What Will Happen to Boat Pricing when Euro Is Under Par to US$ ?

[goboatingnow]

Originally Posted by muskoka

Euros, pounds, dollars. It's a competition to see who's the healthiest horse in in the glue factory.

That's true and in that regard China owns the glue factory. But that's a different problem.

Dave

[David_Old_Jersey]

Originally Posted by muskoka

Euros, pounds, dollars. It's a competition to see who's the healthiest horse in in the glue factory.

Lol

The UK and the US should be careful what they wish for with the Eurozone - the problems are easily sortable (the hard part is the Politics).........and once sorted, the Dollar and Pound will look a bit sick in comparison.

Once the Euro has been established as a safe major currency markets will go for UK first, and then the US........

[cchesley]

Originally Posted by David_Old_Jersey

Lol

The UK and the US should be careful what they wish for with the Eurozone - the problems are easily sortable (the hard part is the Politics).........and once sorted, the Dollar and Pound will look a bit sick in comparison.

Once the Euro has been established as a safe major currency markets will go for UK first, and then the US........

In order for the Euro to be a 'safe major currency', the EU will have to deal with their unhappy southern brethren. The southern tier will either have to exit or the EU will have to find a way to mollify Greek, Italian and Spanish (not to mention Irish) gov't workers and pensions. I don't think that'll come easy.

[tropicalescape]

Originally Posted by cchesley

In order for the Euro to be a 'safe major currency', the EU will have to deal with their unhappy southern brethren. The southern tier will either have to exit or the EU will have to find a way to mollify Greek, Italian and Spanish (not to mention Irish) gov't workers and pensions. I don't think that'll come easy.

This sounds like the prelude to the American civil war !

[Dkdoyle]

If i was germany i woyld leave the eu now. This is draining the good countries with this slow drip. What is this lets all go diwn with the ship together mentality? Ok it is going to fail in my opinion. This is the same too big to fail mentality that got the us in such a drawn out mess. The Eu currency was a big mistake for Germany to get involved with. Get out before you drag down your own citizens.

[goboatingnow]

Originally Posted by Dkdoyle

If i was germany i woyld leave the eu now. This is draining the good countries with this slow drip. What is this lets all go diwn with the ship together mentality? Ok it is going to fail in my opinion. This is the same too big to fail mentality that got the us in such a drawn out mess. The Eu currency was a big mistake for Germany to get involved with. Get out before you drag down your own citizens.

You forget that the first country to break the rules of the Stability Pact was Germany, it allowed its deficit to grow beyond the agreed 3%.

Looking at the news today the paths already decided. Germany will get closer fiscal union and the EU commission will get budgetary oversight powers. The ECB will prop up sovereign debt via a " trick" mechanism of routing the money through the IMF. Hence the Eurozone will be like the US and the UK, no longer a hard currency, it will just print more Euros. ( like the fed prints dollars )

The Euro has been brilliant for Germany as it gives it access to a big market. Let to its own devices if it returned to the Detusch mark it's currency would soar and it would be faced with a collapse of competitiveness. There is no question of the ship going down. This is one of the wealthiest areas in the world. The euro problem is not one of sovereign debt problems ( if this was so the US would have collapsed, followed quickly by the UK). This is the problem of monetary union not having a corresponding fiscal union. The fact is all 17 euro nations will now move to much closer fiscal union as required by Germany, the quid pro quo will be the French requirement that the ECB will become a proper central bank and lender of last resort.

Dave

[Capt Phil]

Hey, Dave... good points, however the ECB is not able to issue Eurobonds with its present charter. Collateralizing debt in this form without 100% buyin from the the ECM member countries and to give up their individual fiscal control is impossible. I don't believe there is the discipline within the group to make this change, or to adhere to the necessary level of fiscal austerity and the individual governments will be unable to make the sale on a political basis within their respective countries. Having spent considerable time on the continent over the years, one impression overshadows all else and hat is one of sovereigh pride and identification. As a Frenchman, I can give up my franc but not my country, as an Italian , I can give up my lira but not my country, etc, etc. I believe this is a bridge too far fo most Europeans. But as the Euro slides in to oblivion, there will be great boat buys!!! Cheers, Capt Phil

[goboatingnow]

