Will the dollar collapse?

My question is what about my mutual funds? How does this affect them?

I have some money tied up in "conservative" and "modest growth" mutual funds.

I'm an idiot when it comes to financials, so I just answer the banker's questions and I said I was "somewhat worried" about the ups and downs of markets.

I don't have a lot tied up, but it's enough I can't afford to lose if the bottom falls out.

 

The dollar won't be worthless, but it certainly is worth less.

 

I'm sure the resident dancers in the Windsor Ballet are feeling the pinch.

 

I think Tourism Canada is projecting 125 American tourists this summer.

 

I follow the dollar's ups and downs on a daily basis given that I live in the euro zone and get paid in greenbacks. To put it mildly, I don't by too much stuff like electronics unless I known someone who is coming from the states and can stick it in their suitcase, a la new laptop or iPod.

Even buying a new DVD is now out of the question given that they tend to retail for about 19 to 22 euros or 27 to 32 U.S. dollars.

Thankfully staples are fairly inexpensive (beer, food and what not) but man, it does hurt now.

 

I'm now being paid in buttons. Have I made a bad choice?

 

When I was in Buffalo last weekend, one of the bars that always had "CANADIAN DOLLAR AT PAR" on their signboard had changed it to read, "US DOLLAR AT PAR." I laughed in spite of myself...

 

No. There's a 2-to-1 exchange rate...

 

The dollar has been on the skids for far longer than the housing/mortgage problems. I'm no economist, but this is only getting us in a more troublesome global mess.

 

A weaker dollar isn't necessarily bad, is it? It does make U.S. exports more affordable.

 

The flip-side is that American companies become cheap take-over opportunities by foreign companies.

Being weaker than the GBP isn't a terrible thing. Being weaker than the Euro isn't terrible. Being weaker than the loonie, yeah, that sucks.

 

Ah, the good ol' days of 2002, when the loonie was worth about 65 cents. But the CAD is worth more against every currency, not just the greenback. The spike in the price of oil has helped.

From what I've heard, Canadian businesspeople would rather see the loonie at about 85 cents. The high dollar is not helping their manufacturing sector.

Regardless, I don't think I'll be heading to Casino Windsor anytime soon, sadly.