Now that they are destroying fixed income for seniors, I want to be the first to predict that in the next year or so, tourism is going to crash. We budget about 12K a year for travel but since we're getting nothing on our savings, we're going to cut back, big time. We'll still travel, but no more big bucks vacations for us. Talking to many of our friends, they say the same. Many places like the Caribbean, Hawaii, Florida, and of course Europe will feel the crunch by 2013. Haven't heard anyone speak of this yet but it's coming. Then, you're really going to see the employment figures explode. THANKS BEN IN ADVANCE!

Yep.

2011 was NYC best year over 50 million tourists, 2nd largest business in NYC after Banking Fraud. NYC will be devastated if tourists don't come who are we going to mug?



PCLN and Expedia are at highs maybe some out of the money put lottery tickets.

Shouldn't this have happened already? ZIRP in place since 09.

I was just thinking about travel plans today. I don't plan on traveling anymore, actually. I traveled when I was young, in my teens and 20s.

Rd, it would be interesting to see the breakdown between US residents visiting NYC & foreigners (taking advantage of a weaker dollar)?

That's been a big part of it. The western ski resorts are covered up with folks who earn euro's using the strong euro to pay for vacations in dollars.

No way I would plan a vacation to Europe with the dollar where it is.

FX moves should mess with NYC's cashflow.

even though zirp was in 09 some people had stuff locked in already.

My grandmother didn't take hits til this year when her 6% cd from 2002 finished.

Yeah...people think refis are beneficial to the economy but I think they are largely offset by resets in fixed.

Matt makes a good point. I still have one CD making 4.75 until the end of 2013 so Zirp is still making its way through the system.

Noticed more Australians than North Americans when I was in Europe last October. That says quite a lot...

it will be interesting to see the aftermath of a post-zirp era, if it happens.

trapped in a 1% CD and the rates make their way back to 3-4%.

There will be some*****ed off people.

What will the banks be doing when they are trapped in low yielding **** when rates normalize? You won't find a bank that could survive that let alone survive all the mortgages no longer being paid that they are ignoring.

Tourism covers a wide spectrum. IF you are talking about tourists to America, then I would say yes. IF you are talking internal tourism where Americans are visiting internally, I would say no if price of oil stays the same $88. a barrel or goes lower (except in CA where the price of gas has not dropped despite price of oil dropping).

The RVers are going to hit the road again if price of gas drops to under $3.00 a gallon. Flying is going to continue to take a hit because of TSA. That will be minimally because most of America has been conditioned to being slaves and they don't mind as long as its for their "safety".

Interest rates aren't going to normalize here. The Fed can't let it happen anymore than Japan can allow it to happen. Not sure why anyone would suggest that. Japan has ZIRP for a very long time - THEY HAVE NO CHOICE in the matter, either that or fold.

I see PLENTY of big pig RV rigs getting dusted off and made ready for travel. I live around the corner from a self-store place and in 2008 most rigs sat. This year most rigs have already been made road ready.

BTW, gas here= $1.30/l = $4.80 US gal approx.

As for rates, ZIRP forever or until we implode, whichever comes first.

Great. I make my money off those who think they have.