Loonie Hits 47-Year High; Update - Broke $1.10 today!

[return to the red]

Originally Posted by MoneyGuy

It's never been that high, has it? Source? Never mind. Found this.

Loonie at highest level on record

I'm encouraged to read that the automanufacturers are actually going to make a step to recognize the cost differences between here and the U.S.

[kevman]

Originally Posted by FlamesAddiction

I was going to say, if the Canadian retailers start losing business to the U.S., then that is their own fault.

Actually it's their distributors fault (in the case when there is a middle man)

Take the bicycle industry for instance...right now you can buy parts from pricepoint.com for cheaper than the local shops pay our local distributors. Please tell me, how is this the retailers fault?

The auto industry is a different story...

[metallicat]

A book store here in Edmonton has started to sell their books by the US price on the jacket. They are taking a hit since they bought the book from Canadian suppliers, but they are hoping increased sales help them even out the losses.

[GreenTeaFrapp]

Originally Posted by MoneyGuy

Chrysler Canada Inc. said it plans to boost incentives on its vehicles beginning Thursday in a bid to address the difference in prices between Canada and the U.S. that appears to be harming sales of all auto makers in Canada. Chrysler will increase incentives for cash buyers as well as for those who lease or finance their purchases, spokesman Stuart Schorr said Wednesday.
Mr. Schorr said the move addresses concerns among Canadians that they are paying higher prices than Americans. "A lot of consumers have been misled by comparisons they've made themselves or read about," Mr. Schorr said.
Chrysler is, for example, more than doubling the cash-back incentive on one version of its 2008 Dodge Ram pickup, providing $6,250 (Canadian) in rebates. The price for the 4 by 4, quad-cab version of the Ram will fall to $34,530 in Canada once the new incentives are applied, compared with $34,810 (U.S.) in the United States. Monthly lease payments on that model of the Ram will drop by about $65 (Canadian).

It's nice that he's comparing the price after incentives in Canada vs the MSRP in the US. What the Americans are paying for that vehicle, according to Edmunds.com, is about $5K less then the new Canadian price.

[GreenTeaFrapp]

Originally Posted by chris lindberg

What would/could the government do?

Outlaw brokerage fees.

[MoneyGuy]

Originally Posted by V

Is anyone here buying US$ as an investment? I'm just curious, because I've heard of some people doing it, and I just don't see if the ROI is there to justify it. Any opinions?

I'm buying greenbacks, not as an investment but because the missus and I travel lots in the States and I want to hedge against a decline in the loonie. Getting 4.75%. I'm going to put some more in now.

[FlamesAddiction]

Originally Posted by kevman

Actually it's their distributors fault (in the case when there is a middle man)

Take the bicycle industry for instance...right now you can buy parts from pricepoint.com for cheaper than the local shops pay our local distributors. Please tell me, how is this the retailers fault?

The auto industry is a different story...

The distributors know what the retailers are asking for their products and are going to set their prices relative to that. Unless the retailers adjust their prices first, then why would the distributors?

[scotty2hotty]

Wal-mart just announced they are going to begin selling all of their books and mags at US prices. (Hope this wasn't posted already).

I, for one, hope people really think before they go and throw money at wal-mart. I have my own reasons why I will NEVER shop at wal-mart, and I will also never try to push these reasons on anyone else. I just hope people consider paying the extra 2-3 bucks and purchasing from a canadian store before falling for this publicity stunt. This whole dollar thing will even out, don't snub canadian retailers just yet.

[ken0042]

While I'm not anti- Walmart; I do share the notion.

Keeping in mind retailers buy products months ahead of time- not everybody can do what Walmart does. For them; this is a "loss leader." They can sell a book at near or below cost, because odds are you will also buy something else there. The smaller book stores cannot afford to do the same thing.

[GreenTeaFrapp]

Originally Posted by ken0042

Keeping in mind retailers buy products months ahead of time- not everybody can do what Walmart does. For them; this is a "loss leader." They can sell a book at near or below cost, because odds are you will also buy something else there. The smaller book stores cannot afford to do the same thing.

