Big Heist in Argentina

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Stanexpat

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This is being called the biggest heist in history. The government is nationalizing private pension funds totaling $30 billion. The plan appears to be to loot these funds to fund and maintain the government's overspending. This seems like a fairly desperate move and significantly undermines private property rights and reduces confidence in the country and the government.

This is very negative for any kind of investment people may had been considering for Argentina. God help the poor Argentine people who have been saving for retirement.

Bloomberg.com: Latin America
 

nikad

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Stanexpat said:
This is being called the biggest heist in history. The government is nationalizing private pension funds totaling $30 billion. The plan appears to be to loot these funds to fund and maintain the government's overspending. This seems like a fairly desperate move and significantly undermines private property rights and reduces confidence in the country and the government.

This is very negative for any kind of investment people may had been considering for Argentina. God help the poor Argentine people who have been saving for retirement.

Bloomberg.com: Latin America
Tell me about it! I am one of those Argentines :( There is no way you can win here: the Federal Retirement Plan sucks and you get paid a ridiculous sum of money, also the government has historically used these funds for different purposes ( campaigns, debts, dubios other things, etc ), the Private retirement plans have been forced to invest in Argentine bonds... so you are basically screwed either way :p Thank God I never put all my eggs in one basket, but it is indeed infuriating.
 

Rad

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I thought that the gobal crisis is not supposed to have any effects on Argentina</sarcasm>
 

jp

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Well, not that I thought my pension fund here was going to keep me in clover during my frail old age, but it was at least vaguely comforting knowing that the money being deducted from my salary was going into a pension fund that some day would actually pay out.

But no, Cristina's decided to steal it all.
And now if I leave the country I lose it all.

Ho hum.

Still, at least its sunny. Thieving cow can't take that away.

(link: http://news.bbc.co.uk/2/hi/business/7682877.stm)
 

jp

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dbl posted on this one.

My understanding on this one was that if you paid into a private scheme, you could leave the country and take it with you. But not with national schemes. Leave and you lose the lot.

Bye bye pension...
 

sergio

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I was talking to an Argentine friend today, close to 40 years old. He was really upset about this plan. The money will be spent to keep the Kirchners in power and to finance Cristina's reelection. Then down the road the fund will be bankrupt and people will have greatly reduced pensions.
 

nikad

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Hmmm I have the feeling that this going to get really nasty later on today when she officially announces it.
 

diosaarenosa

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deja vu?! i thought the government ransacked the state pension reserves in 2002 as a last ditch attempt to avoid the inevitable crash that followed....
 

Rad

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"We're going back to the dark ages,'' said Jaime Valdivia, who manages $1 billion of assets for Emerging Sovereign Group in New York. "Not even in times of the worst financial stress did the government ever think about taking over the private pension system.''

Bloomberg.com: Worldwide
 

soulskier

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Stanexpat said:
This seems like a fairly desperate move and significantly undermines private property rights and reduces confidence in the country and the government.

This is very negative for any kind of investment people may had been considering for Argentina. God help the poor Argentine people who have been saving for retirement.

Bloomberg.com: Latin America
Stan, can you elaborate why you think the pension robbery will undermine private property rights?
 
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