Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 17-11-2011, 19:14   #31
CF Adviser
Moderator Emeritus
 
TaoJones's Avatar

Cruisers Forum Supporter

Join Date: Dec 2006
Location: Montrose, Colorado
Posts: 9,850
Re: What Will Happen to Boat Pricing when Euro Is Under Par to USD ?

Quote:
Originally Posted by rover88 View Post
I don't like to brag but I happen to be a billionaire. In fact my current fortune is exactly twelve billion dollars. Now just because said fortune happens to be in Zimbabwean currency (worth a few beers at most) should not affect the respect and deference I deserve as a man of "means".

When I left Zimbabwe in 1980 Z$1.00 was worth US$1.50. Talk about useless paper money.
Heh . . . you should rename your vessel the Gideon Gono.

Gideon Gono - Wikipedia, the free encyclopedia

TaoJones
__________________

__________________
"Your vision becomes clear only when you look into your own heart. Who looks outside, dreams; who looks within, awakens."
Carl Gustav Jung (1875-1961)
TaoJones is offline   Reply With Quote
Old 17-11-2011, 19:23   #32
Registered User
 
muskoka's Avatar

Join Date: Jun 2006
Location: Sai Kung, Hong Kong
Boat: FP Lavezzi 40 / Hatteras 48
Posts: 775
Re: What Will Happen to Boat Pricing when Euro Is Under Par to USD ?

Quote:
Originally Posted by webejammin View Post
Supply and demand causes prices
Supply and demand. And financing.

Squeeze the financing pipeline and demand falls.

Most of those flash boats are bought with money squeezed out of a house, or with boat mortgages. I imagine it's a minority of owners who can actually raid their bank account to buy the dream.
__________________

__________________
muskoka is offline   Reply With Quote
Old 17-11-2011, 21:29   #33
Registered User

Join Date: Nov 2010
Posts: 61
Re: What Will Happen to Boat Pricing when Euro Is Under Par to USD ?

Quote:
Originally Posted by muskoka View Post
Supply and demand. And financing.

Squeeze the financing pipeline and demand falls.

Most of those flash boats are bought with money squeezed out of a house, or with boat mortgages. I imagine it's a minority of owners who can actually raid their bank account to buy the dream.
I agree. I bet most boats are exactly that - borrowed money. No real ownership. It is the way of the world anymore. People living a lie on borrowed money.
__________________
Dakota450 is offline   Reply With Quote
Old 17-11-2011, 22:23   #34
Registered User
 
Hillbillylad's Avatar

Join Date: Aug 2010
Boat: Westerly Centaur
Posts: 207
Re: What Will Happen to Boat Pricing when Euro Is Under Par to USD ?

Quote:
Originally Posted by Dakota450 View Post
I agree. I bet most boats are exactly that - borrowed money. No real ownership. It is the way of the world anymore. People living a lie on borrowed money.
Many sure but not all. I bought cheap because cheap is all I got to spend, like many on this forum I believe. I didn't buy on a whim or for a status symbol but simply because I wanted to be on a boat. But, it is bought and paid for and anything I put on it will be paid for. I currently keep a house and all its bills on a British army war pension. I know I can live healthier, happier and with more spare cash on a boat. I think many are considering that option too as a realistic alternative.
For those poor plastic millionaires that lived on credit and must lose their boat...Sucks to be you....aye
__________________
Hillbillylad is offline   Reply With Quote
Old 18-11-2011, 04:10   #35
Armchair Bucketeer
 
David_Old_Jersey's Avatar

Join Date: Oct 2006
Posts: 10,013
Images: 4
Re: What Will Happen to Boat Pricing when Euro Is Under Par to US$ ?

Quote:
Originally Posted by goboatingnow View Post
All will happen is the Germans will be overrules the EcB will do quantise easing plenty money albeit with inflation and falling value. ( which is what the US and the UK is doing)
The immediate crisis is fairly easy to solve - Germans are thinking ahead to the next one, and are wise enough to know it can't be avoided (there is always a "next one" ) - but want to make sure it is manageable. and not solely there problem .........and at the moment they can force through changes (he who pays the piper etc).

For the future simply boils down to countries being able to pay for themselves.
__________________
David_Old_Jersey is offline   Reply With Quote
Old 18-11-2011, 04:20   #36
Armchair Bucketeer
 
David_Old_Jersey's Avatar

Join Date: Oct 2006
Posts: 10,013
Images: 4
Re: What Will Happen to Boat Pricing when Euro Is Under Par to USD ?

Quote:
Originally Posted by TaoJones View Post
If they're both circling the bowl
That's a good one
__________________
David_Old_Jersey is offline   Reply With Quote
Old 18-11-2011, 06:48   #37
Nearly an old salt
 
goboatingnow's Avatar

Cruisers Forum Supporter

Join Date: Jun 2009
Posts: 13,649
Images: 3
Quote:
Originally Posted by David_Old_Jersey

For the future simply boils down to countries being able to pay for themselves.
Well there goes the UK the USA and the western world. Better start learning Chinese.