The smaller book stores no longer compete based upon price. They have to differentiate themselves by something other then price because the Indigo/Chapters/Coles chain is too dominant in the Canadian marketplace.

[GreenTeaFrapp]

Originally Posted by scotty2hotty

I, for one, hope people really think before they go and throw money at wal-mart. I have my own reasons why I will NEVER shop at wal-mart, and I will also never try to push these reasons on anyone else. I just hope people consider paying the extra 2-3 bucks and purchasing from a canadian store before falling for this publicity stunt. This whole dollar thing will even out, don't snub canadian retailers just yet.

I'd snub Canadian mega chain retailers because they gouge Canadian consumers every chance they get. When Wal-Mart came to Canada it forced a lot of them to start lowering their prices. The same thing will happen now. Wal-Mart will adjust their prices based upon the currency appreciation and they'll follow but only because they have to.

Look at Indigo/Chapters. Go into their stores and the prices are a lot higher then they are online. They're gouging customers because they don't have to worry about an Amazon store being nearby with fair pricing.

[Nehkara]

http://www.cbc.ca/money/story/2007/1...ollarrise.html

Canadian Dollar hits 1.0718 this morning!

[ken0042]

Originally Posted by V

Is anyone here buying US$ as an investment? I'm just curious, because I've heard of some people doing it, and I just don't see if the ROI is there to justify it. Any opinions?

A couple of things to keep in mind:

- The US dollar has to rebound in enough time for you to make money. For example if the US dollar ends up going up 20% in the next 4 years, then there are better ways to make your money.

- There is zero guarantee on your money. Theoretically the US dollar could end up going the way of the peso.

- Exchange rate difference. Banks charge about 2% each time you exchange money, so on my previous 20% example, turn in into 4% per year return.

[getbak]

As expected, Wal-Mart's announcement was just the beginning.

Now, Sears has announced that it is lowering prices due to the strength of the Canadian dollar: http://www.canada.com/nationalpost/f...e3&k=41897



I've also made an observation recently, has everyone else noticed that you're getting a lot more American coins in your change since the Loonie climbed above parity? It used to be pretty common to get American pennies in your change, but nickels, dimes, and quarters were much more rare. That doesn't seem to be the case any more.

[Cowperson]

Originally Posted by ken0042

A couple of things to keep in mind:

- The US dollar has to rebound in enough time for you to make money. For example if the US dollar ends up going up 20% in the next 4 years, then there are better ways to make your money.

I would think you would obviously purchase something that is priced in USA dollars, hoping you get the double scoop of an appreciation in the asset as well as appreciation in the currency.

Interesting note: The MCSI World Index is up 11.4% year to date but is negative 10.6% in Canadian dollars. The American Standard & Poors 500 Index is up 6.4% in 2007, but is negative 14.6% in Canadian dollars.

Canada is killing everything.

When and if that reverses, you'll make a lot of money in assets denominated in other currencies. The question is, obviously, "when?"

Cowperson

[LockedOut]

Big jump for the dollar at the end of the day. Up 1.92 cents to $1.0704 to end the week. Direction of the dollar is pretty much following the direction of the price of oil. Oil finished at $95.93, up $2.44 for the day.

[return to the red]

dollar trading above $1.08 for anybody interested

[Bertuzzied]

Originally Posted by return to the red

dollar trading above $1.08 for anybody interested

I've been on amazon.com all morning. hehe

[Burninator]

Originally Posted by Kobatuzzied

I've been on amazon.com all morning. hehe

Do you save any money by buying from there after shipping and boarder costs?

[Bertuzzied]

Originally Posted by Burninator

Do you save any money by buying from there after shipping and boarder costs?

yup for sure. they only ship dvds and books to canada though even they have a whole range of electronics and computers on the site.

I dont know if they send it through their canadian depot somehow but i have never been charged with customs with them. Their shipping costs are quite reasonable.