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Old
10-26-2004, 11:12 PM
  #26
EaGLE1
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Quote:
Originally Posted by Mooch
This may be food for the Canadian teams, but man is this ever gona hit us hard as an economy. Trading may eventually stop with the us, inflation will rise, probably not hyperinflation, but inflation non the less, that will eventually bloom into a recession.......This is all normal however for a growing economy. You have to go through a recession to increase on a large scale. Look at Japan for example, after their recession, there economy is booming like nuts......

Anyways, enjoy purchasing products from the us while the exchange rate is low......
I'm currently purchasing performance auto parts from the US.

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10-26-2004, 11:24 PM
  #27
hosehead
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I've read that the Toronto Blue Jays periodically purchase US dollars to be used to pay salaries, I'd assume the Habs do the same thing -- I guess if their timing is right they can maximize their bang for their buck (looney). Any one know if thats what the Habs do?
Also the Jays have recently mentioned that the higher Canadian dollar contributed to lower financial losses. Hopefully the Canadian NHL teams can benefit from this current run up in the dollar --- geez maybe players will agree to be paid in Canadian dollars !!!

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10-26-2004, 11:39 PM
  #28
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Quote:
Originally Posted by hosehead
I've read that the Toronto Blue Jays periodically purchase US dollars to be used to pay salaries, I'd assume the Habs do the same thing -- I guess if their timing is right they can maximize their bang for their buck (looney). Any one know if thats what the Habs do?
Also the Jays have recently mentioned that the higher Canadian dollar contributed to lower financial losses. Hopefully the Canadian NHL teams can benefit from this current run up in the dollar --- geez maybe players will agree to be paid in Canadian dollars !!!
What salaries? Gainey's and Julien's? I'd hold off on purchases of US$ until it looks as though the players might come back. In the meantime, I look for the US$ to sink lower.

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Old
10-27-2004, 09:31 AM
  #29
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Originally Posted by Machiavelli
Freebooter, I agree with what you said completely except I would add one other factor, the budget deficit. The U.S. deficit, combined with Canada's lack thereof, is another factor to throw in the mix.
That is a good point, although I would say that the U.S. deficit harms the U.S. dollar more than the lack of a (Federal) budget deficit helps the Canadian dollar. The long term interest rate trends resulting from their huge debt in the U.S. will eventually harm both currencies though.

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Old
10-27-2004, 10:51 AM
  #30
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Originally Posted by montreal
What your missing is that in the business world when dealing with outside currency, you would likley purchase currency options or futures contracts to offset the currency risk (rising or falling currency) or try and lock in a risk free rate (which is done in theory only) If you get say 1000 US currency option contracts, this will lower your risk if your a Canadien team earning Canadien dolllars but paying salaries in the US dollar. I'm not saying the Habs finance department does this cause I don't know what they do, but I spent 5 years getting a degree in Finance and I trade stock options for a side business.
The Habs in the past have stated that they do just that, in fact all Canadian teams do. I just made a oversimplified reference to it in my comments as "hedging" so that it wouldn't trigger any university flashbacks for you.

If the Habs purchase US options once play resumes at a much better rate than when they last had to do it...it's good for George's bottom line.

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Old
10-27-2004, 11:02 AM
  #31
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Quote:
Originally Posted by Habs
You have to pay more tax when you trade the US money to Canadian. Its considered a capital gain. By adjusting the Canadian dollar through corporate taxes, you pay much less.

Gillette can write off a percentage of the players' salaries, with respect to the difference in currency prices.

Simply put :

Its cheaper to take the hit on the employee dollar difference when the loonie is sagging, than to trade currency.
Where did you get this info. None of my university classes says this is any way correct. Trading currency at the right time can save millions to a big company that operates in different countries.

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Old
10-27-2004, 12:55 PM
  #32
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Quote:
Originally Posted by Beakermania
Where did you get this info. None of my university classes says this is any way correct. Trading currency at the right time can save millions to a big company that operates in different countries.
I'm not debating it cannot be an excellent financial tool. I just don't see Gillette having hundreds of thousands of cash, ready to burn, in the Canadien's savings account.

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Old
10-27-2004, 01:07 PM
  #33
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Originally Posted by Habs
I'm not debating it cannot be an excellent financial tool. I just don't see Gillette having hundreds of thousands of cash, ready to burn, in the Canadien's savings account.
Okay, now i understand what you are saying is that he would have to borrow the money to buy the U.S. dollars causing it to be a capital gain.

I'm sure there is some money there to buy U.S dollars though, and i'm sure they are doing what is best for the financials at this high point for our dollar (or more accurately low point for the U.S)

Do you think the U.S. currency will rebound some if Kerry wins the election?? or drop more if Bush wins?? I mean analysts can't have confidence in Bush's economic policies that has lost jobs and caused massive deficits.

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Old
10-27-2004, 05:09 PM
  #34
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Quote:
Originally Posted by Beakermania
Okay, now i understand what you are saying is that he would have to borrow the money to buy the U.S. dollars causing it to be a capital gain.

I'm sure there is some money there to buy U.S dollars though, and i'm sure they are doing what is best for the financials at this high point for our dollar (or more accurately low point for the U.S)

Do you think the U.S. currency will rebound some if Kerry wins the election?? or drop more if Bush wins?? I mean analysts can't have confidence in Bush's economic policies that has lost jobs and caused massive deficits.
I think the u.s $ will rebound, somewhat. However, Kerry will be suffering from Bush's fiscal policies for some time, if he does indeed win.

On a side note, I do wonder how healthy Gillette's finances are at this point. His holding company has some real dud's in place.

It will be interesting to see how his ski resorts perform, with the anticipated dryer winter upcoming!


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Old
10-27-2004, 05:36 PM
  #35
loadie
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Quote:
Originally Posted by Habs
It will be interesting to see how his ski resorts perform, with the anticipated dryer winter upcoming!

If he has one in Edmonton area he should be fine, were already under a foot of snow.

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Old
10-27-2004, 05:40 PM
  #36
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Quote:
Originally Posted by loadie
If he has one in Edmonton area he should be fine, were already under a foot of snow.

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