Has the dollar appreciation changed prices?

[narikin]

we all moaned at Phase new insanely high price of $43,000 for P65+, which seemed to be based on the euro price when the dollar was toast.

now the dollar has rebounded by some 12-15%, has anyone noticed better offers on MF digital backs in general?

there should be quite a bit more wiggle room now for the dealers to give better prices,

any dealer care to comment?

[thsinar]

I totally agree to this: since years it was the "other" currencies that have been blamed, when in fact it is purely and solely a US dollar problem and the continuous policies of a weak currency.

Thierry

European companies have been swallowing the weak dollar losses for years. Recent higher product prices in dollars are only a minor correction to that problem. Note that in 2003 one US dollar was one euro. Today it's still one dollar and 45 cents for one euro, although it has been a lot worse too. This would be some 27,517.- euros for that same back (which costs USD 39,900.-, by the way). But I don't think Europeans are going to get such a reasonabe price, although the camera comes from there. It's about time that Americans are going to understand that the free ride by printing green tickets cannot go on forever. Just look at the massive US debt that has piled up and think for more than a few seconds what this actually means to the position of the dollar in the world's economy. Many companies from outside the US no longer want to finance the lust for goods without margins. Currently the Chinese can still be squeezed somewhat, next will be the Vietnamese and people from India, but even the poor will stop working when they don't earn anything anymore. So, don't count on much wiggle room for the state-of-the-art current backs.
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[EricWHiss]

Yes and the worst part about all of that is what we Americans are mostly spending those newly minted dollars on.

[Dustbak]

I am actually amazed to see how the dollar is rebounding in light of the things that are happening with financial institutions in the US. Especially considering the support they are receiving from the government and FED, the money press is running like crazy. You would expect the dollar to decline even more against other currencies unless these things were already priced in. This would make you wonder even more...

[BruceHouston]

I agree and I am from here (U.S.).  Things will come to a screeching halt soon, I fear.  But the recession/inflation will not be limited to the U.S.

[elitegroup]

I agree and I am from here (U.S.).  Things will come to a screeching halt soon, I fear.  But the recession/inflation will not be limited to the U.S.
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Great Depression coming CNN reports [a href=\"http://www.youtube.com/watch?v=dR7h8NBQU3E&feature=related]http://www.youtube.com/watch?v=dR7h8NBQU3E&feature=related[/url]

Economic collapse http://www.youtube.com/watch?v=cziN3gt-hic&feature=related

and grave circumstances regarding the Global Food Crisis.......

Part one http://www.youtube.com/watch?v=xVfjrb9JOw4&feature=related

Part two http://www.youtube.com/watch?v=8ByifhQTbZU&feature=related

Things are looking grim  

[klane]

REM Wrote a song in the 80's  "It's the End of the World as We Know It"

It may seem to have a humorous undertone, but look up the lyrics and look at the past 10 years.

Its amazingly eerily in sync with whats going on, top it off the song was written about a dream Michael Stipe had.

Crazy stuff.

[Rob C]

All very depressing enough, but think about the position for people living in Euroland but getting their money from the UK in pounds.

The value of the pound v. Euro has fallen by around 17% in recent months and house prices in the UK as well as Spain are in freefall. Had to cancel a car we´d ordered just a few weeks ago because of the changes in purchase price (in pounds - the € price was unchanged) and the dealer wasn´t surprised: seems car sales in Spain are down about 40% these past few weeks too.

Crisis? What crisis?

Rob C

[rainer_v]

All very depressing enough, but think about the position for people living in Euroland but getting their money from the UK in pounds.

The value of the pound v. Euro has fallen by around 17% in recent months and house prices in the UK as well as Spain are in freefall. Had to cancel a car we´d ordered just a few weeks ago because of the changes in purchase price (in pounds - the € price was unchanged) and the dealer wasn´t surprised: seems car sales in Spain are down about 40% these past few weeks too.

Crisis? What crisis?

