Another Great Reason To Do Business In Argentina.

[ghost]

http://finance.yahoo.com/news/argentina-just-pulled-most-only-170000501.html

 

[camberiu]

Meanwhile, next door. Happy times ahead for the region!!!!!!

Brazil Is Going To Hell In A Handbasket

 

[nkotb]

This article is written by monkeys with typewriters. I still have no idea why (or if) Cristina has the authority to fire the CEO of a private company, what Citi has done to deserve this, or what the agreement with NML actually addressed.

 

[Pensador]

http://www.youtube.com/watch?v=DohRa9lsx0Q

http://www.emergingmarkets.org/Article/3440718/Brazil-Argentina-drag-Uruguay-down-as-Astori-pushes-diversification.html

 

[ghost]

Meanwhile, next door. Happy times ahead for the region!!!!!!

Brazil Is Going To Hell In A Handbasket

SERIOUS happenings in Brazil. Very serious. The Argentina drama is just matinée hysteria enacted by a bi polar drama queen. But Dilma has a cobra by the tail.

 

[camberiu]

SERIOUS happenings in Brazil. Very serious. The Argentina drama is just matinée hysteria enacted by a bi polar drama queen. But Dilma has a cobra by the tail.

Indeed. And if Brazil goes, Argentina goes with it.

 

[citygirl]

Can anyone point me towards a good impartial write up of the Brasil situ? I am following but I don't think I totally understand what is going on//the back story her.e

 

[Nico.S]

Argentina should be considering devaluing its currency to remain competitive in the Brazilian market and to made adjustments now before its forced it. Sadly,this is starting to look like 1999.

 

[Pensador]

Argentina should be considering devaluing its currency to remain competitive in the Brazilian market and to made adjustments now before its forced it. Sadly,this is starting to look like 1999.

Definitely gonna be some shake ups over the next 6 to 18 months.

 

[EdRooney]

Well the Bollocks Article Parade continues on BAExpats.

I seriously doubt monkeys on typewriters can come up with that many factual errors in such a short space.

For a couple of gems: No, NML is not seeking 100 cents on the dollar for their investment: they are seeking 100 cents on the dollar of what the bonds were originally worth. They paid a fraction for that.

Secondly, it is not some sort of occultic mystery what laws Citibank broke. They were put between a rock and a hard place in the fight between US Judge Griesa and the Argentine Govt in the "vulture fund" dispute. By Argentine law they had to make payments to bondholders that were prohibited by Griesa, and as any rational business would, they chose to break Argentine law instead of a US court order.



2. The Brazil situ in brief: Brazil has been in recession pretty much since the end of 2013. With the economy in the dumps, the govt has decided to apply austerity measures, cutting wages and spending, thus making the situation worse. Perhaps more accutely, a ginormous scandal has been uncovered in the state oil company Petrobras, with officials from both major parties taking kickbacks to a tune of at least USD $6 billion.* Rouseff herself has not been implicated personally, but she was the head of the company at the time, so it's her head.



3. Lastly Nico: I agree about the need to keep the currency low in order not to sabotage growth, but in 1999 this country had 53% of its population living under the poverty line and over 25% unemployment. It's not even close.


*Edit: most sources are quoting the scandal as being in the 6 billion reais (USD $3.7 billion) range although Forbes quotes Petrobras CEO Aldemir Bendine saying it may be as high as $30 b.