Argentina's President Struggles to Avert Economic Crash

[MilHojas]

Argentina's President Struggles to Avert Economic Crash — Update

www.morningstar.com

 

[Fiscal]

79.02 today

 

[Pierre Smith]

This is something else: She is worried about rising food prices amid a widening gap between the official value of the peso, at about 80 per dollar, with the black-market exchange rate, which reached 180 per dollar last week.

So, when he was first elected, I somewhat hopefully suggested that Fernandez could well sideline Cristina, remove her people, and consolidate power, leading to either a figurehead role for her and/or her ouster. So far, he's not living up to my hopes.

 

[camberiu]

So, when he was first elected, I somewhat hopefully suggested that Fernandez could well sideline Cristina

Seriously? Do you really think this bitch was born yesterday? She did not survive politically as long as she has if she did not know how to play the game. Cristina has numerous flaws, but lack of political instincts, lack ruthlessness and stupidity are not some of them.
You were expecting Cristina to be the prey and Fernadez to be the predator, while the roles were reversed from the get go.

 

[Pierre Smith]

He's the president, she's not. The opportunity was there.

 

[camberiu]

He's the president, she's not. The opportunity was there.

She has the political base and connections, he does not. He cannot sustain himself politically without her. She holds him by the nuts and they both know it. Sidelining her was never an option.

 

[sts7049]

This is something else: She is worried about rising food prices amid a widening gap between the official value of the peso, at about 80 per dollar, with the black-market exchange rate, which reached 180 per dollar last week.

So, when he was first elected, I somewhat hopefully suggested that Fernandez could well sideline Cristina, remove her people, and consolidate power, leading to either a figurehead role for her and/or her ouster. So far, he's not living up to my hopes.

if you thought that would be the case, i want some of what you smoke!

 

[mc kenna]

The economic crash is inevitable , this is not something you can get away with a presidential decree like he did with the prohibition of freedom to travel . I would go as far as saying, we are in the middle of the crash as we speak.....

 

[notebook.fix]

Cristina is overrated. Don't confuse political power with leadership strength, just put a uni student in front of her and she falls appart. Too many people miss the fact that she rose to power on the corpse of her corrupt hubby. Anyone can be popular while there's plenty of reserve$ in Banco Central & ANSES. I predict this is the begining of the 'La Caida' for Peronism. Covid-19 is like sunlight to bacteria for them , 75 years was long enough for this sect. Let's see what happens in December when the money velocity ramps up & inflation starts to really byte hard, party like it's 1929 ;-).

 

[rickulivi]

Is an economic crash inevitable? Who knows? we all have our opinions and make our bets, or don't. Whereas I am not a fan of this government, slowly I get more and more impressed by its economic minister, Martin Guzman. For one, he does not seem to mind reversing course, if he feels results proved him wrong. Second, he does not seem to believe in magic, but rather, in patience to solve problems. I like both traits.
He made me lose too much money, but I don't necessarily blame him. He inherited a difficult situation and it was my own love, stupidity, or greed that blinded me to what the prior government did.
Guzman did not panic when the dollar rose to $195 and has brought it down tremendously. He deserves a lot of credit for that. He kept his cool under duress. Maybe he has the right type of mind or thinking that may result in crash avoidance and in creating a sustainable path to growth. For me, the next two critical steps that would reassure me that things don't have to end up with a new crash are a successful renegotiation with the IMF, and a multi-sector agreement that commits all important political parties, and other important players, to a five-year plan with sound economic goals like the elimination of fiscal deficits, a consistent trade surplus, low inflation, and economic growth.
We'll see if Guzman has the vision, and the political support, to avoid a crash and deliver the type of goals I just mentioned. In the meantime, enjoy life!