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

[TaoJones]

Originally Posted by rover88

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

[muskoka]

Originally Posted by webejammin

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.

[Dakota450]

Originally Posted by muskoka

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.

[Hillbillylad]

Originally Posted by Dakota450

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

[David_Old_Jersey]

Originally Posted by goboatingnow

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]

Originally Posted by TaoJones

If they're both circling the bowl

That's a good one

[goboatingnow]

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

[David_Old_Jersey]

Originally Posted by goboatingnow

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"

[perchance]

Originally Posted by rover88

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.

[Hillbillylad]

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.

[David_Old_Jersey]

Originally Posted by Hillbillylad

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........

[webejammin]

Originally Posted by David_Old_Jersey

I think we'll only need to learn "Yes Boss"

To who ???

[Charlie]

Originally Posted by DJBrookster

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.

Originally Posted by TaoJones

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.)

Originally Posted by zeta

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.

[Kettlewell]

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.

[goboatingnow]

Originally Posted by Kettlewell

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