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HDH and the USD

MrBoston

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I had two HDH ladies tell me this weekend that most (%80+) is out of towners. Mostly from the US and other travellers. One girl said that the exchange rate has hurt business significantly. It could be a lean winter for some of these agencies. My opinion is that neither of the girls I saw would compromise on price.

-MrB
 

Rookie

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Originally posted by MrBoston
I had two HDH ladies tell me this weekend that most (%80+) is out of towners. Mostly from the US and other travellers. One girl said that the exchange rate has hurt business significantly. It could be a lean winter for some of these agencies. My opinion is that neither of the girls I saw would compromise on price.

-MrB

That very same topic was on the news when i was on my trip. No, not the SP business but the exchange rate. One pseudo-economist said it would probably reach the low 80's soon (.8 USD=1 CD) and I have to agree. The USD is dropping and the CD is strengthening at the same time.
 

E B Samaritano

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The exhange rate is a first order factor affecting at home demand for HDH services..

Tourism in Montreal is down significantly this year. For instance, the Gran Prix was down an estimated 15%, part of which was attributed to the rainy weather. Other businesses that I patronize on a regular basis say their gross is down as much as 40% from the same period last year. I`d say there are a variety of factors including continued fallout from 9/11, the rather anemic US economy resulting in less individual disposible income-something which has had a profound effect on pricing in some US markets, and a cutback in business travel as a result of the down economy. Couple these with that declining exchange rate for the USD and it does translate to the fact that a few of us will be staying home as opposed to footing the expense of holing up in Montreal. On the other hand, the HDH ladies can and do travel to the US. Many of the guys in the Bay Area have never been to Montreal yet have met many of the companions and INdy Network girls. These ladies can compete in local markets at their 300 dollar price point as that is just about upper range of the middle market. If they were local US providers a few could get away with 400 USD per hour rates. Something I`ve noticed about pricing in the sex markets. I could almost call this Samaritano`s law-pricing doesn`t change appreciably for HDH markets even during a economic downturn. Supply in the HDH market may change but the price point will not. The more monied individuals who are likely to take advantage of these services are affected less by the economic downturn. A rising economy will cause that upper range market to grow and will on occassion even drive prices up due to more demand. But once a price point is established at the high end, it tends to remain. I postulated this about Toronto pricing back in 2000 and even said pricing would go higher. The guys on TERB said I was wack. What happenned, pricing went up alright, despite the fact that the local economy was slow. Entirely different dynamics drive the higher end of the market. You`re more likely to see the cost sensitive market segment be more responsive to a downturn. Some ladies at the high end will migrate to the middle market in desperation, some of the more established ladies will remain in business due to the fact they have a high percentage of clients who are financially unfettered by the economy, and yet still others will drop out of the business altogether rather than allow themselves to fall into the middle band and what is an actual or perceived lower quality level of customer.

Fall and winter are off season and actually the best time for us hearty hobbying gringos to go to Montreal. Great hotel room deals, and the availability of ladies is much higher, particularly in the LDL agencies where the girls have less mobility. A few of the more popular HDH ladies take off for warmer climate as soon as school is out after the first week of December. But they don`t relocate and are typically back home in a month or two. The off season affects the LDL agencies as well. With business down there is less money in the local economy and that translates to less demand from the locals. Some of the locals may resort to other even cheaper bottom of the market services from streetwalkers or South Shore agencies. I recall Charlene in February of 2001, then with Maxximum told me she remembered plenty of days when they rode around and the phone literally rang only twice the entire day.

My take on the situation is that those in the US who live within 5 to 6 hours driiving distance and where there is a shortage of talent in the local market, will still continue to journey to Montreal. Expect to see some real aggressive pricing from hotels this coming 2004 season. If the Gran Prix is not in town, they will be practically giving away rooms during the summer. For me the cheaper rooms translate into a savings so that I can easily justify the cost of escorts that will cost me 300USD/hour. The price point at 450/2 in Canada is another bonus as the prices in the US are 300/550 and that is an incall in a downtown hotel. I much rather prefer to entertain in my own room, and incall situations in the states pose additional hazards to the hobbyist given the illegal nature of the entire escort business down here.

Montreal is quite similar to Las Vegas when it comes to the HDH market. The prostitutes that work the Casinos and most of the agencies in Las Vegas proper depend heavily on tourists as the locals can`t and won`t pay the high prices/ripoffs they typically want to charge. The difference would be that most of the women are absolute duds, no matter how good they look. Las Vegas has some of the most boring, over-rated and over-priced sex in the US. It`s a shame that so many tourists, and that would even be folks from Canada, waste their time pursuing sex in that city. The brothels are absolutely horrible. At best they distribute passionless cookie cutter sex. Don`t even think about and kissing, digits, DATY..not hardly. Most if not all of these activities are regulated by the health authorities who forbid uncovered activities in the brothels. Then you have the damn hotels that make escorts run the gauntlet just to get to your room. So if you guys ever think you have it bad up there, I can assure you that the LDL market is nonexistant in Vegas. At least Montrealers still have affordable, mostly scam free sex available from ladies who deliver a good experience.

EBS
 
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MrBoston

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It will be interesting to see how much of this GDG market is completely exchange rate insensitive (as I am).

