Loonie at all time high

Canada Immigration Forum (discussion group)


 
       
Subject: Loonie at all time high
  I don´t know about any other ex-pat Americans or U.S. residents, but this exchange rate is painful for those of us with funds still in USD$.

I´m looking at real estate in Canada and everyday it´s more and more expensive. And not just because real estate prices are going up, which they are anyway!

They say it´ll revert back to about $1.20 CDN per USD, which is where financial experts say it should be. I´m only wondering when. But despite the unusual exchange rate, the equivalent goods are still always priced 20-40% higher in Canada. This I still don´t understand. It´s as if there´s a built-in economic calculation that this price difference should always exsist.

But on the bright side, I imagine our Cannuck friends are enjoying the shopping on the other side.

[29-10-2007,12:29]
[**.53.225.148]
Richard
(in reply to: Loonie at all time high)
Like me, as told before I´m waiting for the time of 1.2 to bring my remaining funds from Canada.

Roy few days ago told that it´ll still take probably couple of years (as far as I can remember) to fix the 20-40% higher price problem in Canada. My point is what if by that time US $ gains again? Currently, the middle men are enjoying business greatly.

[29-10-2007,12:47]
[***.254.208.242]
Departed_Canadian
(in reply to: Loonie at all time high)
Yes, DC. But if you have funds in Canada (in CDN$) to bring to U.S., now is the time, with 1 CDN$ = 1.04 US$.
[29-10-2007,12:55]
[**.53.225.148]
Richard
(in reply to: Loonie at all time high)
Best time to be a trader (of goods) in Canada! I see that only computer memory (RAM) has dropped in price... The higher price in Canada is partly due to excise tax on imported goods (not all but most) compared to the US where such tax often is nill... Anyways, I got most of my savings frozen in US$ and will have to wait till loonie gets back to normal. The change in scenario is due to worsening situation in the US but not any inherent strength in Canadian economy which is pretty much stagnant. US is in deep this time, with corporate America shoveling money to wherever they want, looming large national debt, deficit economy and large consumer debt and great numbers of Americans near or already bancrupt (real estate is only one facet). Bush drove the US economy into ground as viciously as his predecessor Reagan done with the Soviet economy. What goes around is in fact coming around. I would like to sit back in cool Canada and just watch the US bite and eat some good load of dust! If anything, this scene tells us one could run even the mammoth of an economy into ground if one in the leadership position and pees on everything that system stood for for many decades, perhaps centuries. I have more patience than the Chinese and can wait till the damn Republicans are gone... and see what dems can do fix, if anything. Loonie will stay high for 2-3 years at least.
[29-10-2007,12:56]
[***.202.38.56]
Jack
(in reply to: Loonie at all time high)
I also think that at least the next president election situation will be more or less the same.
[29-10-2007,13:02]
[***.254.208.242]
Departed_Canadian
(in reply to: Loonie at all time high)
I am also hearing $1.20 but it won´t be that for a while. However, the shocker is that the US dollar has fallen against the Euro as well. The US needs to get their economic house in order. The Euro and Canadian dollar are staying equal in terms of comparative value.

As for pricing - Manufacturers -(particularly things like books and cars) set the MRP based on an assumption about the dollar value plus freight etc (blah, blah, blah). All hell is breaking loose at the moment because those US/CAN price differentials are inflated. The Finance Minister has read everyone the riot act but he has no jurisdiction over US manufacturers. I am starting to see some prices coming down. Walmart is making a big deal about their price adjustments.

I find it amusing that my US neighbours are crying the blues about the difference in the dollar as if it is a new phenomena. Canadians have been slaughtered for the past 10 years with exchange rates. Nobody seemed to mind then! It is always a happy thing when it is in your favour.

[29-10-2007,13:59]
[***.121.220.199]
sharon
(in reply to: Loonie at all time high)
Yes, very true about the U.S. needing to get its economic house in order. What´s killing the U.S. dollar is the huge deficit, fueled mostly by the Iraq war and giveaway low tax rates for the wealthy. Now with a war with Iran looming, it all gets even more questionable (and insane).

I remember driving across Canada (starting from Chicago) on the Trans-Canadian with my college buddy back in 70´s. When we complained about the dollar parity then, the gas station attendants loved to tell us of their satisfaction, that it´s their turn, and the tables have turned. Well, after all these years it´s happened again.

By the way, quite a fun trip up through North Dakota, then across the prarie provinces (which seem to last for days compared to crossing states), then finally Jasper and Lake Loiuse (gorgeous).

[29-10-2007,14:09]
[**.53.225.148]
Richard
(in reply to: Loonie at all time high)
and then there is the Chinese economy that may turn the world upside down if it should ever want to collect on its trade deficit.
[29-10-2007,15:15]
[***.121.220.199]
sharon
Loonie at all time high (in reply to: Loonie at all time high)
According to popular perception, Canadian and American economies have very strong relationship and works in tandem. How come weakening real-estate prices in US is NOT having an effect on the Canadian real-estate prices. On the contrary it seems to be firming. Why?
[29-10-2007,16:03]
[**.140.152.208]
BK
(in reply to: Loonie at all time high)
because our economy is strong, we have the lowest unemployment in 30 years, because we have 3 surplus budgets in a row.

The other reason is that we have not bought into the sub-prime mortgage game and there is not the same dynamics in the housing sector. The only affect this has in the Canadian market is that there are no new houses being built in the US - so we have fewer places to sell our lumber, and other commodities.

Will Canada be affected by the US slow down - yes but analysts are saying not nearly as much as one would expect.

Alberta real estate is starting to cool off - it had to. BC will likely be strong through 2010. Saskatchewan is stupid - not sure why. Ontario will slow down because there is so many jobs that are manufacturing related. If your work is iffy, you are not out buying a newer bigger house.


[29-10-2007,16:20]
[***.121.220.199]
sharon
(in reply to: Loonie at all time high)
Go to www.mls.ca and search for house prices and you will die for the cheap BIG houses on the east coast if you sail.

Anything in Toronto starts at $300,000.00 and it is just that nothing to write home about.

Problem is in this country there are plenty of places that few wish to reside Richard. In certain other places the demand drives the prices through the roof.

Roy
www.cvimmigration.com

[29-10-2007,16:25]
[**.55.219.19]
Roy