HFBoards

Go Back   HFBoards > General Hockey Discussion > The Business of Hockey
Mobile Hockey's Future Become a Sponsor Site Rules Support Forum vBookie Page 2
The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, NHL revenues, relocation and expansion.

OT: News Predicting Weak Canadian Dollar Will Happen

Reply
 
Thread Tools
Old
12-07-2013, 11:28 AM
  #51
Melrose Munch
Registered User
 
Melrose Munch's Avatar
 
Join Date: Mar 2007
Posts: 15,360
vCash: 500
Quote:
Originally Posted by berklon View Post
The amount of foreigners who purchase properties in Canada is over-stated. The vast majority of sales are done by people already living in this country. The real-estate cartel would like you to believe otherwise in order to create a sense of urgency and increase demand.

And this doesn't explain why housing prices are crazy in Hamilton for example. Hamilton's not exactly an economic hub, yet I've seen prices of housing have almost doubled in the last 10 years. Do you think immigrants are flocking to Hamilton? The housing bubble (and yes, it is a bubble - the fundamentals aren't there otherwise) was created by low rates and increase debt - not increased income. You can bet the vast majority of people didn't see their income increase 100% in the last 10 years, but you can bet their debt has increased substantially.

The longer the bubble takes to pop, the more pain will be felt in this country. Far too great an amount of people's paycheques (and debt) are being used to service housing costs - a lot less money can be spent on other parts of the economy.

People who think the fake value of their homes increasing is a good thing really have no clue. This is NOT a good thing.
The recession of 1991-1993 would be a child's play compared to what would happen if this bubble popped.


Remember when everyone moved to the US or UK after University?

Melrose Munch is offline   Reply With Quote
Old
12-07-2013, 11:43 AM
  #52
Shrimper
Trick or ruddy treat
 
Shrimper's Avatar
 
Join Date: Feb 2010
Location: Essex
Country: United Kingdom
Posts: 77,436
vCash: 50
Would a drop on the Canadian dollar value have an impact on the salary cap?

Shrimper is offline   Reply With Quote
Old
12-07-2013, 11:50 AM
  #53
Melrose Munch
Registered User
 
Melrose Munch's Avatar
 
Join Date: Mar 2007
Posts: 15,360
vCash: 500
Quote:
Originally Posted by Shrimper View Post
Would a drop on the Canadian dollar value have an impact on the salary cap?
Very much so. Lower Dollar = Lower Revenues = Lower Cap.

Melrose Munch is offline   Reply With Quote
Old
12-07-2013, 11:52 AM
  #54
Burke the Legend
Registered User
 
Join Date: Feb 2012
Posts: 3,493
vCash: 500
hamilton is still basically in GTA range...

Burke the Legend is offline   Reply With Quote
Old
12-07-2013, 02:58 PM
  #55
BigZ65
Registered User
 
Join Date: Feb 2010
Location: Winnipeg
Country: Canada
Posts: 4,860
vCash: 500
Quote:
Originally Posted by Melrose Munch View Post
The recession of 1991-1993 would be a child's play compared to what would happen if this bubble popped.


Remember when everyone moved to the US or UK after University?
It's actually a great situation for anyone who isn't a homeowner, like people in the 16-30 age range who haven't nailed themselves into a mortgage. Prices will take a huge dive as banks are forced to foreclose on mortgages. It will be the people who are way overextended on credit in a home purchased in the last decade or so that is probably out of their price range who will end up in big trouble. For the young people the concern will be landing a career, which are increasingly disappearing from the market as our private and financial sectors record profits never seen before and refuse to reinvest most of it back into the economy. That's a worldwide problem though, not just Canada.

BigZ65 is offline   Reply With Quote
Old
12-07-2013, 03:05 PM
  #56
mouser
Global Moderator
Business of Hockey
 
mouser's Avatar
 
Join Date: Jul 2006
Location: South Mountain
Posts: 13,015
vCash: 500
The NHL uses the averaged daily rates for the league year when converting CAD revenue into USD revenue for HRR calculations. Here are the averages from the previous league years, rounded to 2 digits.

2004-2005: 0.80
2005-2006: 0.86
2006-2007: 0.88
2007-2008: 0.99
2008-2009: 0.86
2009-2010: 0.95
2010-2011: 1.00
2011-2012: 1.00
2012-2013: 1.00

So far for 2013-2014 the average has been 0.96. However the rate has trended down over the season and if it hypothetically stayed the same as Friday's closing of 0.94 for the remainder of the season the average for the 2013-2014 league year would be 0.95. i.e. HRR would reflect a 5% drop in the valuation of CAD income season over season.

mouser is online now   Reply With Quote
Old
12-07-2013, 03:15 PM
  #57
Fugu
Administrator
HFBoards
 
Fugu's Avatar
 
Join Date: Nov 2005
Location: ϶(o)ϵ
Posts: 31,691
vCash: 500
League year is 1 July - 30 June.

Fugu is offline   Reply With Quote
Reply

Forum Jump


Bookmarks

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 01:19 PM.

monitoring_string = "e4251c93e2ba248d29da988d93bf5144"
Contact Us - HFBoards - Archive - Privacy Statement - Terms of Use - Advertise - Top - AdChoices

vBulletin Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
HFBoards.com is a property of CraveOnline Media, LLC, an Evolve Media, LLC company. 2015 All Rights Reserved.