You should have been changing out your U.S. dollars as they came in. In the short term you should probably change out your money.The U.S. dollar will eventually recover against the Canadian dollar if only for the fact that the Canadian economy won't be able to tolerate being above par for that long.


But here's a bit of advice

Get yourself a financial advisor and stop basing important financial decisions on what someone told you on an adult webmaster message board. There are a plethora of know it all whiz kids on the internet.

How many of these people offering you advice do you think actually have any sophisticated financial background or training? I'd hazard a guess that most of them don't even have a first year economics course let alone more advanced education or hands on experience.

[teomaxxx]

Originally Posted by GreyWolf

Sure would be shocked if all major currencies dropped their rates You'd be lucky to find one country who will screw their own currency and devalue just because of one country. There are far more implications to that and cause others problems and it is not a solution to anything, just another plaster on the gaping wound.
.

They will cut in few ally countries, in particular England and ECB for sure
They wont allow to go under those parts of industry, which lives from export to the US. Mark my words.
Devaluing of currency, instead of former trade sanctions, is a new way how to compete in global economy.
But at the end, the results wont be great for majority...

[dready]

Originally Posted by SL|M!

read a few articles saying by end of 2008 Cdn $ should be at 90cUS. Wonder if they are keeping their $ in the toilet to climb out of debt - thats one way to eliminate it.

I've read this too. You could try to speculate a little in the near term. But if those analysts are right, you'd be better off shorting it.

[Iron Fist]

Originally Posted by yys

How many of these people offering you advice do you think actually have any sophisticated financial background or training? I'd hazard a guess that most of them don't even have a first year economics course let alone more advanced education or hands on experience.

Shhh.... we don't wanna let out the secret do we?

[yahoo-xxx-girls.com]

Perhaps the Canadian dollar is just getting stronger.

.

[tehHinjew]

Originally Posted by RawAlex

There is a point where the other governments in the world won't tolerate it. You can expect to see some of the countries to move some reserve action into US dollars to try to prop it up, because it is getting a little too far out of hand. Don't be shocked if all major currencies drop their prime rates slightly to help the US out, it is to everyones benefit at this point.

0.90 is very likely, but that is probably where it will stop.

you know whats funny tho? just a few days (maybe a week or so) the US Government was on Chinas balls for THEM to increase their currency value or else all shit will break loose

Karma is a BITCH

[GreyWolf]

Originally Posted by Balalsubturfyooj

Perhaps the Canadian dollar is just getting stronger.

Damn - that's it! These damned Canadians, Chinese, Brits, French and Germans are infiltrating and destroying the US economy - that's why we are $10trill in debt - they spent it