Recession

[Gainzo]

A lot of chinese manufacturers I know had that problem, They quote in US dollars and it is a good 6 months out from quote to final payment. A lot of them aren't sophisticated to play the currency market to hedge. Doesn't your firm use the currency market to guard against this?

We would love to do that but we can't as we process 30,000 credit card transactions a year. Each transaction is processed when it is submitted.

BTW: My Company makes a business simulation that is used in Colleges. The students pay us directly.

Edit: Starting in January all purchases are processed here. We send money to New Zealand when the exchange rate is favourable*

*Thats a joke isn't it?

[Jet Moses]

cutting interest rates and taxes and the price of gas is going through the roof.

I cashed out my stocks and mutual funds over a year ago. I knew it was coming and I am very happy I cashed out when I did b/c the stock market is going down the toilet.

You're 20 years old and you have/had a portfolio?

Please tell me it was a retirement fund so I can give you a Bronx cheer.

[joebabyny]

We would love to do that but we can't as we process 30,000 credit card transactions a year. Each transaction is processed when it is submitted.

BTW: My Company makes a business simulation that is used in Colleges. The students pay us directly.

Edit: Starting in January all purchases are processed here. We send money to New Zealand when the exchange rate is favourable*

*Thats a joke isn't it?

Well, it shouldn't matter how many individual transactions you do, what you do is play the currency futures market to guard against big moves in either currency. There is a cost associated with doing this, but it is less than what you could get hit with a big move, this way you lock in your profit margins so to speak. On average you do ex amount of business a month or quarter, you go into the currency futures market to buy or sell the a currency at a specified price, so that if the exchange rate goes south, you hedge by having a contract to buy or sell the currency at a different price, you make up for your loss with what you make in the currency market. I assume if you google around you can find a better explanation.

[Alk]

did u just shiit on alk??

so are u saying u want them to be hurting just like you?

If recession isnt bothering them why is that bad??

maybe the trailer people arent getting BMWs and season tickets etc..

He's just being a hater.

[DHJF]

I can't beleive the dying dollar isn't a bigger issue than it is. I guess all these nimrods who live in the flyover states could care less b/c half of them have never even been outside of their trailer parks let alone outside of the US.

The main reason the dollar is shrinking so fast is because we keep printing it to pay our debts.

[DHJF]

Besides, the ethanol solution leads to its own problems, ask any pizzaria about that. One of those giant sacks of flour they use has gone from 4 bucks to 27, mostly because farmers are switching to corn for ethanol. Mass adoption of ethanol will lead to other financial problems, it is not that great of a solution.

Hogwash

http://www.latimes.com/business/la-fi-corn1apr01,1,4279347.story

[Gainzo]

The main reason the dollar is shrinking so fast is because we keep printing it to pay our debts.

And the Treasury takes a loss for every penny they produce.

Smizzy has led the charge before: Get rid of the penny as it's farkin useless!

[DHJF]

And the Treasury takes a loss for every penny they produce.

Smizzy has led the charge before: Get rid of the penny as it's farkin useless!

100% correct. You get a gold star!

[mangenious420]

I can't beleive the dying dollar isn't a bigger issue than it is. I guess all these nimrods who live in the flyover states could care less b/c half of them have never even been outside of their trailer parks let alone outside of the US.

That's not very nice man.

[joebabyny]

Hogwash

http://www.latimes.com/business/la-fi-corn1apr01,1,4279347.story

Hogwash? Maybe you should have read the full story

"The decline in the amount of farmland that will be devoted to growing corn this year will worsen the effect of "food-to-fuel mandates which are resulting in massive increases in food prices," Faber said."

"Despite the decrease, corn acreage is expected to remain at historically high levels as the corn price outlook remains strong due in part to the continued expansion in ethanol production," the USDA said in its report."

That was the point i was making, ethanol is not the magic answer, it has its own far reaching economic impacts as well.

further reading

[joebabyny]

Hogwash? Maybe you should have read the full story

"The decline in the amount of farmland that will be devoted to growing corn this year will worsen the effect of "food-to-fuel mandates which are resulting in massive increases in food prices," Faber said."

"Despite the decrease, corn acreage is expected to remain at historically high levels as the corn price outlook remains strong due in part to the continued expansion in ethanol production," the USDA said in its report."

That was the point i was making, ethanol is not the magic answer, it has its own far reaching economic impacts as well.

further reading

And what happens if this food-to-fuel thing really gains steam? Imagine the debates as all of a sudden vast amounts of food stocks dwindle and people start crying about how the greedy "Big Fuel" farmers aren't planting enough to feed the world's hungry because they are more concerned with growing crops for fuel. And the price increase to corn will not be just affecting actual corn to the consumer, but a whole wide range of products that use the crop.

[Gainzo]

And what happens if this food-to-fuel thing really gains steam? Imagine the debates as all of a sudden vast amounts of food stocks dwindle and people start crying about how the greedy "Big Fuel" farmers aren't planting enough to feed the world's hungry because they are more concerned with growing crops for fuel. And the price increase to corn will not be just affecting actual corn to the consumer, but a whole wide range of products that use the crop.

