GBP crisis...yawn
 

Its down to 2.13 again. Looks like its going well south for our NZ winter!!!! I am really getting spooked now and am tempted to convince Kate to take a hit on her UK money and get it over (earning some real interest) here to NZ now before it goes south of 2 to 1.

What do the better informed and more fiscally aware of you think?? After taking the loss with Hanover I am begining to think what's another $150k wiped off the kids inheritance?

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2.13 :scaredhair: also getting seriously worried. We still need to wait for house sale to go through so cant do anything until then. Forecasts are not good either :thumbdown: as we have so much debt

Dewb

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I dont think anybody would be willing to put their head on the line the way the Kiwi is going, we brought our money over when it was 0.38 and we took a hit then, its a hard call to make, good luck

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I'm also tempted to take the hit Genesis.

I have a small inheritance coming from my late and lovely ole Dad :wub: and am looking to pay off the mortgage.

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I am sick of waiting!! It probably will get worse aye?? But then knowing my luck as Kate hits the sell button the GBP will recover and flourish to $2.60!!! Why am I sooooooooooooo unlucky when it comes to money???

For those leaving NZ to emigrate the UK or returning from an emigration gone wibble or simply to do an OE what a wonderful time??

I reckon if if the kiwi gets any stronger you will get kiwis actually realising they COULD afford a life in the Uk and NZ will gradually empty leaving just Kate, myself and the kids here and our 2 cats..all alone. Which would not be nice.:eek:

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Okay I know this sounds weird and a bit Chinese whisperish but... I REALLY do have a cousin working for one of the wealthiest men in the UK ( a very decent individual he is too ).
This chap believes that the UK will have a complete economic collapse before the end of 2010. He told my cuzzy that back in Dec 09.

He is also of the opinion that governments around the world are feeding out false optimistic info to the masses, in order to encourage people to keep spending and hopefully stave off a Depression. Conspiracy theories abound. But this man is no idiot.

Its not an easy time to be making financial decisions. I would spread any financial resources . Funds in different countries, shares in various countries, dont keep money in 1 bank etc. Spread risk.

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Bit difficult spreading risk in the UK when you are no longer resident..only option is to go offshore. As someone said maybe now is NOT the best time to be selling your GBP large when its never been so low. Ofcourse it could get lower but then again it might not. I would like to bring some of our GBP over now to spread risk..even at these shitty rates..however Kate wants to stand steady and hold her nerve. If I sold we all know the GBP will rise sharply aye??:eek:

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Just a shade under $2.12 now..by breakfast time should be down to a nice round $2. As for the end of the week??? Maybe its time to kiss goodbye to every penny we have before it gets to 1 to 1.

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I would love to meet Mr Brown shake his hand and tell him what a good job he has made of the economy, Unfortunatly i can,t I would just like to stab him
Harsh but fair i think,

Neil

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Kate's just done a google and Visa said in Nov 2009 that the GBP would be back to C$2.50 come the next few months. So who do we believe? i can't see it spiking to that level in the next 12 months. We are all doomed. Unless of course you are doing the exchange the other way. In that case one is minted.

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$2.11 !!!!! :( Thats the lowest Iv seen it!

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What's to do? We don't need the money in NZ now BUT we can at best get a measly 3% over there whereas in NZ we could get almost double that and not have it tied up for yonks. 50k GBP at $2.10 is 105k. At $2.50 its 125k.

15k more if we could get $2.50 in say 1 year.

Pre tax (at a $2.1 exchange rate) 3% gives you $3150 a year. 6% would be $6300 a year. Point is it takes the $15k hit above down to just under $12k.

What would you do? Change some now and spread the risk or wait hope and pray the kiwi devalues in the next 3 months and the conservatives have a landslide victory OR just wait till hell freezes over?

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Spreading the risk is definitely advisable, but taking a hit is always gonna hurt. If you can hang in till after the election in the UK, there is some possibility that the pound will strengthen.

Fingers crossed!:fingerscrossed:

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And if its a hung parliment we're all done for:ohmy:

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My 2c

This isn´t about the strength of the Kiwi, its about the weakness of the pound, I know its all relative but whereas currencies can collapse overnight it generally takes a long time to build genuine strength. On that basis I would say the risk is heavily on the downside for the pound (relative to anything) for the next 12mths. The Kiwi seems stable so I don´t believe that will devalue anytime soon - they haven´t got the deficit problem that the UK has for instance AFAIK.

On the election, well there is a good chance that even if the Cons have a landslide in the election Big Dave just finds out how huge the deficit problem REALLY is and the UK still has to take the consequences whoever gets in power...and if hung then everyone will get the same info and be falling over themselves to blame the others for the problem....so I don´t see much upside coming immediately post-election TBH.

Moving GBP to NZ$ could easily offset the e/r hit with better growth providing that differential is maintained in the (better) interest rate you can achieve in NZ.

Any paper loss/difference over the e/rate movement in the past though really needs to be ignored as you can´t influence it. It is what changes will come over the next months and years you need to look at IMHO as there are decisions you can make which will affect the future growth of your funds from where they are now....

...and yes a hung Parliament gives the worst of all worlds IMHO....

Re: GBP crisis...yawn
 

After reading all previous threads on experiences and general luck with money, I feel this boils down to one of two potential outcomes:

1) Genesis decides to wait and not exchange money
The rate continues to plummet until you get 8 grains of rice to the £. The bottom will then proceed to fall out of the world rice market.

2) Genesis decides to take the plunge
America will discover that the strength of the $NZ is linked to Osama Bin Laden's hiding ability and will devote all available resources to crushing the Kiwi buck into obscurity. Simultaneously scientists at CERN will discover that a stable black hole to an alternative dimension made entirely of gold and diamonds can only be created by firing particles of british beef into each other in the large hadron collider, thus guaranteeing the economic stability of the UK for all time and propelling Sterling to a record exchange rate ratio of 1,000,000:1 against the septic-battered $NZ.

