• Knave Dave
    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

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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Tue, 01/12/2016 - 13:00 | 7035172 Durrmockracy
Durrmockracy's picture

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

Tue, 01/12/2016 - 13:03 | 7035190 38BWD22
38BWD22's picture

 

 

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

Bad timing!

Tue, 01/12/2016 - 13:21 | 7035325 Mr.Sono
Mr.Sono's picture

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

Tue, 01/12/2016 - 13:54 | 7035541 Vincent.Vega
Vincent.Vega's picture

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

Tue, 01/12/2016 - 14:30 | 7035777 StackShinyStuff
StackShinyStuff's picture

Lap dances in Montreal are on sale

Tue, 01/12/2016 - 15:01 | 7035936 Bloppy
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.

Tue, 01/12/2016 - 16:11 | 7036304 robertocarlos
robertocarlos's picture

Take me next time.

Tue, 01/12/2016 - 16:09 | 7036295 asteroids
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.

Tue, 01/12/2016 - 13:35 | 7035435 northern vigor
northern vigor's picture

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

Tue, 01/12/2016 - 13:54 | 7035540 I-am-not-one-of-them
I-am-not-one-of-them's picture

tell us why so we can laugh at you

Tue, 01/12/2016 - 14:15 | 7035701 dontgoforit
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?

Tue, 01/12/2016 - 17:14 | 7036590 Vincent.Vega
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

Tue, 01/12/2016 - 13:43 | 7035471 ATM
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. 

Tue, 01/12/2016 - 13:52 | 7035517 foodstampbarry
foodstampbarry's picture

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

Tue, 01/12/2016 - 16:11 | 7036305 asteroids
asteroids's picture

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

Tue, 01/12/2016 - 22:18 | 7038280 FIAT CON
FIAT CON's picture

Perhaps, but without the POTUS

Tue, 01/12/2016 - 13:00 | 7035174 arbwhore
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.

Tue, 01/12/2016 - 13:31 | 7035410 Bay of Pigs
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).

Tue, 01/12/2016 - 14:40 | 7035829 Kayman
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.

Tue, 01/12/2016 - 14:41 | 7035836 Gregor Samsa
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.

Tue, 01/12/2016 - 17:07 | 7036647 Abbie Normal
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.

Tue, 01/12/2016 - 17:14 | 7036714 Bay of Pigs
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.

Tue, 01/12/2016 - 13:00 | 7035175 Squid Viscous
Squid Viscous's picture

a good time for a strip club tour of Montreal

Tue, 01/12/2016 - 13:06 | 7035206 Buckaroo Banzai
Buckaroo Banzai's picture

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

Tue, 01/12/2016 - 13:21 | 7035320 rightwingterrorist
rightwingterrorist's picture

Close.

St. Catherines.

Just across the river from Buffalo, NY.

Tue, 01/12/2016 - 14:23 | 7035747 zerotohero
zerotohero's picture

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

Tue, 01/12/2016 - 13:37 | 7035448 Niall Of The Ni...
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.

Tue, 01/12/2016 - 13:53 | 7035535 balz
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.

Tue, 01/12/2016 - 14:31 | 7035783 StackShinyStuff
StackShinyStuff's picture

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

Tue, 01/12/2016 - 13:58 | 7035560 I-am-not-one-of-them
I-am-not-one-of-them's picture

American Exceptionalism on display, you are an exceptional asshole

Tue, 01/12/2016 - 15:28 | 7036075 besnook
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.

Tue, 01/12/2016 - 13:01 | 7035180 MountainsRoam
MountainsRoam's picture

British Columbia is starting to sound really nice!

Tue, 01/12/2016 - 13:25 | 7035356 Niall Of The Ni...
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.

Tue, 01/12/2016 - 15:04 | 7035949 TRM
TRM's picture

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

Tue, 01/12/2016 - 13:01 | 7035182 Fish Gone Bad
Fish Gone Bad's picture

There is plenty of ugly and scary ahead.

Tue, 01/12/2016 - 13:07 | 7035209 arbwhore
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.

Tue, 01/12/2016 - 13:14 | 7035272 FrankDrakman
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!

Tue, 01/12/2016 - 13:45 | 7035483 newmacroman
newmacroman's picture

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

Happy trails.

Tue, 01/12/2016 - 17:18 | 7036768 Abbie Normal
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.

Tue, 01/12/2016 - 22:24 | 7038316 FIAT CON
FIAT CON's picture

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

Tue, 01/12/2016 - 13:39 | 7035451 Bay of Pigs
Bay of Pigs's picture

Tourism will not save the country. Get a grip.

Tue, 01/12/2016 - 13:07 | 7035216 two hoots
two hoots's picture

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

Tue, 01/12/2016 - 13:09 | 7035234 Make_Mine_A_Double
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.

Tue, 01/12/2016 - 13:12 | 7035255 Abitcoinbrain
Abitcoinbrain's picture

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

 

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

Tue, 01/12/2016 - 13:26 | 7035366 Mark Mywords
Mark Mywords's picture

Oil mixes well with rum.

Tue, 01/12/2016 - 19:01 | 7037414 August
August's picture

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

Tue, 01/12/2016 - 13:15 | 7035279 JustObserving
JustObserving's picture

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

Tue, 01/12/2016 - 13:24 | 7035351 Mr.Sono
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

Tue, 01/12/2016 - 14:51 | 7035815 Abitcoinbrain
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!!!

Tue, 01/12/2016 - 15:30 | 7035922 Catch-22
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.

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