Canadian vs. U.S. Dollar

[pdchristensen]

Originally Posted by dustman_stx

If you'll look back at my original post, you'll notice that I did include a disclaimer about a more expensive axle- it hadn't been mentioned before what type of axle was being discussed. If you'll go back and read my post, I also didn't include an extra wheel and tire- you may have mentioned this originally and I didn't catch it. I stand by my original statement that replacing 2 drums, hubs, bearings and some brakes at a cost of $3000 is outrageous. Maybe some other work was required that wasn't originally mentioned(or maye I missed something)??? Also, if you are talking $2500 Canadian, I think we are on 2 different pages anyway as far as cost goes.

lol - last I looked $2,500 Canadian is cheaper than U.S. Canadian dollar currently trading above value of U.S.

[bakken]

Originally Posted by dustman_stx

Also, if you are talking $2500 Canadian, I think we are on 2 different pages anyway as far as cost goes.

Indeed, with the Canadian dollar now worth more than the US$, Canadians should be able to buy things just as cheap as in the US.

[pdchristensen]

Originally Posted by bakken

Indeed, with the Canadian dollar now worth more than the US$, Canadians should be able to buy things just as cheap as in the US.

Almost I have been buying U.S. dollars in anticipation that the Canadian Dollar should eventually tank back below par, however the banks charge a bit of a premium to exchange funds so currently I am buying at equal exchange despite the Canadian "Loonie" strength over the U.S. greenback.

[bakken]

Originally Posted by pdchristensen

Almost I have been buying U.S. dollars in anticipation that the Canadian Dollar should eventually tank back below par, however the banks charge a bit of a premium to exchange funds so currently I am buying at equal exchange despite the Canadian "Loonie" strength over the U.S. greenback.

I am not so sure that the C$ will fall below the US$ anytime soon.
With The Fed printing $40 BILLION per month to buy mortgage paper from the banks, and the federal debt already at a level that can never be paid back, I have to wonder if the greenback will not simply continue to depreciate.

[pdchristensen]

Originally Posted by bakken

I am not so sure that the C$ will fall below the US$ anytime soon.
With The Fed printing $40 BILLION per month to buy mortgage paper from the banks, and the federal debt already at a level that can never be paid back, I have to wonder if the greenback will not simply continue to depreciate.

Good point Bakken,,,but us Canadian's should not be to smug about avoiding the sub prime mortgage meltdown in the U.S. Canadians are increasingly falling into the trap of "high debt" including jumping into a hot real estate market and mortgages they can barely afford during this period of low interest rates. There are signs that the bubble may be about to burst. (ie: in Vancouver the average detached home selling price used to hover just under the 2 million dollar mark) Now those same homes are listing around the 1.5 million dollar mark. Any bump in the current interest rates or change in the Canadian economy impacting employment will have a significant impact on the housing market. It may be only a matter of time before it has a major melt down like the U.S.

[bakken]

Originally Posted by pdchristensen

Good point Bakken,,,but us Canadian's should not be to smug about avoiding the sub prime mortgage meltdown in the U.S. Canadians are increasingly falling into the trap of "high debt" including jumping into a hot real estate market and mortgages they can barely afford during this period of low interest rates. There are signs that the bubble may be about to burst. (ie: in Vancouver the average detached home selling price used to hover just under the 2 million dollar mark) Now those same homes are listing around the 1.5 million dollar mark. Any bump in the current interest rates or change in the Canadian economy impacting employment will have a significant impact on the housing market. It may be only a matter of time before it has a major melt down like the U.S.

Agreed that some markets in Canada were over-heated, but we never had anything approaching the outright fraud that the US banks commited. The other side of the coin is that the employment situation remains strong in Canada, and there is no reason to expect that to change. I will agree that people are exposing themselves to increasing interest rates, but that will only come gradually, and people will have time to adjust. The debtor nations like the US simply cannot afford to let rates rise.
The added bonus is that with very slow economic growth in the US, things like campers should remain very competitively priced, and that has finally been reflected in the prices our dealers are asking. And since I bought my new truck two years ago, I have seen the prices for them drop as well. It is a great time to be a consumer, if one can afford it!

[pdchristensen]

Originally Posted by bakken

The other side of the coin is that the employment situation remains strong in Canada, and there is no reason to expect that to change.

Your comment is valid, with the exception that there are a lot of variables in Canada maintaining strong employment so there is reason to consider it could change in the not so distant future.

[Herk7769]

I know this thread is in the Off Topic area, but it is quickly getting "Political" and "Nation Centric." Both are prohibited under Forum Rules.

Too easy for the "friendly atmosphere" that attracts members to our site to get upset and leave for reasons not related to our campers.

This is a friendly warning to the thread.
Please take it in the spirit it was given.
Herk

[wnytaxman]

Living on the border with Canada we have seen all the fluctuations of each others currency over the years. There are so many factors that play into the "value" of any given currency that one has to realize that any currency price is only temporary.

For us, here in Western NY, the Canadian Dollar has been a savior. The combination of Canadian shoppers and travelers has been a strong part of our economy for several years. I'm a CPA and my largest clients are the US operations of Canadian companies. Last year was the biggest year for sales tax revenues for Erie County, NY, and that was due mostly to the Canadian shoppers coming over for bargains, selection, and no GST.

As we on the border have learned, all things on each side of our borders are cyclical. We used to drive to Toronto to fly out on vacation and now the flow is reversed. We used to drive to Ft. Erie, ON, to fill with gas, and now that flow is reversed.

So for our Canadian Friends, c'mon down and enjoy the bargains and the cheap flights. We enjoy your company and we even speak the same language, eh!

[caper]

With the Canadian dollar almost at par with the US green back we are still paying almost double for RV parts. That is why I will travel the 1 hour to go to camping world in Syracuse NY. Our local dealer has complained to the supplier to have a better cost for the most popular items that RV'ers want and the supplier has lowered the cost for some items. Living on the border helps. Our cost for one hub assembly with brakes was $500 add on labour and taxes it does not take long to reach $3000.

[F and E Damp]

Two weeks ago, I took my sister to Vancouver Airport to get a flight home to the UK. At the airport concessions, they were paying 96 cents Canadian for a US dollar. We'd still fly via YVR even if it costs a bit more, as Canadian airport security is a lot more professional and less confrontational than the US TSA people.

We haven't been anywhere by air for 5 years, even though I'm a Boeing retiree and we have family in the UK. It just isn't worth the hassle any more.