Loonie Lurches To 13 Year Lows As Crude Nears '2' Handle

Tyler Durden's picture

Today's renewed plunge in WTI Crude (on the verge of a '2' handle any second) has extended the Canadian Dollar's weakness (among many other oil producers). For the first time since early 2003, the Loonie is worth less than 70c... (anyone for skiing?)

 

 

This can only serve to worsen the death of the Albert Dream, and all the societal depressions that is bringing with it.

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Durrmockracy's picture

60 cent or 75 cent loonie?  Who cares... in the end what is 60% or 75% of ZERO?

38BWD22's picture

 

 

We spent a month in Montreal in June 2012.  The looney was almost exactly $1.00 US.

Bad timing!

Mr.Sono's picture

How low will it go? Under.50 is my guess

Vincent.Vega's picture

In the past 20 years it has never been lower than .62 and that was in around 2002-2003.

StackShinyStuff's picture

Lap dances in Montreal are on sale

Bloppy's picture

When it hit .62 we were loading up with whatever crap we could stuff in the trunk and driving it back over the US border.

asteroids's picture

In the 1980's it fell to almost .50 It will do so again. The Bank of Canada is even more screwed than the FED. A perfect storm has arrived in Canada. As long as interest rates are low, the price of an average house in Canada will rise. In order for average (house) prices in Canada and the US to be the same, the Looney will continue to fall in value. If you are a Canadian bank, you are praying for another housing crash in the US. I converted all my Loonies to US peso's a long time ago. Someone pass me the popcorn.

northern vigor's picture

I spent a day in Montreal in 2012...seemed like a month.

dontgoforit's picture

Montreal is a beautiful city.  Took my family there one time and we had a great time.  We also went to the other end of the country, Victoria and Vancouver - also had a great time.  Canada is a beautiful country and the folks are really great.  How the politics are is not good, but how the politics everywhere is, is not good, right?

Vincent.Vega's picture

The main problem with Canada is that it had been taken over by ZOG and is now a land for ZOG experiments.

 

Menorahs are all over the place and Christmas trees were replaced with pyramids.

 

Roosh V, Toronto Sucks: https://youtube.com/watch?v=FoS8bA_Tb8E

ATM's picture

No shit. I was in the city of Quebec at the same time and Toronto as well. Now I might think about buying some property in Ontario with the rates changing. 

foodstampbarry's picture

Why? Whatever you save, they'll find a way to tax the shit out of it.

asteroids's picture

Jesus in heaven NO. The Ontario and Quebec governments are broke. Think of this as Kalifornia of the North.

FIAT CON's picture

Perhaps, but without the POTUS

arbwhore's picture

CAD winning the currency war. Low oil isn't great for Alberta but a low loonie is great for the majority of Canada. Tourism revenue is hitting records.

Bay of Pigs's picture

That is complete nonsense. Alberta is imploding, and so is the Canadian economy (led by oil and gas revenues). Almost everything they import is from the USA and costing them much more now (real inflation). Exports from Ontario are not going up and I wont even mention where the housing bubble is going.

Americans going up to Whistler to ski wont mean anything in the bigger picture (tourism).

Kayman's picture

Mining is done too.  By the way, WCS (Western Canada Select) a blend of Tar Sands, conventional oil and dilbit was around $16USD/ Barrel and falling.

Gregor Samsa's picture

Low dollar is actually great for Alberta.  If it wasn't for a low dollar, Alberta would be lights out already, but the exhange rate means that their $20 oil (or whatever the sludge sells for today) actually sells for $30 Canadian. When each drop in oil is accompanied by a drop in the CAD, it helps soften the blow for the oil corporations.

Abbie Normal's picture

So U$16 WCS oil is worth C$23 -- how does that help the tar sand oil producer who pays C$80 to extract it?  It's like putting a bandage on an arterial bleed.

Bay of Pigs's picture

Soften the blow? You guys are unbelievable. A "lower dollar" is one thing, a 75%+ oil price "collapse" is quite another. They cannot make any money at these levels ($30 bucks). What part of that simple math don't you get?

Alberta is heading for financial disaster, and the new NDP will only make it worse. Everything they touch goes to shit.

Squid Viscous's picture

a good time for a strip club tour of Montreal

Buckaroo Banzai's picture

My understanding is, the best ones are in Niagara Falls.

rightwingterrorist's picture

Close.

St. Catherines.

Just across the river from Buffalo, NY.

zerotohero's picture

Its true - I lived in St. Kitts most of my life - friend of mines family owned 3 strip clubs back then

Niall Of The Nine Hostages's picture

Bah. Montreal's really overrated. French Canadian women are easily the ugliest white women in North America. Inbred like you wouldn't believe. Last time anyone stirred up that gene pool was an influx of Irish women (the ugliest white women in Europe) fleeing the potato famine. If that sort of thing tickles your fancy, try the single moms at your local trailer park. Even at CADUSD < 0.70 it'll be a lot cheaper. 

