Spain May Not Be Uganda, But Will America Soon Be Argentina?

Tyler Durden's picture


The last few days have seen some rather concerning central-planning actions by Argentina. Fresh from their nationalization of Spain's YPF, not only did they "forbid individuals from buying dollars for savings" issuing a statement allowing dollars to be used for "travel, mortgages, and to send family members traveling abroad if they they run out of money"; but now we hear of the forced action on Argentina's banks to lend out 5% of deposits at rates well below inflation estimates in the next six months (or else). As Reuters notes, "The move... marks an escalation in [President Christina Fernandez] war on private enterprise which may spread further." It should be noted just how far central banks are willing to go (strong-arming banks into subsidized loans to businesses) and it would absolutely not surprise us if this is precisely where the US is heading as command economies become the new normal globally.


Via Reuters:

NEW YORK, July 6 (Reuters Breakingviews) - Fresh from nationalizing YPF, President Cristina Fernandez now wants to strong-arm banks into subsidizing loans to businesses. The move shouldn't have too big an impact on bank profits, but it marks an escalation in her war on private enterprise which may spread further.


CONTEXT NEWS- The administration of Argentina's President Cristina Fernandez ordered banks on July 5 to lend companies 15 billion pesos ($3.3 billion) by the end of the year at rates well below private inflation estimates. The regulation would force the banks to lend 5 percent of the financial sector's $67.6 billion in private sector deposits.


- The central bank announced the new regulation following Fernandez's public statements that banks would have to lend cheaply to businesses to help bolster a flagging economy.


- The decision comes shortly after the government nationalized the country's largest oil company, YPF, claiming that it wasn't investing enough in producing oil.


- Latin America's third-largest economy grew 8.9 percent in 2011 but growth is slowing sharply due to sluggish global conditions and surging costs at home.


- Shares in financial institutions fell following the announcement. BBVA Banco Frances shares lost 4.9 percent, while Grupo Financiero Galicia's dropped 5.5 percent. These contributed to the country's MerVal index of leading stocks closing down 1.87 percent on July 5.


- Reuters: Argentina gives banks 6 months to grant new loans

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Fri, 07/06/2012 - 14:54 | 2592845 francis_sawyer
francis_sawyer's picture

Chicago style politics...

Fri, 07/06/2012 - 14:58 | 2592860 Clayton Bigsby
Clayton Bigsby's picture

They are so fucked.  I got a c-note sez they will move on the Falklands soon...

Fri, 07/06/2012 - 15:01 | 2592879 francis_sawyer
francis_sawyer's picture

Shit ~ that was one of the last remaining places to go to survive the 'Zombie Apocalypse'...

Fri, 07/06/2012 - 15:20 | 2592947 NewThor
NewThor's picture

As long as I am still standing, America has a super hero. 

All it takes to bring down this growing Roman Empire 3rd Reich

is a good team, a great plan and a little divine intervention.




Fri, 07/06/2012 - 15:31 | 2592994 WhiskeyTangoFoxtrot
Fri, 07/06/2012 - 16:23 | 2593197 Buckaroo Banzai
Buckaroo Banzai's picture

"We reward our friends, and punish our enemies" -- The Chicago Way

Fri, 07/06/2012 - 18:57 | 2593539 Rahm
Rahm's picture

Cry Me A Fuckin' River

Fri, 07/06/2012 - 16:53 | 2593262 bank guy in Brussels
bank guy in Brussels's picture

That 'A-Team' of the classic TV show in the clip there, was 'wanted by the government' ...

Soon to be applicable to every genuine hero inside America

Fri, 07/06/2012 - 17:41 | 2593378 Clashfan
Clashfan's picture

Or maybe this is what's "soon to be applicable to every genuine hero inside America." Or maybe, ahem, "inside every genuine hero...", or maybe this isn't even what it seems? But it sure looks like Bloomberg reporter Sarah Eisen getting caught by the camera while she's playing with that huge, black strapon under her dress.

No foolin'. I wouldn't lie about something like this. If I am confused, please correct me. Another ZH poster on another thread said that Bloomberg or somebody said this was a microphone. Sorry, but it's not a microphone. No way.

Seriously, what is the mainstream, financial media doing? How does something like this happen? Any explanations? Seriously?

