[Newsbot]

Title: Canadian dollar falls more than 1 cent ahead of Bank of Canada decision
Category: Misc CDN
Posted By: Hyack
Date: 2015-01-20 21:53:17
Canadian

[martin14]

If rates are cut, the dollar will drop thru the toilet.
All that "Ontario manufacturing" is just blah blah blah BS.

If rates are hiked to protect the dollar, people carrying very high debt are in deep shit.
Well, they already are, but it will get worse.

We are so fucked.

[DrCaleb]

martin14 martin14:

If rates are cut, the dollar will drop thru the toilet.
All that "Ontario manufacturing" is just blah blah blah BS.

If rates are hiked to protect the dollar, people carrying very high debt are in deep shit.
Well, they already are, but it will get worse.

We are so fucked.

Said everyone, right around 1928.

"History doesn't repeat itself, but it does rhyme." - Mark Twain

[OnTheIce]

martin14 martin14:

If rates are cut, the dollar will drop thru the toilet.
All that "Ontario manufacturing" is just blah blah blah BS.

If rates are hiked to protect the dollar, people carrying very high debt are in deep shit.
Well, they already are, but it will get worse.

We are so fucked.

Manufacturing is already bad....a drop in the dollar won't make that much of a difference considering the state of the sector. It's too expensive to manufacture in Canada.

We'll be just fine.

[martin14]

$1:

The Bank of Canada surprised markets today by cutting its key overnight lending rate by a quarter of a percentage point.

The rate had been at one per cent since September 2010.

The central bank also scaled back its forecast for the country's economic growth this year, citing the steep plunge in oil prices.

It now sees 2015 growth of 2.1 per cent, down from 2.4 per cent.

Today is a good day to short the dollar.

At least we can forget all those cross border shopping threads.

[Jabberwalker]

If rates are hiked to protect the dollar, people carrying very high debt are in deep shit.
Well, they already are, but it will get worse.

We are so fucked.

That's it. They are trying to avoid an inevitable disaster of widespread loan defaults but all the lower rates will do is leverage consumers even more. This is going to be a nasty correction. Houses are not ATM machines.

[Jabberwalker]

OnTheIce OnTheIce:

martin14 martin14:

If rates are cut, the dollar will drop thru the toilet.
All that "Ontario manufacturing" is just blah blah blah BS.

If rates are hiked to protect the dollar, people carrying very high debt are in deep shit.
Well, they already are, but it will get worse.

We are so fucked.

Manufacturing is already bad....a drop in the dollar won't make that much of a difference considering the state of the sector. It's too expensive to manufacture in Canada.

We'll be just fine.

The nature of what we can manufacture is changing rapidly. Thousands of identical anythings ... widgets, appliances, car parts ... that type of manufacturing has left our shoes FOREVER, never to return. What is left is fabrication with a high custom element, requiring a lot of engineering and intelligence from run-to-run and items that are time sensitive and can't afford to sit in a container on the briny deep for six months. That's what's left for Ontario manufacturing ... all of North American manufacturing, as well. You would have to lower our currency to ten cents on today's dollar to compete against a Third World peasant work force.

[martin14]

You can even watch the dollar swirling the bowl live...


https://ca.finance.yahoo.com/q/bc?s=CADUSD%3DX&t=1d

[martin14]

Jabberwalker Jabberwalker:

If rates are hiked to protect the dollar, people carrying very high debt are in deep shit.
Well, they already are, but it will get worse.

We are so fucked.

That's it. They are trying to avoid an inevitable disaster of widespread loan defaults but all the lower rates will do is leverage consumers even more. This is going to be a nasty correction. Houses are not ATM machines.

I'm not sure the BoC did this thinking about keeping the housing bubble going, more like
slowing it from the big pop.
My guess is they want all manufacturers to take on large debt and hire people, right now.
Screw the importers, and imported everything will continue to cost more.


This comment I saw was funny.. and poignant.

Heading into the sharp curve, Poloz feels a flutter in the steering, and ... HITS THE NITROUS!

[Jabberwalker]

... and save some for a hit for yourself!

You've heard of sleepwalking into disaster? We're bootin' it over the cliff, like Selma and Louise.

[BartSimpson]

Here's hoping the CDN$ hits the skids again...I'm looking at buying another place in Vic!

[Thanos]

BartSimpson BartSimpson:

Here's hoping the CDN$ hits the skids again...I'm looking at buying another place in Vic!

Do ya wanna buy my place in Calgary and then rent it out to me?

First viewing tonight. Kind of on pins and needles.

[Unsound]

Good news for me. I'm buying a new house in the near future.

[Jabberwalker]

Buyer's market is coming. Wait for the "correction"

[Unsound]

I need a place to put my family by spring, can't wait. I'm not too worried about a correction though. Rates are low enough and my job is secure enough that I should be able to ride out any kind of normal economic downturns. And since we're hoping to find the home we'll stay in until the kids move out I'm not too bothered if it loses value for a few years. Either it'll come back in 15-20 years or things'll be so bad that a mortgage default will be the least of my worries.