A self-pitying French Canadian once called his people "America's white Negros." He had a point. The women have the fugliness and bad attitudes down, that's for sure.

balz's picture

What a racist and disgusting comment... Not to mention completely false. Everyone know Montreal probably has the most beautiful women in North America.

StackShinyStuff's picture

Yep - the best are of the eastern European variety...

I-am-not-one-of-them's picture

American Exceptionalism on display, you are an exceptional asshole

besnook's picture

french canadians are the scourge of the service industry in the usa, from their second home in florida all the way back to the border along the eastern seaboard. it is like the people from ontario came from a different country.

having said that, montreal is a great city and the people don't seem like the ones who visit the usa.

MountainsRoam's picture

British Columbia is starting to sound really nice!

Niall Of The Nine Hostages's picture

You're not the only one to think so. That's why every oligarch in China has at least a second home in VanBC. 

They may be needing them soon.

TRM's picture

And just wait for the legal pot industry to kick in this summer!!!

Fish Gone Bad's picture

There is plenty of ugly and scary ahead.

arbwhore's picture

BTW, good luck getting a room at Whistler... and if you do, don't expect much of a discount. Most resorts that catter to Americans have hiked their prices by a huge margin obliterating most of the loonie's fall.

FrankDrakman's picture

From Toronto. Been to Whister 3 times. Every time, same thing: top of mountain, blue sky, glorious sunshine. Ski down 1,000 ft - thick clouds so you can barely see where you're going. Ski down another 1,500 ft - rain. 

Going to Big White in Feb. Hope it's better!

newmacroman's picture

Ah, Frank, hate to tell you this, Big White is known alternately as Big Fog or Big White out.

Happy trails.

Abbie Normal's picture

Or consider Banff/Lake Louise for deep powder, beautiful blue skies and crisp clean air -- as long as you don't mind the -20C temperatures.  Be sure to bring along your own ski bunny for the apres-ski activities in the lodge.

FIAT CON's picture

It's so foggy you cannot focus on the ground you are skiing on 

Bay of Pigs's picture

Tourism will not save the country. Get a grip.

two hoots's picture

The looney to $ cuts a good chunk out of dividends.

Make_Mine_A_Double's picture

Wow, haven't seen exchange rates this in 20 years. BC and VAN are wonderful and just a couple hours drive from Seattle.

Come late summer I'll be there. Absolutely glorious in the PNW comes August/Sept/Early October.

Abitcoinbrain's picture

There is no Floor....Oil has no instrinsic Value.....

 

At 9$ oil we have you will see 1.75 USD CAD

August's picture

And the last half of July is not too bad either. Sometimes.

JustObserving's picture

When the great Canadian real estate bubble bursts, the loonie will hit 60 cents to the dollar.

Mr.Sono's picture

The question is when? Real estate is collapsing in dollar terms, 30% so far. But people don't see it that way. New all time high prices still there

Abitcoinbrain's picture

In this case you will see a correction in real estate maybe 18 months after the blood began. Most people do not foreclose on their home or panic sell near the peak of the boom. Its very very very hard for these people to understand or realize that property can go down and they paid way too much for that house. You would need to loose your job, max credit cards out burn through savings and finish EI before your ready to hand those keys back over the bank. Once your neighbour does it and you see he is fine 6 months later you will do it too.... Hence when renewal comes up and wait your house is worth less than you owe and the bank is going to ask for more cash down to secure your mortgage. You qualified for that million dollar infill on a salary you will never make again, bonuses that will not be paid again, and stock values that have lost 90%.... The Canadian government put in the over 500k 10% down rule so once inflation hits hard from the low canadian dollar and interest rates have to go up to cover that inflation the market is destroyed and resets back to 2002 ! It's coming and the writing is on the wall...

 

If you made 250 k year in the boom and only make 60k now that mortgage is a JUNK BOND that cannot ever be expected to be paid !!!! 4000 - 5000 a month mortgage payment is nothing when your take home is 16-20k

then reduced to 60k year take home your ratio goes from 20% to 100% 

High property value is good for Municiple Tax base, Mortgage Lenders, Reno and contruction, Realtors, Home Inspectors and allow insurance companies to charge outrageous rates.

Lots of people depend on keeping the bubble inflated!!!

Catch-22's picture

You are right Mr. Sono, apples to (world) apples, they are going down... FAST.

Proceeds from a sale in Toronto that would have bought you a three bedroom on the ocean in say Fort Lauderdale three years ago, will only get you a two bedroom now... and that market hasn't moved at all.