There has been a surplus of "food" in this Country for the last 30 years. Why has the goverment been handing out money to farmers since the 70s?

There will never be a shortage of corn, wheat, or any other crop here. Unless those things are imported (like they are now).

[joebabyny]

There has been a surplus of "food" in this Country for the last 30 years. Why has the goverment been handing out money to farmers since the 70s?

There will never be a shortage of corn, wheat, or any other crop here. Unless those things are imported (like they are now).

well, if the food-to-fuel idea really sinks in then you have another use for the crops other than consumption. IF it turns out that farmers can make more by selling it to ethanol refineries than as a food product than what do you think will happen? You can't use the last 30 years as proof that this would not be a problem, there was never an alternative use for corn like there is now.

[Gainzo]

well, if the food-to-fuel idea really sinks in then you have another use for the crops other than consumption. IF it turns out that farmers can make more by selling it to ethanol refineries than as a food product than what do you think will happen? You can't use the last 30 years as proof that this would not be a problem, there was never an alternative use for corn like there is now.

I'm not sure what planet you live on but with the global economy we get most of our produce from overseas. At the same time American farmers are producing crops at record levels. Sadly, most of those crops are thrown away.

[Bugeater]

We need to start getting into Ethanol E-85 fuel in a big way. Brazil is already doing it with the flex cars.

The false hope of ethanol has pretty much been covered in this thread already, but I would like to point out the reason Brazil gets away with it is because they have a climate suitable to growing sugar cane, and it's far more efficient than corn to produce ethanol from. It's not an option for us.

[Jet Moses]

The false hope of ethanol has pretty much been covered in this thread already, but I would like to point out the reason Brazil gets away with it is because they have a climate suitable to growing sugar cane, and it's far more efficient than corn to produce ethanol from. It's not an option for us.

It seems Holden Caulfield has it all figured out. He's twenty years old, has lived with his parents his entire life (and still does) but he knows everything about everything. He's a sophisticated man about town.

[uart]

We need to start getting into Ethanol E-85 fuel in a big way. Brazil is already doing it with the flex cars.

Incorrect. We need to kill the subsidies.

Brazil makes their ethanol from Sugar Cane. We make ours from CORN. Sugar Cane is far more efficient.

[RSJ]

Well, it shouldn't matter how many individual transactions you do, what you do is play the currency futures market to guard against big moves in either currency. There is a cost associated with doing this, but it is less than what you could get hit with a big move, this way you lock in your profit margins so to speak. On average you do ex amount of business a month or quarter, you go into the currency futures market to buy or sell the a currency at a specified price, so that if the exchange rate goes south, you hedge by having a contract to buy or sell the currency at a different price, you make up for your loss with what you make in the currency market. I assume if you google around you can find a better explanation.

You can also get into an international cash pool. This will convert dollars to another currency overnight or visa versa. Hedging currency is not exactly a safe business either. Besides what are you hedging it against? Other currencies? That is a dangerous game if you don't know what you are doing and even if you do it is dangerous.

[RSJ]

I see a lot of problems with our economy's overall health with or without technically being in a recession right now. I honestly think the government should do something with the rail system in this country. The same way the US built the highway system to help us get out of the depression, they should do with our Rail system. If they are incapable of doing this then they should sell it to a private enterprise that can. The problem the gov't would have is the power of the truckers unions. The key to any healthy economy is a good infrastructure and ours sucks. Our rail system is incapable of getting goods across country at a consistent and economical way and really if we took all of the trucks off of our major highways it would allow people to work farther distances away (opening up more options) and vacation more often. Oh and it would bring down gas prices which would allow people to spend more. I'm still for alternative fuel investment and eventually the trucking industry could build back up because of that evolvement. Truckers wouldn't totally get screwed as there would still be local trucks. But hey it is an evolving world and we all must adapt. There is more - but that is all for now.

[Sperm Edwards]

I see a lot of problems with our economy's overall health with or without technically being in a recession right now. I honestly think the government should do something with the rail system in this country. The same way the US built the highway system to help us get out of the depression, they should do with our Rail system. If they are incapable of doing this then they should sell it to a private enterprise that can. The problem the gov't would have is the power of the truckers unions. The key to any healthy economy is a good infrastructure and ours sucks. Our rail system is incapable of getting goods across country at a consistent and economical way and really if we took all of the trucks off of our major highways it would allow people to work farther distances away (opening up more options) and vacation more often. Oh and it would bring down gas prices which would allow people to spend more. I'm still for alternative fuel investment and eventually the trucking industry could build back up because of that evolvement. Truckers wouldn't totally get screwed as there would still be local trucks. But hey it is an evolving world and we all must adapt. There is more - but that is all for now.

That's dumb. They should just fast-track inventing the transporter room. Duh. You guys are all idiots.

Anyone else want advice on how to cure all that ails our society send PM to faba@jetnation.com. That's where I get most of this stuff from.

[Thai Jet]

Thanks. I'm not depressed enough. I don't want to be a mod, so why does everybody keep ****ing me in the ass?

[Thai Jet]

We need to start getting into Ethanol E-85 fuel in a big way. Brazil is already doing it with the flex cars.

