Quote:
Originally Posted by Hehe
I don't get why Poloz doesn't include offshore investments by Canadian (people and corp) during the height of loonie. Subtract that from their models and they can get a much clear view.
When loonie was low, investing offshore didn't make much sense. But when our loonie was on par with USD, investing in US and/or other foreign were extremely attractive (take RE for example... compare what you can get for 1M in Canada vs. in US)
BoC continue to believe that when loonie was high, CDN would import more and become more competitive while STAY in Canada, but they never think how a higher loonie simply enabled CDN corp to finally move abroad.
I have worked with so many requests for the last few years about creating entities abroad to cover part/entirety of their operation that I can't even remember when the trend started.
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that's exactly what happened. high dollar just made me move all my cdn investment dollars into the US, because we all knew the strong Cdn $ was a short term anomoly.
now we're going back to normal (weak cdn $) but as has been said above the weak dollar will now just amplify the problems that we didn't address over the last 6 years.
we really didn't miss the economic downturn, we made policies to not feel the full effect, but that never works, we will likely feel it harder now that had we just taken a big bath in '08/09