Originally Posted by Capt Phil

Hey, Dave... good points, however the ECB is not able to issue Eurobonds with its present charter. Collateralizing debt in this form without 100% buyin from the the ECM member countries and to give up their individual fiscal control is impossible. I don't believe there is the discipline within the group to make this change, or to adhere to the necessary level of fiscal austerity and the individual governments will be unable to make the sale on a political basis within their respective countries. Having spent considerable time on the continent over the years, one impression overshadows all else and hat is one of sovereigh pride and identification. As a Frenchman, I can give up my franc but not my country, as an Italian , I can give up my lira but not my country, etc, etc. I believe this is a bridge too far fo most Europeans. But as the Euro slides in to oblivion, there will be great boat buys!!! Cheers, Capt Phil

Necessity is a great lever. Fiscal union is on the way. No doubt about it. The ECB is gearing up to fund Eurozone via the IMF a legal trick that gets round it's charter. That charter will undoubtably be changed in response to treaty changes. ( the Germans are under ferocious pressure to capitulate) in the meantime the IMF will be used as proxy for the ECB. ( and an attempt to sterilise the money issue). Theres simply no way that the Eurozone will be allowed to split up. Ain't going to happen, despite it's many detractors fervent wishes. The consequences are too great, no more then Ireland wasn't allowed by the ECB to burn its banks bond holders , the 17 Eurozone countries aren't going to allow the dissolution of the euro. Necessity knows no laws.

As to boat buys, yes I suspect if your Chinese.

Dave

[Therapy]

Great thread.

Too bad no one knows what to invest in.

[VirtualVagabond]

Originally Posted by Therapy

Great thread.

Too bad no one knows what to invest in.

I thought everyone seems to know, except me....

But they're all different, and they all want to charge me to tell me. Funny that...

[Capt Phil]

Great discussion, Dave... I think we are in basic agreement on the issues, the options but not the outcomes. Will be fun to watch it all unravel! Although I sense you don't think it will... we will know in either a matter of weeks or months at the longest. I wonder what the contributors to IMF are thinking about the use of their funds to bail out the spendthrift Europeans? It is certainly good news the our Fed has agreed to help finance this venture at 0% to the tune of several trillion. Can't wait to see how that move plays out in our own election cycle. Not many here realize what Prince Bernanke has commited us to. As the world comes to te realization that borrowing to pay off our collective credit cards is not a wise move, the price of boats, houses, autos and most everything else worldwide will rise then come to a crashing drop in value. History is replete with examples of what we can expect. I sort of feel that we have hijacked this thread and would understand if the mods moved us elsewhere... cheers, Capt Phil

[VirtualVagabond]

I don't think the thread would need moving.
It's all relevent discussion to what could happen to boat prices and in keeping with the thread title.
And it's in the Dollars and Cents Category.
I'm also finding it very interesting.

[Dkdoyle]

I think we all understood when obama showed up to the meeting in europe that he would get killed at home if he publicly committed cash so he slipped it behind our backs to the imf. Saw that one coming a mile away.
Dave i respect your opinion and you sound like you are much closer to it but i still think it is not sustanable for any period of time with all the separate national interests.
We can't wait for next year and the next election here. One term president coming up. 15 trillion and counting

[Capt Phil]

+1, 'DK'... cheers, Capt Phil

[DJBrookster]

Originally Posted by Capt Phil

Great discussion, Dave... I think we are in basic agreement on the issues, the options but not the outcomes. Will be fun to watch it all unravel! Although I sense you don't think it will... we will know in either a matter of weeks or months at the longest. I wonder what the contributors to IMF are thinking about the use of their funds to bail out the spendthrift Europeans? It is certainly good news the our Fed has agreed to help finance this venture at 0% to the tune of several trillion. Can't wait to see how that move plays out in our own election cycle. Not many here realize what Prince Bernanke has commited us to. As the world comes to te realization that borrowing to pay off our collective credit cards is not a wise move, the price of boats, houses, autos and most everything else worldwide will rise then come to a crashing drop in value. History is replete with examples of what we can expect. I sort of feel that we have hijacked this thread and would understand if the mods moved us elsewhere... cheers, Capt Phil

The Fed is doing nobody a favour here but itself. Lest you forget the US can't control or agree how to control it's spiralling debt. At least the British government is trying to address the issues. All the Fed is trying to do is print it's way out of it's own debt crises but not be seen to devalue the $.