Sorry but this is WRONG !! Brazil's ethanol is produced from sugar beets which yields about 10 times the ethanol as does corn. Are you also aware that the avg. flex fuel car that gets 24 mpg highway on gas only gets 17 mpg highway on E85 ? Check it out at the EPS gas mileage site. Are you aware of how much energy it takes to actually produce E85? Don't forget to figure in the fuel it takes for the combines to actually harvest the corn etc. There's only a very little more energy produced than is actually used. I think it's 15 % more. Hardly worth it when you consider the increased in corn prices which lead to an increase in food prices. Meat, dairy products all are costing more since the feed (corn) for the cattle has increased dramatically.

[Arsis]

We need to figure out a way to have cars run on nuklear energy.

[Bugeater]

We need to figure out a way to have cars run on nuklear energy.

It's nukular, dummy.

[Thai Jet]

It's nukular, dummy.

You've got the midwest spelling. Out here in NY it's spelled nuklear because of the many Lear Jets here.

[Bugeater]

[Thai Jet]

e85 is still mostly gasoline. there isnt a huge difference in it. ive been to brasil a few times, ask tem about how reliable it is

the reality is, every home should be green, efficient with solar panels and a windmill. electricity only used when reserves are low. im sure lots of people will laugh at this but there is a ton of free energy that can be harvested if you wanted to.

i have a solar panel on my boat. its tiny and cheap and guess what for the last 3 years every time i go the battery is fully charged and the radio cranks......

FYI : Dick, E85 is 85 % ethanol and 15 % gasoline not the other way around.

[Thai Jet]

Is this made by the same company that made "Mr. Radar" on the movie Spaceballs ? Just askin......

[Barton]

Hydrogen fuel cell technology.

[Jetlag]

Our dollar is worth sh*t because like someone else pointed out we use it to pay our own debt but we don't back it with anything, instead just print it out of thin air. Remember that hackneyed line about wishing you had a money tree? Well this would be a case of being careful what you wish for.

BTW the federal reserve is a joke and those fools need to go. Can we please get back to backing our money with something like, I don't know, gold? Instead these cornholes regulate the money supply according to future assumptions they're typically wrong about. It's completely unconstitutional and a load of bull dukie.

Only if there was a politician who would have made strives to make this happen...

[JonEJet]

I own a mortgage company

If you don't think housing and building is not the backbone of our country, then ask your local concrete guy, your local carpenter, your local tile guy

Problem in the mortgage business is that the government is now getting involved

People want to buy homes, 2nd homes, investment homes, but can't because Wall Street money isn't there anymore. The avenues for funding are gone

Until Wall Street believes that the market has bottomed, we will remain in this recession.

[RSJ]

I own a mortgage company

If you don't think housing and building is not the backbone of our country, then ask your local concrete guy, your local carpenter, your local tile guy

Problem in the mortgage business is that the government is now getting involved

People want to buy homes, 2nd homes, investment homes, but can't because Wall Street money isn't there anymore. The avenues for funding are gone

Until Wall Street believes that the market has bottomed, we will remain in this recession.

Housing is just one sector of the economy. Housing does not need to be strong to have a good economy.

[PeterNorth09]

Our dollar is worth sh*t because like someone else pointed out we use it to pay our own debt but we don't back it with anything, instead just print it out of thin air. Remember that hackneyed line about wishing you had a money tree? Well this would be a case of being careful what you wish for.

BTW the federal reserve is a joke and those fools need to go. Can we please get back to backing our money with something like, I don't know, gold? Instead these cornholes regulate the money supply according to future assumptions they're typically wrong about. It's completely unconstitutional and a load of bull dukie.

Only if there was a politician who would have made strives to make this happen...

Whose fault is it that we are in so much debt? Which group of people is obsessed with cuttting taxes and cutting interest rates?

I agree with your point about backing our currency with gold but there is no need for all this ridiculous debt in the first place.

[RSJ]

Our dollar is worth sh*t because like someone else pointed out we use it to pay our own debt but we don't back it with anything, instead just print it out of thin air. Remember that hackneyed line about wishing you had a money tree? Well this would be a case of being careful what you wish for.

BTW the federal reserve is a joke and those fools need to go. Can we please get back to backing our money with something like, I don't know, gold? Instead these cornholes regulate the money supply according to future assumptions they're typically wrong about. It's completely unconstitutional and a load of bull dukie.

Only if there was a politician who would have made strives to make this happen...

I agree, printing money to get us out of a recession does not always work. Debt is not always a bad thing though.

[nyjetsjetsjets]

e85 is still mostly gasoline. there isnt a huge difference in it. ive been to brasil a few times, ask tem about how reliable it is

the reality is, every home should be green, efficient with solar panels and a windmill. electricity only used when reserves are low. im sure lots of people will laugh at this but there is a ton of free energy that can be harvested if you wanted to.

i have a solar panel on my boat. its tiny and cheap and guess what for the last 3 years every time i go the battery is fully charged and the radio cranks......

wind mills are not all that green, especially the large ones, they are actually not good for the environment at all. small ones are better, but they still aren't "environmentally friendly" as e85 isn't either.

solar panels though, i believe are the way to go.