As the dollar tanks: your predictions…

[sdworker]

And as to whether the fall of the dollar leads to rising interest rates, yes I am all with that concept too (as is Peter Schiff). I have been looking at TONS of rentals in the Carmel Valley / Torrey Highlands area over the last few weeks (over 30 of them). I cannot tell you how many of them are becoming vacant because the tenants just bought a house (granted a huge amount of them are homes being taken off the resale market, but it has been noticeable the # of tenants now becoming homeowners that I have run into). In addition to my house selling, two homes in my neighbourhodd just sold this past week (Torrey Highlands area off the 56). I see continued home buying all around in the Carmel Valley / Torrey Highlands area where I have been looking for rentals. IMHO it will only be when interest rates go up (and go up signficcantly if you follow the Peter Schiff philosophy) that this tide will turn. The only issue is that people keep rushing into the 10 year T-Note and mortgages are staying somewhat restrained as a result…so who knows when that day will come.

[34f3f3f]

If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

It seems to me, European cars have been (are) more expensive even when unloaded. They are not necessarily better but consumer fickleness spawns this thing called ‘cache’ which equates to ‘the price you paid’. People will always want other people to know that they paid more for their car.

[34f3f3f]

If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

It seems to me, European cars have been (are) more expensive even when unloaded. They are not necessarily better but consumer fickleness spawns this thing called ‘cache’ which equates to ‘the price you paid’. People will always want other people to know that they paid more for their car.

[34f3f3f]

If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

It seems to me, European cars have been (are) more expensive even when unloaded. They are not necessarily better but consumer fickleness spawns this thing called ‘cache’ which equates to ‘the price you paid’. People will always want other people to know that they paid more for their car.

[34f3f3f]

If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

It seems to me, European cars have been (are) more expensive even when unloaded. They are not necessarily better but consumer fickleness spawns this thing called ‘cache’ which equates to ‘the price you paid’. People will always want other people to know that they paid more for their car.

[34f3f3f]

If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

It seems to me, European cars have been (are) more expensive even when unloaded. They are not necessarily better but consumer fickleness spawns this thing called ‘cache’ which equates to ‘the price you paid’. People will always want other people to know that they paid more for their car.

[an]

I agree European cars have always been and will always will be more expensive than comparable Japanese. However, I don’t think people will continue to buy the European cars if comparable Japanese are at considerable discount. Even when the $ has been declining drastically in the last 5 years, prices of European cars hasn’t increase much, just 1-2% a year. Same goes for Japanese models. So if all of a sudden, the European cars increased in price by 40-50%, I highly doubt people will put up with it. There’s not that many people who can afford $60k+ cars. If the entry level luxury European cars get to that level, they’d probably be squeezed out of the market. That’s just my guess. Just look at how many 550i and E550 get sold each month and you can see how many people actually can afford that price.

[an]

I agree European cars have always been and will always will be more expensive than comparable Japanese. However, I don’t think people will continue to buy the European cars if comparable Japanese are at considerable discount. Even when the $ has been declining drastically in the last 5 years, prices of European cars hasn’t increase much, just 1-2% a year. Same goes for Japanese models. So if all of a sudden, the European cars increased in price by 40-50%, I highly doubt people will put up with it. There’s not that many people who can afford $60k+ cars. If the entry level luxury European cars get to that level, they’d probably be squeezed out of the market. That’s just my guess. Just look at how many 550i and E550 get sold each month and you can see how many people actually can afford that price.

[an]

I agree European cars have always been and will always will be more expensive than comparable Japanese. However, I don’t think people will continue to buy the European cars if comparable Japanese are at considerable discount. Even when the $ has been declining drastically in the last 5 years, prices of European cars hasn’t increase much, just 1-2% a year. Same goes for Japanese models. So if all of a sudden, the European cars increased in price by 40-50%, I highly doubt people will put up with it. There’s not that many people who can afford $60k+ cars. If the entry level luxury European cars get to that level, they’d probably be squeezed out of the market. That’s just my guess. Just look at how many 550i and E550 get sold each month and you can see how many people actually can afford that price.

[an]

I agree European cars have always been and will always will be more expensive than comparable Japanese. However, I don’t think people will continue to buy the European cars if comparable Japanese are at considerable discount. Even when the $ has been declining drastically in the last 5 years, prices of European cars hasn’t increase much, just 1-2% a year. Same goes for Japanese models. So if all of a sudden, the European cars increased in price by 40-50%, I highly doubt people will put up with it. There’s not that many people who can afford $60k+ cars. If the entry level luxury European cars get to that level, they’d probably be squeezed out of the market. That’s just my guess. Just look at how many 550i and E550 get sold each month and you can see how many people actually can afford that price.