From this we can deduce that the election has nothing to do with anything and the best option to take is 1), right up to the point when I want to transfer me readies when a complete change of tack to 2) would be ideal.

Discuss.......

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yeah, I was gonna wait until Genesis had changed their money AND THEN exchange mine when the exchange rate is suddenly and miraculously much better ;)

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LOL!!! :D

Which saying should we consign to history first?:

a) "Doing nothing is always a safe option"

or

b) "Safe as houses"

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Ha ha me too :thumbsup: come on Genesis when you thinking of exchanging ;)

Dewb

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Genesis, if the pound had a total collapse then if would be reflected elsewhere too, and that may be the least of the problems which would follow. NZ would not be immune to a crisis elsewhere in the world. The NZ dollar will get weaker, that's my feeling and it would be crazy to 'take a hit' as you say. As the dollar stands now, who is going to bring money in NZ? Therefore, who can afford to keep the housing market going? These things will eventually be reflected in the housing market, which is vastly over-priced here in NZ. Also, think what this expensive dollar is doing for those selling goods overseas.
It cannot go on like this. Something has to give. See beyond the present, and remember things always change, and when they do, it can come quickly.

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Sorry guys but for now the lady (Kate) ain't for u turns. I could persuade her (because she loves and trusts me:eek:) but I am such a coward I do not want to be responsible for another fiscal nightmare in our home when the kiwi devalues a week later after we do the business. Sorry you will have to rely on some other 'reverse trend indicator'..or 'gormless twat' would be more appropriate.

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How about we just start an internet rumour that Genesis is about to exchange, would that be enough to move the global currency market :eek:

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That should do it.

Headlines read 'Gormless tosser losses squillions in botched exchange deal....sterling rallies'.

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On the subject of lots of money..or losing lots of it (my forte) anyone ever seen a trillion? Google 'trillion' and one of the hits shows you what a trillion look like on pallets. Now remember when you see it these are stacked in USD $100s..not 20s or 10s. It really is quite a vast expanse of wonga.

Will take your mind off the plunging quid for a moment or two and make you realise JUST HOW MUCH MONEY Mr Brown has pissed up the wall.

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So if i am reading the above posts correctly, I should put my money into British beef before this Hadron fella buys it all :thumbup:

I think i will start with 2lb of mince

Neil

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They used that headline when Brown sold our gold reserves... or should have, except for the rallying bit :(

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And what of Welsh lamb..does that not have some part of this equation?



NB I think the emphasis is on cuts of meat rather than minced meat.

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News flash 0952hrs NZ time today. Sterling hits $2.1295 against the kiwi $. Mass frenzy of selling GBPs starts.

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GOD DAM IT!!

Brought my house in the UK when prices were at there highest (no choice there).

Sold it before moving to Oz when prices were coming down 4 years later (broke even, no profit made).

Because of Oz move, just missed the peak of the GBP/AUD exchange rate so ended up getting 2.06 rate which sucked! Left some in the UK for when we were settled.

Oz visa rules changes so couldn't stay so came to NZ. Moved my AUD to NZD at 2.2 I think? :(

Now in NZ waiting to move over the remains of our GBP and its doing this with the crap exchange rate. I'm effing sick of all this exchange rate crap! ARGH!!! You save and save and save and then it all goes down to toilet just because you happen to get the chance to emgirate at the wrong time exchange rate wise!

So fed up. Hate Money!

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I just had to do it, yep that's a lot of cash:rofl:
One Trillion dollars

Right, off out to buy 10 British cows and tell everyone who will listen that Genesis is about to sell, I will be set up for life:thumbup:

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One concurs mate. When I think of the fact that I could actually be reasonably wealthy now had I not lost a small fortune on crap exchange rates within months of buying a very large amount of NZ$s (the GBP soared within a few months of me buying at 2.64), then there's the wedge I lost on shares..in partiuclar BT and finally the NZ Finance house balls up.


Ho hum, I can smile now..even at these shite rates, what can you do? Hindsight is something none of us has. I am glad that my kids are healthy and we have food in the larder. The Porsche Cayman would have looked good on the driveway of my acred property in Nelson but for now Palmy will do as will the 12 year old Honda.:eek:

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Look. Just because we are talking about me buying kiwis the GBP has reached dizzy heights exceeding 2.13!!!!

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2.135 rounded is 2.14!!!!! Wayhay:D:D:D:D:D Next stop 2.15! :thumbup:

Hang on

No

.....I´m dreaming :eek:

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Ahhh, but it wouldn't have guaranteed you anymore happiness. Besides which it's NZ - nobody could care less what you drive.:thumbup:

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...as long as it gets you from A-B safely and in a bit of comfort (not wet, cold and...in my wifey's case, the same hair style she left the hosue with ;)) I really don't care about what car I drive - I used to - guess I'm becoming Kiwi

You're right AL, I'm happy as a pig in muck ....but an extra few bucks wouldn't go amiss!

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:eek:

Mortgaged 1/3rd of an acre in a village outside of Nelson and a 16 yr old Suzuki 4wd.

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Yes, but i have a 'car thing'....or had a car thing pre kids. Thus driving a 12yr old Honda Odyssey is like sticking matches under my nails...painful.

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I can sympathise with that, people do wear cars after all....

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Cruised past 2.15 today....:eek:

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So if I type:

GENESIS TRADES SOUL TO DEVIL IN EXCHANGE FOR $NZ

That should pick up on Google.

See what happens tomorrow........