Rob C
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i am waiting too for our own house crash in europe, meanwhile all eyes are focussed to the US economy.
if you see directly what happened in spain in the last 10 years, where they have built countrywide 100.000s of houses which no one needs, one has to be blind not to fell how this story will go on.
i wait for the collapse first in spain and england than in the € zone.  this will not be less than in the US.

whole towns appeared in the last years in spain ( particulary in very beautyfull and protected landscape zones, permitted from corrupted townhall administrations ) and these houses or constructions wait now ( all more or less empty ) that one will finish the buildings, which no one will do because now the credit prices are up and the house prices fall . these house constructions dont have had any sense if the prices dont increase ( they just are built for speculation ).

( but all that is nothing compared to the ruined nature we leave for our children ) .

[narikin]

o-k-a-y....

I believe Phase now price their backs in Euros so come what may - dollar high or low, UK pound high or low, Sfr high or low - they get a set amount of Euros for each unit. makes sense. BUT it should mean the room for maneuver goes up or down with the currency.

When they launched the P65+ the dollar was really, really low, which meant the price was $43,000 (with 3 year warranty, or $40k with 1 year)

Now that same # of euros means ~12% less dollars. that's all.

so - where's that discount gone?

[rainer_v]

o-k-a-y....

I believe Phase now price their backs in Euros so come what may - dollar high or low, UK pound high or low, Sfr high or low - they get a set amount of Euros for each unit. makes sense. BUT it should mean the room for maneuver goes up or down with the currency.

When they launched the P65+ the dollar was really, really low, which meant the price was $43,000 (with 3 year warranty, or $40k with 1 year)

Now that same # of euros means ~12% less dollars. that's all.

so - where's that discount gone?
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did you had the same opinion in the last years each time when the dollar went lower?

[narikin]

Rainer - this isnt a Europe vs US competition!

I am a European in fact, and YES I expect imported item prices to go up and down with the currency I'm paying in. that's economic forces.

If Phase chose for market share/competitive reasons to subsidise the US market in the past (P25 / P45/ P45+), that's their decision, and their loss/market gain. They obviously put a stop to it with the P65+, and went for a straight euro price to dealers.

so - if you actually read what I say...  the price for the P65+ was set at a time when the dollar was at its lowest point for over a decade - that has now eased. so... where's the ~12% margin on that gone - its a simple question!

[rainer_v]

Rainer - this isnt a Europe vs US competition!

I am a European in fact, and YES I expect imported item prices to go up and down with the currency I'm paying in. that's economic forces.

If Phase chose for market share/competitive reasons to subsidise the US market in the past (P25 / P45/ P45+), that's their decision, and their loss/market gain. They obviously put a stop to it with the P65+, and went for a straight euro price to dealers.

so - if you actually read what I say...  the price for the P65+ was set at a time when the dollar was at its lowest point for over a decade - that has now eased. so... where's the ~12% margin on that gone - its a simple question!
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i believe they price their items with longer calculations and simply cant follow each up and down of the currencies. dont we complain here in LL often about the intransparency of the pricings?
i think it would get even worser than it is now, if every 4 weeks is made a new price calculation for course corrections. why not to have one time the situation that it becomes reasonable cheaper to buy the tools in europa, as i did often in B+H in the past. this is no US - € offense either, but too long time i.m.o. it was the contrarysituation.

[Mort54]

When they launched the P65+ the dollar was really, really low, which meant the price was $43,000 (with 3 year warranty, or $40k with 1 year)

Now that same # of euros means ~12% less dollars. that's all.

The US dollar today is worth roughly 0.69 euros. That's up from roughly 0.62 euros three to four months ago. It's going in the right direction, but it's hardly a big recovery, and much worse than the 12% difference you mention.

http://www.x-rates.com/d/EUR/USD/graph120.html

[narikin]

using your rate site:
July 15th when Phase announced the P65+ it was $1.59 $ to the euro.
today it is $1.43
that's a change of 0.16c out of 1.59 - a hair over 10%.

okay, that's less than the 12% I rough guessed, but I wouldn't call that"much worse than you mention" as its over $4300 on a $43,000 back...

not small change.

unusual how quiet the normally helpful Phase dealers have been on this!