Fri, 07/06/2012 - 18:55 | 2593511 Clashfan
Clashfan's picture

Of course, every "conspiracy" needs an "official explanation." Here it is:

First, the other reporter's mic was malfunctioning, not Sarah's. Second, do they really believe that readers would think that she would have a microphone between her legs or have to hike up her skirt to fix it? Third, the piece mentions nothing about a strapon, which this image clearly represents. Of course, the piece offers no image.

It's important why? Because it shows how blatantly the mm lies. Can you not see it? The chick got caught playing with a strapon, and the spin is utterly ridiculous.

Fri, 07/06/2012 - 18:57 | 2593537 Jay Gould Esq.
Jay Gould Esq.'s picture


The exemplar of Banana Republic.

Fri, 07/06/2012 - 18:51 | 2593521 Hi Ho Silver
Hi Ho Silver's picture

We are all swinging dicks now.


And true to the mainstream media credo, an important quote was conveniently left out of the report.  To paraphrase "The banks were happy to take a bail-out paid for by the people. Now they can return the favor."


Fri, 07/06/2012 - 17:19 | 2593310 The Gooch
The Gooch's picture

"For he is truely his brother's keeper" -

Divine intervention...

Fri, 07/06/2012 - 19:56 | 2593662 Peter Pan
Peter Pan's picture

Wow, what a choice. On the one hand you have a central bank forcing banks to hand out cheap money to business and in the USA you have a government through its Federal Reserve handing out cheap money for banks to speculate with and buy government bonds.

Rest assured, that your currency is safe.

Unless you hold gold and silver you have no money.

Fri, 07/06/2012 - 14:54 | 2592846 Martin W
Martin W's picture

Maybe, they should ask UK for Malawines to come back?

Fri, 07/06/2012 - 16:16 | 2593177 Bullionaire
Bullionaire's picture

That Doug Casey sure knows how to pick 'em!



Fri, 07/06/2012 - 14:54 | 2592847 putaipan
putaipan's picture

get your pots and pans ready!

Fri, 07/06/2012 - 14:55 | 2592849 Oracle of Kypseli
Oracle of Kypseli's picture

We are all socialists now.

Fri, 07/06/2012 - 15:00 | 2592876 azzhatter
azzhatter's picture

I haven't given in yet and no plans to.

Fri, 07/06/2012 - 15:01 | 2592878 THX 1178
THX 1178's picture

LAWL @ Socialist Wall St. taking everyone's money. Socialist private banker assholes.

Fri, 07/06/2012 - 23:07 | 2594085 GoinFawr
GoinFawr's picture

...too bad we don't seem to be any better at that than we were at 'capitalism', or we might be debt free by now


Fri, 07/06/2012 - 14:57 | 2592852 Dr. Engali
Dr. Engali's picture

Coming to a facist country near you. It's already starting in California using the basturdization of eminent domain.

Fri, 07/06/2012 - 15:25 | 2592970 El
El's picture

What I'd like to know is how California expects to pay for property they seize. It isn't like they just take it. They do have to pay for it. Seems to me the banks would love for California to take some of these foreclosures off their hands.

Fri, 07/06/2012 - 18:51 | 2593526 taxpayer102
taxpayer102's picture




America for Sale: An Exclusive Excerpt from Matt Taibbi’s New Book on the Economic Meltdown
Our cash-strapped country is auctioning off its highways, ports and even parking meters, finding eager buyers...

Fri, 07/06/2012 - 19:37 | 2593626 Broomer
Broomer's picture


Fri, 07/06/2012 - 17:38 | 2593370 Antifaschistische
Antifaschistische's picture

If Californians refuse to pick up their pitch forks with this latest "eminent domain" crap going on then they're toast.   Someone in that state, like in this country, needs to step forward and be a man.

Fri, 07/06/2012 - 14:57 | 2592857 Dr. Richard Head
Dr. Richard Head's picture

All your moneys are belong to us.

Fri, 07/06/2012 - 14:58 | 2592858 Fascist Dictator
Fascist Dictator's picture

Che = Rascist Murderer

Fri, 07/06/2012 - 15:15 | 2592925 TWSceptic
TWSceptic's picture

I don't get it why do you call him racist, he's not even white.



Fri, 07/06/2012 - 15:37 | 2593030 W10321303
W10321303's picture

I feel so so so sorry for those POOR POOR Bankers

Fri, 07/06/2012 - 23:10 | 2594089 GoinFawr
GoinFawr's picture

Is that what happened to Trav77777?!