Carry on my brothers.
Stay safe.
-MrB
 

mk1992

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have read it a few times now..... don't know what caused people to think that way.....but it seems like a lot of posters here think that the Canadian economy is in the dumps.

Just ask yourself, if the economy is so bad, why is the CDN so high?

As another point of comparison, in 2002, Canada, on a population <1/10 the size of the US, generated 490K new jobs while US lost 3M in the last 3 years. This year, Bank of Canada jacked up rates to cool the economy, hence the CDN rise, especially compared to the US$. This year, for the first 9 months, there were only 50k new jobs created in Canada.

I bet you that next year, the day after the Nov elections, the US$ will take a strong multi cents size move up while gold will go down 10% in a day, assuming Bush gets kicked out for his billionaire tax cut and for doing massacres half way around the world on the general population's credit cards. This will be something equivalent to the election of Carter when gold doubled within one month after the Nov. elections. Got to be a play in there somewhere, for making a buck........
 

E B Samaritano

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MK,

I see nothing on this thread that remotely resembles a discussion of the Canadian economy. And I find it amusing that you would try to compare the performance of the Canadian economy with that of the US. The Canadian economy doesn't have the economic output of California. Perhaps you should compare it to what it wants to be when it grows up. With a nationwide unemployment rate at 8% in the middle of what you would describe as being good times, one has to wonder if you guys know anything about how an economy should function. I guess when you're used of staring at flatlines on the screen, an occassional blip must mean economic prosperity. The fact is that 8% unemployment in the US would be deep recession bordering on depression. How can you guys experience inflationary pressure necessitating a raising of interest rates when you have an 8% unemployment rate? Our residual umemployment is below 4% where it remained during a large portion of the Clinton adminstration. And there were relatively low and stable interest rates with little inflationary pressure. The Phillips curve was disproven under the Clinton Administration. You can have full employment without excesssive inflationary pressure afterall.

The USD has been artificially high during the 1990's and countries like China has been manipulating their currency keeping it purposely low to make Chinese imports more inviting. I welcomee a continued fall in the dollar. The relatively high USD has contributed mightily towards growing the movie industry in Montreal as it made shooting movies there cheaper. Guess what, the backlots of Hollywood are humming again as more work is being done in LA, meaning less production in Canada. We lost a ton of jobs in the US to Canada based on exchange rate factor alone. In fact the US has set up a system that allows if not encourages a lopsided balance of trade..that would be where we buy much more than we export. That would be where we buy 85% of your output. Without preferred access to US markets just what economy would Canada even have at this point. It was set up as a supply depo by Great Britain and never shook that role in life. Who cares about the creation of 490K jobs unless they are high paying jobs. How many high paying jobs is the economy up there generating? What is the average per capita income in Canada compared to the US? Wanna bet US per capita income is almost 50% higher? Seems to me there are still a lot of well educated underemployed people in Canada, not to mention the 2 million down here working in our underperforming economy. The problem is you can't generate enough jobs in Canada to keep your folks at home.

On another note, I'm sorry to say that I wouldn't count on George Bush losing the next election. I didn't vote for him in 2000 and I won't be voting for him in 2004.

EBS
 
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mk1992

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regarding nothing on this thread that resembles a discussion on the Canadian economy. Do permit to quote: "...I postulated this about Toronto pricing back in 2000 and even said pricing would go higher. The guys on TERB said I was wack. What happenned, pricing went up alright, despite the fact that the local economy was slow. ....."

unemployment rate - the Canadian folks here perhaps can correct me on this..... but I do not think that the Canadian unemployment rate is calculated the same as in the States. Specifically, people don't disappear off the umemployment rate if they cannot find work after 3 months or 6 months or whatever. As such, the rate in the US, I believe, is artifically unreported.

GDP/person - ? can't really see the relevance of that in anything. Do you? One thing that amazed me about Canadian cities - they do not have the trench mentality of large US cities. Here in Montreal, I can and have gone anywhere in the city at any time of the day or night. I would not do that in the US. Yes, the socialist type of government is probably the cause. And that type of system also creates a lower per capita income, I believe. Which one is better? All depends on one's values.

China manipulating currencies - China has had a fixed exchange rate with the US $ for ages..... never tried to move the rate either way. They rode the US $ up and now they are riding the US $ down. Perhaps it's the US that's trying to manipulate the US$ down now.

The old theory that if my currency is down, my good should compete better is an old one. But in this case, with the US currency way down esepcially compared to the euro for example, somehow the US trade-balances are still clinging at all time high. Perhaps this theory needs re-visiting. As to China or India 'stealing' jobs...... do you really think that if the China $ or the India whatever is valued 20% higher, those nothing coder jobs or IT jobs will come back onshore or they will start making Levi's in the US?

You are from silicon valley. You should know that the high tech economy is built on 'no standing still'. That what kept silicon valley on top. Not simply retaining jobs of yesterday or even today. That's just the way it is.
 

The_Seeker

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as this thread (and much of merb) drifts

away from women and towards economic theory, etc i am reminded of that very old TV commerical where this little old lady looks at her lousy hamburgar and yells out ....WHERE'S THE BEEF

in her spirit i can only yell out ...... WHERE'S THE PUSSY
 
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