Dave
__________________
Check out my new blog on smart boat technology, networking and gadgets for the connected sailor! - http://smartboats.tumblr.com
goboatingnow is offline   Reply With Quote
Old 18-11-2011, 14:52   #38
Armchair Bucketeer
 
David_Old_Jersey's Avatar

Join Date: Oct 2006
Posts: 10,013
Images: 4
Re: What Will Happen to Boat Pricing when Euro Is Under Par to US$ ?

Quote:
Originally Posted by goboatingnow View Post
Well there goes the UK the USA and the western world. Better start learning Chinese.

Dave
I think we'll only need to learn "Yes Boss"
__________________
David_Old_Jersey is offline   Reply With Quote
Old 18-11-2011, 15:34   #39
Registered User

Join Date: Dec 2008
Location: ontario canada
Boat: grampian 26
Posts: 1,743
Re: What Will Happen to Boat Pricing when Euro Is Under Par to USD ?

Quote:
Originally Posted by rover88 View Post
I don't like to brag but I happen to be a billionaire. In fact my current fortune is exactly twelve billion dollars. Now just because said fortune happens to be in Zimbabwean currency (worth a few beers at most) should not affect the respect and deference I deserve as a man of "means".

When I left Zimbabwe in 1980 Z$1.00 was worth US$1.50. Talk about useless paper money.
Not useless at all. Think of it as colourful toilet paper.
__________________
perchance is offline   Reply With Quote
Old 18-11-2011, 15:49   #40
Registered User
 
Hillbillylad's Avatar

Join Date: Aug 2010
Boat: Westerly Centaur
Posts: 207
Re: What Will Happen to Boat Pricing when Euro Is Under Par to US$ ?

China too is feeling the economic hurt. If your customers don't have money, you don't have a business. Everyone is in the same sinking boat just now.
__________________
Hillbillylad is offline   Reply With Quote
Old 18-11-2011, 16:02   #41
Armchair Bucketeer
 
David_Old_Jersey's Avatar

Join Date: Oct 2006
Posts: 10,013
Images: 4
Re: What Will Happen to Boat Pricing when Euro Is Under Par to US$ ?

Quote:
Originally Posted by Hillbillylad View Post
China too is feeling the economic hurt. If your customers don't have money, you don't have a business. Everyone is in the same sinking boat just now.
China sees this as (overall) a good thing - because they are looking ahead, 10, 20, 50 and 100 years. The West is largely worrying about the next quarter........
__________________
David_Old_Jersey is offline   Reply With Quote
Old 18-11-2011, 23:24   #42
Registered User
 
webejammin's Avatar

Join Date: Mar 2011
Location: Pacific NW, sailing the Columbia River, USA
Boat: Gemini 105MC 34 ft hull#753
Posts: 951
Images: 3
Re: What Will Happen to Boat Pricing when Euro Is Under Par to US$ ?

Quote:
Originally Posted by David_Old_Jersey View Post
I think we'll only need to learn "Yes Boss"
To who ???
__________________
Wind in my hair and a nice catamaran
Phil & Elaine
webejammin is offline   Reply With Quote
Old 19-11-2011, 09:00   #43
Senior Cruiser

Cruisers Forum Supporter

Join Date: Mar 2006
Location: Nevada City. CA
Boat: Sceptre 41
Posts: 3,745
Images: 9
Re: What Will Happen to Boat Pricing when Euro Is Under Par to US$ ?

Quote:
Originally Posted by DJBrookster View Post
USD is in it's dying spiral. Yes it may survive a little longer, but as a reserve currency.....bye bye. Printed too many dollars and economy is screwed. China and Russia own your debt, your just Greece in the wings!!
I can't remember the guys name but there was a Russian Billionaire who got on the wrong side of Putin and was/is jailed. There are currently Trillions of dollars sitting on the sidelines being held as cash by corporations. Do you think much of this money is held in politically unstable countries like China and Russia.

Quote:
Originally Posted by TaoJones View Post
This gets to the heart of the matter, and succinctly. It is only the status of the US dollar as the world's reserve currency that has kept it from a horrendous devaluation these past three years. It will be replaced as the reserve currency in time (probably sooner, rather than later) and then we will see the race to the bottom begin in earnest.

Interestingly, I just saw a statistic today that the US Federal Reserve has actually surpassed China as the top holder of US debt. The relevance of that should not be underestimated . . . any country that creates "money" out of thin air to buy it's own debt is already in a death spiral.


TaoJones
Even though the US Congress is making a mockery of being called a political body. They can't get anything done. The US is relatively more stable then most other countries in the world. If you had 100 million $ or Euros where would you invest it or try to keep it safe. The US for all its problems has to big advantages 1) It has a big enough economy to absorb an investment of $100b and 2) It has a legal system that is mostly transparent to protect your ownership of that money. I'm not saying that there isn't the need for a change or that a change isn't coming but given the turmoil in the world the US T-Bill is still considered safe by most people with a lot of money. Remember in 2007 or 8 when the T-Bill had a negative rate? (BTW Tao if you can give us a link to that statistic about the Fed Reserve I would love to read the article.)