Fri, 07/06/2012 - 14:59 | 2592866 azzhatter
azzhatter's picture

Isn't that what NIRP does

Fri, 07/06/2012 - 15:02 | 2592884 francis_sawyer
francis_sawyer's picture

No ~ It's what Obummer does...

Fri, 07/06/2012 - 14:59 | 2592871 rsnoble
rsnoble's picture

Considering 2 of Argentina's former dictators are in court right now and facing spending the rest of their lives in jail.......maybe it wouldn't be so bad if that's what it takes to get some fucking justice around here instead of blowjobs and bonuses.

Fri, 07/06/2012 - 16:39 | 2593222 NidStyles
NidStyles's picture

What you are talking about is not Justice, it is revenge. Worse it's revenge that promotes statism even more so than the people whom you would commit this revenge upon. That is part of the problem junior. 

Sat, 07/07/2012 - 00:10 | 2594096 GoinFawr
GoinFawr's picture

 'statism'...  the ZH loonies' version of 'Godwin's Law'. Scratch anyone who uses that word to denigrate and underneath you'll find a hypocrite, or a bald-faced liar. Just try it once, you'll see.

Oh don't worry Nidsty, I know that there's not an ounce of irony in your use of the word because you want nothing but the best shure nough real live genuine skittle shitting unicorn anarcho capitalist absolutey nada zero never ever even a monad of government again because that putatively implies nothing but a guaranteed Rothbardian utopia for all eternity Amen (or at least it will be better than anything else that is/ever has been/ever will be possible, for me) as it MUST BE... I was talking about the other guys, you know, the real loopy ones.

Sat, 07/07/2012 - 15:47 | 2595213 ffart
ffart's picture

I read this in the voice of a drunken british taverngoer and it kindof put it into context.

Fri, 07/06/2012 - 15:00 | 2592874 Dr. Engali
Dr. Engali's picture

Didn't they just recover from a hyperinflationary environment? Are they really going to travel down that road again already?

Fri, 07/06/2012 - 15:02 | 2592880 azzhatter
azzhatter's picture

It only effects the unwashed

Fri, 07/06/2012 - 15:06 | 2592897 catacl1sm
catacl1sm's picture

Yep. Some people never learn.

Fri, 07/06/2012 - 15:19 | 2592943 nonclaim
nonclaim's picture

On the good side of this crisis, the zombie trade agreement Mercosur is in deep coma with some vultures already descending to check if anything of value is there in the region.

Fri, 07/06/2012 - 15:20 | 2592946 El
El's picture

This time it's different. /sarc

Fri, 07/06/2012 - 15:25 | 2592960 Bam_Man
Bam_Man's picture

"We are only going to drop one zero this time."

Fri, 07/06/2012 - 15:25 | 2592971 debtor of last ...
debtor of last resort's picture

Yep. Debt cycles evolve.

Fri, 07/06/2012 - 15:06 | 2592883 john_connor
john_connor's picture

The Fed can do this by simply not raising the interest paid on excess reserves to follow short term rates rising (when they do).

Banks will forced to lend to keep up or otherwise go bankrupt OR engage in ridiculous CIO gambles to make up the difference

Fri, 07/06/2012 - 15:28 | 2592984 NewThor
NewThor's picture

How does the old sayin go?

"You can force a elephant to give you a blowjob long before you can force a bank to lend."

The money is going to go into super RISK ON thingys. 

Fri, 07/06/2012 - 23:34 | 2594120 GoinFawr
GoinFawr's picture

If this is true then Argentina must have imported a shitload of elephants some time ago.

Fri, 07/06/2012 - 15:17 | 2592937 Tom Green Swedish
Tom Green Swedish's picture

If it turns us into Communists. I'll turn into Argentian.

Fri, 07/06/2012 - 15:39 | 2592950 Bam_Man
Bam_Man's picture

When you've dumbed the population down to a sufficiently low level, and enough bread & circuses are provided, the cronyism can come right out into the open. Argentina is clearly there and we (the US) will be very soon.

Sat, 07/07/2012 - 07:59 | 2594449 Umh
Umh's picture

So that's who is going to get the cheap loans. It sort of sounds like 'Country Wide".

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