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Argentine Stocks Continue Crash After Last "Moderate Voice" Resigns
The Argentina MERVAL stock index is down 16.5% since yesterday's news of the resignation of the last voice of reason among Argentina's policy-makers. As we noted previously, "this is not a good sign" and indicates a worrying escalation in the chances of hyperinflation..
This is the MERVAL's worst 2-day drop in 6 years.
"Fabrega was perceived to be a moderating voice and someone that really understood financial market dynamics."
What some money-printing gives, too much money-printing takes away...
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let the debt dominoes start falling already...
trying to be optimistic (as the western "markets" start to turn green)...
Ebola will fix this.
What in tarnation is that "market" doing at such lofty levels, anyway? This is Argentina, right?
What in tarnation is that "market" doing at such lofty levels, anyway? This is [insert country], right?
There, fixed it for ya.
Did you not hear that they have 40% inflation? Their stock index tracks the peso prices of stocks.
Damn, that's like the exact opposite of the US. Stocks take off when the last sane voice resigns.
There is a sane voice in the US banking/stockmarket noise machine?
Yeah, but that could never happen here.
Bullish!!!
No Shit. That ramping exponential curve fell off a cliff, you say? How quaint.
Long a crash in ARG peso terms?
"Usually, the giver of the banquet smokes the good weed first and then lets the partyers smoke the bad Mexican weed last. You, on the other hand, have the saved the good stuff for the end..."
No, I don't think so. The Big Boys have already factored this in. You might be able to pick up a box of Argentine Whole Wheat Goodness (No more than 2 % insect parts) but that's about it.
CRASH! All Hail the next Socialist/Populist for Argentina!
CW
Russia's second biggest lender reduces dollar loans
http://rt.com/business/192192-vtb-restricts-dollar-lending/
In general, we are trying to avoid extending dollar loans in order to de-dollarize the economy. This is right. Many businesses prefer to borrow dollars not because they need them, but because the currency looks less expensive. But in doing so, they assume currency risks without having dollar incomes. And this is wrong," TASS quotes Kostin as saying.''
It's different this time. It's not the same as replacing precious metal with base metal, or printing more paper currency. This is a new age of electronic currency, so it won't cause hyperinflation this time!
(yes monetarists literally believe this)
Because when you have big inflation...stocks go up too....
Strikers threaten to blow up French factory, stalling Hollande’s bid for economic reforms | National Post
my ex-wife was from argentina. similarities i have come to discover:
1. constant use of the words "crash, broke, debt"
2. do everything they can to get it to the court room and when they don't get the answer they were looking for, stomp their feet at the court until they get the arrows pointed back their direction
3. love to borrow money. feel entitled to not pay it back. then when asked to pay it back, "tu esta el diablo!"
no wonder she is your x wife , your Spanish sucks so bad i don,t even know if we should believe you.
If "printing" weren't theft and government services not violence, Argentina would be paradise on earth by now.
An American, not US subject.
^^^^^
@kchrisc - reasons we got divorced:
1. my wife & her family found & stole the $$$ printer in the basement
2. my wife & her family found & stole the $$$ tree in the backyard
And the guillotine?! Please tell me that you got to keep it.
An American, not US subject.
"They have a $$$ tree, and I have an axe."
Clearly the Argentine stock prices were artificially inflated and they need to find a market level.
Hopefully the international banks are the main bag-holders.
hahahahahahahha
as my attorney told me "if you had kids with her, u would have been their slave for life"
if we had kids, i wudda:
1. asked my attorney to borrow his guillotine
2. wudda went into the garage & started the car
wise man told me during that brutalizing process "u know why divorces are so expensive ... because their worth it!"
Sam - my Spanish beyond horrible - married to an argentine for 3 years and I can't speak a lick.
"....MERVAL's worst 2-day drop in 6 years."
Argentina is once again being Argentina. But there is something different this time.
From an article in The Economist(http://www.economist.com/news/americas/21621867-resignation-central-bank...), published about an hour ago(but dated 4Oct?) as I write this comment(~500PM EDT):
"Argentines have not been able freely to buy dollars through official channels since 2011, when the government plugged them in order to stem capital flight. Since January, when the government devalued the peso by 20%, Argentines earning more than about $1,000 a month have been able to change up to one-fifth of their salary at the official rate. Those who wish to swap more of their inflation-plagued, volatile pesos for stable currencies must do so on a parallel market, referred to as the “blue”.
The blue dollar rate, which is often viewed as an economic pressure gauge, climbed to a record high of 16 pesos to the dollar late last month. In response, the government has told people to simmer down. “Regarding the psychosis that there aren’t dollars and that you have to go to illegal markets to get them, it must be said: society needs to calm itself,” counselled (sic) Emmanuel Álvarez Agis, Argentina’s vice-minister for the economy, in one interview. The blue rate has since come down a little, to 15.60 to the dollar, but it is still far weaker than the official rate of 8.5."
And, the last sentence, in which The Economist gets it wrong: “The album from which “It’s All About the Benjamins” was taken was called “No Way Out”.”(one might wonder if there is any schadenfreude in that sentence)
Argentines making over $1k(USD?)/wk can convert only 20% into USD at 8.5, and get the other 80% at 15.6,cash only. Unsaid, is that Argentines making less than $1k(USD?)/wk will have to buy any USD at 15.6, and cash only.
What is different this time is that Argentines(poor & wealthy alike) have the option to say FU(with thanks to Kevin Spacey) to: (1) their govt & rich class; (2)to a handful of super rich Yankees(the vulture capitalists who refused the haircut) who have bankrupted 42 million people; and, (3)possibly a British Financial Newspaper gloating over the Argentines' misfortune.
The way out, indeed, and that which is different this time, is something The Economist didn't think of and which ZH has ignored for many months now. Argentines(poor & wealthy alike) can sidestep the Peso and the USD by buying Bitcoin and other cryptocurrencies. Will the Argentines catch on? Time will tell. Could have some very interesting effects on world finance.