[an]

I agree European cars have always been and will always will be more expensive than comparable Japanese. However, I don’t think people will continue to buy the European cars if comparable Japanese are at considerable discount. Even when the $ has been declining drastically in the last 5 years, prices of European cars hasn’t increase much, just 1-2% a year. Same goes for Japanese models. So if all of a sudden, the European cars increased in price by 40-50%, I highly doubt people will put up with it. There’s not that many people who can afford $60k+ cars. If the entry level luxury European cars get to that level, they’d probably be squeezed out of the market. That’s just my guess. Just look at how many 550i and E550 get sold each month and you can see how many people actually can afford that price.

[LA_Renter]

Here is a prediction, OPEC looks for a Non-US Dollar Currency. This is getting interesting.

“RIYADH, Nov 18 (Reuters) – OPEC states agreed their finance ministers would meet before Dec. 5 to discuss the sliding dollar’s impact on their economies after Iran and Venezuela recommended pricing oil against a currency basket.”

“Pricing oil against a currency basket was “not specifically on the agenda” of the finance minister’s meeting, he said.
Ecuador, which rejoined the cartel at the Riyadh summit after 15 years, backed Venezuela’s and Iran’s push to have their concerns about the dollar included in the summit communique, Jabor said.
“Other member states discreetly share the same concern,” he said declining to elaborate or say what Iraq’s position was.”

http://www.guardian.co.uk/feedarticle?id=7086210

Do you think this has put The FED into a bit of a corner here, or maybe “vice” would be the appropriate word.??

[LA_Renter]

Here is a prediction, OPEC looks for a Non-US Dollar Currency. This is getting interesting.

“RIYADH, Nov 18 (Reuters) – OPEC states agreed their finance ministers would meet before Dec. 5 to discuss the sliding dollar’s impact on their economies after Iran and Venezuela recommended pricing oil against a currency basket.”

“Pricing oil against a currency basket was “not specifically on the agenda” of the finance minister’s meeting, he said.
Ecuador, which rejoined the cartel at the Riyadh summit after 15 years, backed Venezuela’s and Iran’s push to have their concerns about the dollar included in the summit communique, Jabor said.
“Other member states discreetly share the same concern,” he said declining to elaborate or say what Iraq’s position was.”

http://www.guardian.co.uk/feedarticle?id=7086210

Do you think this has put The FED into a bit of a corner here, or maybe “vice” would be the appropriate word.??

[LA_Renter]

Here is a prediction, OPEC looks for a Non-US Dollar Currency. This is getting interesting.

“RIYADH, Nov 18 (Reuters) – OPEC states agreed their finance ministers would meet before Dec. 5 to discuss the sliding dollar’s impact on their economies after Iran and Venezuela recommended pricing oil against a currency basket.”

“Pricing oil against a currency basket was “not specifically on the agenda” of the finance minister’s meeting, he said.
Ecuador, which rejoined the cartel at the Riyadh summit after 15 years, backed Venezuela’s and Iran’s push to have their concerns about the dollar included in the summit communique, Jabor said.
“Other member states discreetly share the same concern,” he said declining to elaborate or say what Iraq’s position was.”

http://www.guardian.co.uk/feedarticle?id=7086210

Do you think this has put The FED into a bit of a corner here, or maybe “vice” would be the appropriate word.??

[LA_Renter]

Here is a prediction, OPEC looks for a Non-US Dollar Currency. This is getting interesting.

“RIYADH, Nov 18 (Reuters) – OPEC states agreed their finance ministers would meet before Dec. 5 to discuss the sliding dollar’s impact on their economies after Iran and Venezuela recommended pricing oil against a currency basket.”

“Pricing oil against a currency basket was “not specifically on the agenda” of the finance minister’s meeting, he said.
Ecuador, which rejoined the cartel at the Riyadh summit after 15 years, backed Venezuela’s and Iran’s push to have their concerns about the dollar included in the summit communique, Jabor said.
“Other member states discreetly share the same concern,” he said declining to elaborate or say what Iraq’s position was.”

http://www.guardian.co.uk/feedarticle?id=7086210

Do you think this has put The FED into a bit of a corner here, or maybe “vice” would be the appropriate word.??

[Author]

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