[Jimmy Chen Shiba DDS]

Just wanted to drop a thought on the topic of recent wild fluctuations in currency exchanges vs. F-cars true values/prices. Similar topic was brought up by 212Export regarding the wild upswing of Swiss Francs and the resulting disparity of Fcars in Swiss in another thread (which I cannot locate).
In comparison to several years ago, British pound hit a high of around 250, Swiss Francs of 105, Euro at 170 relative to JPYen. Now, the pound hovers around 125, Swiss F below 90, and Euro around 105 !!! Of course, the battered US $ value has suffered considerably. Whether this phenomenon is due to artificial cause or market fluctuations, this does affect the market values of F cars overall.
For one, the US buyers/sellers are seeing increase in F cars in $ terms. However, looking at the changes from the outside, now that the exchange rate is and unbearable 77yen per US$, prices of US F cars have not changed at all or worse in JPYen terms. The same can be said for British market and Euro market.
Therefore, while the increase in US F cars may seem like a strong demand, looking from a different perspective may simply unveil the fact that US $ is undergoing a significant readjustment.
(Did I make any sense ? I don't even know what I am saying anymore ! Yike !!! Oh well, just take it as another rant from me). w/ smiles Jimmy

[212Export]

Originally Posted by Jimmy Chen Shiba DDS

Just wanted to drop a thought on the topic of recent wild fluctuations in currency exchanges vs. F-cars true values/prices. Similar topic was brought up by 212Export regarding the wild upswing of Swiss Francs and the resulting disparity of Fcars in Swiss in another thread (which I cannot locate).
In comparison to several years ago, British pound hit a high of around 250, Swiss Francs of 105, Euro at 170 relative to JPYen. Now, the pound hovers around 125, Swiss F below 90, and Euro around 105 !!! Of course, the battered US $ value has suffered considerably. Whether this phenomenon is due to artificial cause or market fluctuations, this does affect the market values of F cars overall.
For one, the US buyers/sellers are seeing increase in F cars in $ terms. However, looking at the changes from the outside, now that the exchange rate is and unbearable 77yen per US$, prices of US F cars have not changed at all or worse in JPYen terms. The same can be said for British market and Euro market.
Therefore, while the increase in US F cars may seem like a strong demand, looking from a different perspective may simply unveil the fact that US $ is undergoing a significant readjustment.
(Did I make any sense ? I don't even know what I am saying anymore ! Yike !!! Oh well, just take it as another rant from me). w/ smiles Jimmy

Makes perfectly sense, Jimmy. And yes, the exchange rates are greatly manipulated by the central banks. Switzerland is the latest example of "centricism" bank politics to weaken a fundamentally strong Swiss Franc by artificially "flooding" the markets with Francs...with unknown outcome of final costs.

[Jimmy Chen Shiba DDS]

Originally Posted by 212Export

Makes perfectly sense, Jimmy. And yes, the exchange rates are greatly manipulated by the central banks. Switzerland is the latest example of "centricism" bank politics to weaken a fundamentally strong Swiss Franc by artificially "flooding" the markets with Francs...with unknown outcome of final costs.

My understanding was that they pegged the Swiss F to Euro, resulting in the recent easing of reaching sky high. Meanwhile, the helpless & hopeless JPYen stays expensive, not that it is good for the country. Just being pushed around by external forces.
Not that I am a pessimist nor am I an economist, but very soon Greece would default, Germany may walk out and major banks of Europe (especially Germany and France and indirectly US would have to face reality). When that happens, beyond that is anyone's guess. Jimmy

[212Export]

Originally Posted by Jimmy Chen Shiba DDS

My understanding was that they pegged the Swiss F to Euro, resulting in the recent easing of reaching sky high. Meanwhile, the helpless & hopeless JPYen stays expensive, not that it is good for the country. Just being pushed around by external forces.
Not that I am a pessimist nor am I an economist, but very soon Greece would default, Germany may walk out and major banks of Europe (especially Germany and France and indirectly US would have to face reality). When that happens, beyond that is anyone's guess. Jimmy

Jimmy, you are right, they peged the Swissie to the Euro, but just to one side, to diminish a appreciation. A further Swissie depreciation would be highly welcome to them. With other words, to have a weaker Swiss Franc, the swiss national bank is ready to have their balance sheet dictated by the politic of the European Central bank, really a "fantastic decision" to create long term stability for our country. We are as we are, we generally work long, people are normally well educated, we have low debts (at least compared to international standarts) etc.etc.. This is the reason for an ever sligthly appreciating Swiss Franc. It also pressures our companies to innovate and search for further productivity gains. So far, we lived well from that fact. And financial markets have taken notices about all this for the last couple of dezzenums. Why should a group of 3 people now decide to artificially change all that just because of their ideas of the world ?

Regarding Greece, I'm absolutely with you....(since a long time), unfortunately so.

[Jimmy Chen Shiba DDS]

Unfortuantely, I do agree with you on Greece which is hopeless. More serious problem, of course is Italy and Spain. Not a comforting thought at all. Jimmy

[champagne612]

Bailouts fail - ROI is never in the equation.

Debt creates more debt effecting GDP etc.

Greece unemployment at 16 per cent of which 42 per cent are between 20 - 35.

The only correction is a slow painful creation of jobs allowing competition in the market.

Taking on debt is a knee jerk reaction - adds no value to solutions.