[peegeenyc]

The US dollar today is worth roughly 0.69 euros. That's up from roughly 0.62 euros three to four months ago. It's going in the right direction, but it's hardly a big recovery, and much worse than the 12% difference you mention.

http://www.x-rates.com/d/EUR/USD/graph120.html
[a href=\"index.php?act=findpost&pid=219458\"][{POST_SNAPBACK}][/a]

um - do the math:

0.69 to 0.62 is a change of 0.07 in 0.69 - thats between 10 and 11%.

so... 12% is not far off!

[Rob C]

Rainer

The house market in Spain HAS collapsed already - there is no need to wait for it.

Part of the problem is the high value of the € which is killing places that were previously independent. Spain and France, for example, would love to be able to devalue their currency as they could, in the days of the peseta and the franc. Now, with the crazy € tied to so many collective deals and swindles, with so many new eastern countries being allowed in, their economies in rags, the whole European edifice is rotting from the centre.

To make it worse, the pound is so closely tied to the dollar (via mutual investment and joint-ownership of companies) that it´s the old story again: when the dollar sneezes, the pound catches pneumonia. To compound that, the US election fever, reflected on UK tv to the extent that there is hardly anything else on the damn news, frightens the socks off the UK money because the uncertainties about which party will win and even if it will make any difference at all, makes investment seem madness. As somebody said today on Sky News, it isn´t about interest rates in the UK, it´s about money supply not being there. The UK banks have been bitten so hard by their own recklessness to exposure to US markets that they have reacted to the opposite extreme at home: mortgages are not available - the interest rate is secondary to that basic flaw.

No, it is NOT a bashing the States thing; it is more a fear of what in hell will happen TO the States thing. Neither party seems to offer credible answers, the entire game, from the outsider´s point of view at least, is how to schmooze delegates at monster-sized meetings, making vague statements of intent but, as with the bunch in the UK, no real, concrete policy just the waving of thousands of little flags, cardboard signs with slogans and the pushing of irrelevant family members onto the world stage. The world´s future hangs on these sensibilities?

God help us all - we need each other but seem intent on meltdown.

Rob C

[rainer_v]

Rainer

The house market in Spain HAS collapsed already - there is no need to wait for it.


Rob C
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yes, but there is some delay till enough credits crash that the bank system here will get similar problems than in the states.

[elitegroup]

Rainer

No, it is NOT a bashing the States thing; it is more a fear of what in hell will happen TO the States thing. Neither party seems to offer credible answers, the entire game, from the outsider´s point of view at least, is how to schmooze delegates at monster-sized meetings, making vague statements of intent but, as with the bunch in the UK, no real, concrete policy just the waving of thousands of little flags, cardboard signs with slogans and the pushing of irrelevant family members onto the world stage. The world´s future hangs on these sensibilities?

God help us all - we need each other but seem intent on meltdown.

Rob C
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The forecast for 2012 is not looking good for the global economy compacted with the current world food crisis.

I'd feel compelled to get ones affairs in order ASAP. I think it's prudent to hold onto hard assets/resources and liquidize paper equity. Play it safe and look at some kind of food storage plan.

Hope this doesn't sound to ominous but I think it would be wise to prepare for difficult times ahead.

[Mort54]

um - do the math:

0.69 to 0.62 is a change of 0.07 in 0.69 - thats between 10 and 11%.

so... 12% is not far off!
[a href=\"index.php?act=findpost&pid=219466\"][{POST_SNAPBACK}][/a]

I interpreted the original comment to suggest there was only a 12% difference in the value between the euro and the dollar. But if the comment was that the dollar's value has gained by 12% compared to where it was - then that's about right.