09-15-2004, 10:07 PM
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aspiring banker
Join Date: Mar 2002
Location: toronto
Posts: 10,870
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Quote:
Originally posted by rickholio
Guys, guys, guys... you're looking at this all wrong.
Okay, the exchange situation is a bad thing, granted. On an individual basis we'll feel the pinch, but if your margins are so razor-thin that the loss of conversion makes you go under, then chances are your business was already on its last legs and you needed to strike off in new directions anyways.
There's a few things can be done to help cushion the blow here...
* Start cutting deals with people who pay in euros. The euro has been gaining steadily over the last couple years and it looks as though it's going to continue. Ditto with the UKP, AUD, Yen, and Rupee... at least, all in comparison with the USD. Diversification is always the best method to mitigate risk.
* Obtain a US funds account so you can perform your own currency speculation and sell when the CAD is down somewhat. There'll still be fluctuations even if it tops out at $1.15. Chances are it won't go any higher than that unless the US economy really starts to collapse on itself. Keep an eye on real estate... if that debt-bubble bursts, it'll be time to divest USD imo.
* If you aren't already, start hosting in the US. As their dollar goes down, so does your hosting costs! 
For what it's worth, our economy has been powering along so well that even despite SARS, Mad Cow, and various illegal trade sanctions we've had yet another surplus year. The benefits of that are already being made manifest: witness today's historic agreement in big boosts for medicare.
So as much as you spite the bush regime and disdain the fiscal devastation its leaving in its wake, you can take comfort in knowing that Canada as a whole will benefit from the situation.
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nobody likes making less for the same work. after the kick in the nuts over the past year or so, this is like another kick.
who the hell pays in euros? everything is so US $ based. |
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