Quote:
Originally Posted by zeta View Post
Since we are all forecasting, I think maybe we should be talking about the renminbi, "the peoples currency". China is currently buying the world via bond purchases and has the man power to cash in. Just saying.
English Common Law and its derivations, or should I say the lack of it in China, is what makes people hesitant to invest in China.

And on the OP comment. Perhaps you are right that the USD and the Euro may come on Par. I can't find anything to back up my claim but I seem to remember a time when 1 Euro cost USD$.087. People with lots of cash bought up properties in Europe. A friend bought an apartment in Costa Del Sol Spain for $35k. While boats can be moved, as opposed to apartments, Aren't we seeing exactly what the OP is talking about happening right now. Aussies and Europeans are buying US boats because of the strength of their respective currencies and then sailing them home. The currency exchange rate is going to shift like the tide. IT is not at all predictable like the tide though. At some point the Euro and the USD are going to be at Par. That will make European boats more attractive to US buyers. I just lost a bunch of money on a boat I bought in Europe because of the exchange rate. But then again I guess I paid for the fun that my family and I had in Europe last summer and for the next four summers. It is money that I am prepared to lose or -- As my account says -- I'm buying memories.
__________________
Fair Winds,

Charlie

Between us there was, as I have already said somewhere, the bond of the sea. Besides holding our hearts together through long periods of separation, it had the effect of making us tolerant of each other's yarns -- and even convictions. Heart of Darkness
Joseph Conrad
Charlie is offline   Reply With Quote
Old 19-11-2011, 09:14   #44
Registered User

Join Date: Jul 2006
Posts: 3,949
Re: What Will Happen to Boat Pricing when Euro Is Under Par to US$ ?

Charlie makes the most sense in this thread. Currencies will rise and fall in value against one another, and yes eventually price is determined by supply and demand. But, boats are not commodities--there are relatively very few of them, and each one is very different from the next even if they are the same model. So, the rule of supply and demand doesn't rule as strictly with boats. Plus, it takes quite a bit of time for the market to catch up with currency fluctuations that happen nearly instantly. For example, most boaters in the USA set a price and then hold it for months or years as they try to sell their boat--they don't watch what the Euro is doing and try to adjust their price to match. Europeans do the same thing--they price in Euros and don't watch the dollar to see what it is doing. Eventually, if enough Americans go to Europe and buy boats because the Euro is down the price of boats will go up, but that takes awhile--maybe years. So, there will be buying opportunities for someone with cash who is in the right place at the right time. If the Euro crashes I suspect there will be some boat owners who will need to sell off their boats fast in the hopes of raising cash, and somebody paying in dollars might be able to get some great deals if they are ready to act fast.
__________________
Kettlewell Cruising
Kettlewell is offline   Reply With Quote
Old 19-11-2011, 10:13   #45
Nearly an old salt
 
goboatingnow's Avatar

Cruisers Forum Supporter

Join Date: Jun 2009
Posts: 13,649
Images: 3
Re: What Will Happen to Boat Pricing when Euro Is Under Par to US$ ?

Quote:
Originally Posted by Kettlewell View Post
Charlie makes the most sense in this thread. Currencies will rise and fall in value against one another, and yes eventually price is determined by supply and demand. But, boats are not commodities--there are relatively very few of them, and each one is very different from the next even if they are the same model. So, the rule of supply and demand doesn't rule as strictly with boats. Plus, it takes quite a bit of time for the market to catch up with currency fluctuations that happen nearly instantly. For example, most boaters in the USA set a price and then hold it for months or years as they try to sell their boat--they don't watch what the Euro is doing and try to adjust their price to match. Europeans do the same thing--they price in Euros and don't watch the dollar to see what it is doing. Eventually, if enough Americans go to Europe and buy boats because the Euro is down the price of boats will go up, but that takes awhile--maybe years. So, there will be buying opportunities for someone with cash who is in the right place at the right time. If the Euro crashes I suspect there will be some boat owners who will need to sell off their boats fast in the hopes of raising cash, and somebody paying in dollars might be able to get some great deals if they are ready to act fast.

The point being that theres no point waiting for a currency event you cant really predict. Sitting around waiting for x or Y to happen is foolish.

Remember most Euro owners will simply sell to other Euro area owners as all they really want is a quantity of Euros, Equally the dollar could tank.

Dave

Dave
__________________

__________________
Check out my new blog on smart boat technology, networking and gadgets for the connected sailor! - http://smartboats.tumblr.com
goboatingnow is offline   Reply With Quote
Reply

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Girl Overboard ! TigerLilly Health, Safety & Related Gear 82 24-02-2016 23:07
Are You Scared of Wood ? CharlieCobra General Sailing Forum 116 18-03-2013 17:45
Questions About Putting a Boat Into Charter . . . Rich_Maler Dollars & Cents 27 07-03-2012 20:29
Thinking of Buying a Sailing Catamaran ? Some Thoughts . . . papagena Multihull Sailboats 12 23-12-2011 11:21
Need Advice on Buying a Boat Capt. lulz Liveaboard's Forum 45 25-07-2011 13:17



Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 20:38.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.