euro

What does it do to U.S. Exports?

Julia, if the US dollar gets more expensive for foreigners with Euros to spend, what do you think are the affects the currency moves may have on our markets:

1. for buyers?
2. for foreign owners of Manhattan real estate?

Why does everyone answer julia's question with more questions?

why not, lost does it

It's not something that can really be answered. First you'd have to agree the two were correlated.. and I'm not sure there is a relationship, let alone a strong one.

I think on a macro level its bad becuase it just adds to the pile of economic uncertainty. On a micro level, you could see european investors sell RE investments becuase the the monthly carry becomes much greater if they have to pay in $$.

inonada..thank you..it appears that some posters don't acknowledge my intelligence...what it really means is my life does not revolve around sitting in front of a laptop or real estate.

'lost does it'. Now thatz funny.

Julia, the euro tanking is significant for nycers.
1) all the euros buyers with dollar debt need to work harder to service such debt;
2) future euro buyers will now have to account for fx risk, doubt any of them even hedged this exposure much less even thought about it in the past 4 yrs as it worked in their favor;
3) the Chinese buyers of NYC re which made most of their money on exports have seen their price competitiveness decrease as euro and dollar have fallen, meaning they are gonna be in a less spendy mood;
4) rich Americans can now work their currency in their favor to buy foreign goods, including a French villa versus a euro trash owning 200 rsb $1500psf pretend a 'owner'.

Excellent time to be cash in dolllars. The credit that was is being contracted, and rightfully so. 1% on savings is unnatural and is a govt way to spur spending and take care of debt holders, which were the exact policy decisions which led us to housing bubble and global trade imbalances all around. The next 10 yrs will be the years of the 'sacers', the mkt is forcing the issue first with Greece now the world.

How will all those Europeans be able to come to New York and but all the excess RE.

How will our market survive?

It's Doomsday I tell you!

Ohhh, and that scratchy low grade TP is really bugging my ass.

Back when the Dollar/Eur conversion was 1.5/1, a $1.5 million property would cost EUR 1 million, now with the conversion rate aroung 1.23/1, that same property cost EUR 1.22 million. Therefore, you would think the devaluing of the Euro would to some extent, decrease the number of foreign purchasers.

"why not, lost does it"

LOL, the true brilliance of the show. The end will no doubt disappoint.

w67thstreet...you're the best..thst's the info i was lookong for

Euro strength or weakness is really a symptom of the lack of visibility on credit risk both sovereign and company specific. This is leading to a greater risk premium for loans for all types of things but specifically how banks lend to eac other, 'libor' which our system uses to set mortgage rates and resets. Terrible terrible time to have debt in a deflationary period. Hope all you lemmings paid off your debt.

i can sum up this way:

1. It makes prospective EURO buyers purchasing power DECLINE noticeably, as the dollar is now more expensive
2. It incentivizes current euro foreign owners to sell to take advantage of rise in their dollar based asset

In fact, foreigners who bought in all cash with their EUROS at peak can likely now cancel out any losses on their asset from the appreciation of the dollar alone! Thats quite an incentive dont you think for those that fit in that group?

You bought at 1.5m near peak, the asset declined 15%, and you can sell now if fx stays where it is and likely not even see a loss!