wall street fall

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   buddingwriterposted 15 years ago

   I was wondering. Could the bankruptcy of wall street affect the value of the US dollar/currency? Because if the value of the US dollar falls, that spells more disaster as well for a lot of other countries. Mine included. Here in Trinidad and Tobago its - US$1.00 = TT$6.30.

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      sandra rinckposted 15 years agoin reply to this

      Well first, the value of the dollar has been falling.  What effect stock trading has in in its investors.  Meaning that if people continue to sell thier shares the companies go bankrupt because the stock holders essentiallly own parts of the company. 
      
      When no one is putting money in to sustain or keep the business running they cannot pay thier debts to other companies.  This results in layoffs, job loss and an unstable market because people are keeping thier money under lock and key instead of out in the market place making trades for goods and services.
      
      Mark is right, the companies are doing fine.  Because they are coorporations not one person is soley liable for what happens to the company and non can be sued or expected to pay back what they owe.  So if one big company goes bankrupt, they effectivly burned up someone elses money and one it goes, the domino effect.
      
      In order to preserve some stability, companies raise the price on goods to stay afloat but are lessening the demand, which then takes its toll on foreign markets, when foreign markets are supplying the U.S or whomever, with the goods and see a sudden drop in demand, they too raise the price.
      
      So now the value of the dollar had declined, which means the same dollar that could have baught you two tomatos last year, can hardly get you one tomato this year. 
      
      So in Trinidad, if 6 dollars can buy you a bushell of tomatos, if you come to America it will probably only buy you a couple. 
      
      Your best bet would be to invest your money in Trinidads local markets.    Besides  if you had 600TT, it wouldn't be much more than 60$ here. 60$ wont buy you a night in a hotel room.
      
      

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   Mark Knowlesposted 15 years ago

   It already has pet.
   
   But Wall street has not gone bankrupt, just a few merchant banks   Needless to say, the owners and controllers of those banks are doing just fine thank you very much.
   
   I do believe your currency is pegged to the dollar, but what difference will that make to you?

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      buddingwriterposted 15 years agoin reply to this

      I'll be going to NY soon to work for 6 months. If the value of the dollar falls too much, makes no sense I go. but if not, then I can come back to Trinidad with a hefty savings   .

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   Mark Knowlesposted 15 years ago

   Still lost me. Your currency is pegged to the dollar. That means the exchange rate does not change between your currency and the US currency.

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   Mishaposted 15 years ago

   She probably did not know this
   
   I for one had no idea, too

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      Mark Knowlesposted 15 years agoin reply to this

      I had to look it up myself

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         buddingwriterposted 15 years agoin reply to this

         ok, its like this. you work hard, eat little, sacrifice and save your money. Some ppl stay at relatives, some do live-in jobs. At the end of the 6 months, lets say you have US$7200.00. Return to Trinidad and convert that to my currency = TT$45,360.00. Get it now?

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            Mark Knowlesposted 15 years agoin reply to this

            So what has the value of the dollar against TT got to do with it?
            
            This was your original question:
            
            
            So, I am not sure what you are asking exactly as the TT is pegged to the $.

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               buddingwriterposted 15 years agoin reply to this

               up until you told me Mark, I did not know that. thanks for the info.

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   Mishaposted 15 years ago

   LOL, if your currency is pegged to the dollar, the exchange rate ALWAYS stays the same, no matter how much dollar/euro or dollar/yen fluctuate. The danger is at some point your government is likely to un-peg it, and then you are at a loss probably...

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      buddingwriterposted 15 years agoin reply to this

      I understand that Misha. I was just explaining my point for the sake of Sandra. Over the years many Trini's have done this. Even ppl from other countries do it. Come to the US, work hard, sacrifice, save their money. When they return to their country, convert it to their currency. A lot of Trinidadians today are 'living it up'. Thanks to hard work and the US dollar.

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   sandra rinckposted 15 years ago

   So what you guys are trying to say is that in Trinidad, what a dollar can buy in the U.S buys exactly the same in Trinidad????
   
   Come on!

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      buddingwriterposted 15 years agoin reply to this

      no thats not what am saying. Many ppl from a lot of other countries do it. am sorry. I dont know how to explain it any more clearly than I already have. To me its just so simple. people have been doing it for decades, not just Trinidadians. I just thought everyone knew that.

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      Mishaposted 15 years agoin reply to this

      LOL no!
      
      We are trying to tell that one can always exchange one US dollar for 6.30 Trinidad dollars. No more, no less. There is no floating exchange rate. This is called "currency is pegged to the dollar".
      
      I personally have no idea how much goods one can buy for one local dollar in Trinidad, even though I once spent three days in Port-of-Spain.
      
      People come to US because the salary for even unqualified illegal labor is higher than they can possibly make at home, they work for several months, and return home with money. We have similar things back home, too - people from all over former Soviet Union come to Russia to make some money, because of much higher pay...

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         sandra rinckposted 15 years agoin reply to this

         Oh I gotcha

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