Do you fear a crash similar to 2001?

[toongeorges]

Recession, even higher inflation, tough times for sure BUT you will find very, very, very few economists here or abroad who believe this will end up like 2001. Now, of course, that doesn't mean it will not happen but I think it is far more unlikely than some on here seem to think.

In 2000, people also did not expect the crash of 2001 to happen. It is hard to tell where things are heading. It is clear that a correction is due.

 

[pizzadreams]

I think the start of the solution is to stop the deficit, the hard it may be, only this way the situation improves. Difficult, since Argentina is addicted to spend more than it has...

This is the root of all problems. The rest are details. Most will never understand this, and how can they? Argentines are addicted to spending with no remorse. And ultimately blaming it on someone else, of course.

 

[perry]

https://m.minutouno.com/notas/30841...rio-esta-paralizado-y-aun-no-paso-lo-peor/amp


For people who work in real estate enquiries have dropped 80 percent since January 2018. The main driver was the credit bubble that now is out of reach for most people. Prices in Us dollars for apartments must come down to reflect the new reality but most owners are holding out. Unfortunately there is no rainbow on the horizon and I see more of the same devaluation. Inflation and recession

 

[Bajo_cero2]

I'm asking what would be the right economic plan now considering all the factors? Wrangler and Pizzaguy have mentioned rewriting the tax code.

Well, this is interesting, the IMF is asking to go back to the K economy plan: to tax minery and soy as it used to be.
Besides that, the economy is going to crash because they were taking loans like crazy.
The one who had everything to fix the problem was Macri. He received the country unindebted. The 35% income tax is an emergency tax to pay debt. He had everything to abolish that tax, however, he dis everything to keep it for a long, long time.

 

[Bajo_cero2]

This is the root of all problems. The rest are details. Most will never understand this, and how can they? Argentines are addicted to spending with no remorse. And ultimately blaming it on someone else, of course.

The fiscal deficit is because Macri forgave tax to minery and reduced tax to soy. Simple.

 

[perry]

This is the root of all problems. The rest are details. Most will never understand this, and how can they? Argentines are addicted to spending with no remorse. And ultimately blaming it on someone else, of course.

The Argentinian people did not take on all the debt of 250 billion dollars . Their governments were in charge of the ship . I do not share your point of view that the normal people of this country spend money with no remorse . In general they are much less materialistic than australians and americans . Australians for example have one of the highest personal debts in the world.

https://www.finder.com.au/australias-personal-debt-reported-as-highest-in-the-world

 

[pizzadreams]

The Argentinian people did not take on all the debt of 250 billion dollars . Their governments were in charge of the ship . I do not share your point of view that the normal people of this country spend money with no remorse . In general they are much less materialistic than australians and americans . Australians for example have one of the highest personal debts in the world.

https://www.finder.com.au/australias-personal-debt-reported-as-highest-in-the-world

Not directly, but this country is a serial defaulter, and it is naive to think the people have had nothing to do with it, with the people they put in power and continue to support no matter what. I have said a lot already, and history is there for anyone to see.

And just because those two nations might be more materialistic it doesn't mean Argentines aren't. For instance, we need to take into account that Argentines have very little access to credit in relative terms, and their wages are much, much lower. What matters, I feel, is how much you spend in comparison to how much you earn. I don't know if you knew this, but Argentines are well known to be big spenders abroad in spite of the fact they're nowhere near the top as far as purchasing power goes.

 

[pizzadreams]

We're comparing people who earn, on average, $7000 a year with people that earn $35.000. It doesn't tell the whole picture, of course not, but it is something to take into account.

 

[pizzadreams]

One last thing. Picture just how well the average Argentine would be able to manage 90.000 pesos a month, an average Australian wage in arg currency. Kinda hilarious to even mentalize It, isn't it?

 

[perry]

Not directly, but this country is a serial defaulter, and it is naive to think the people have had nothing to do with it, with the people they put in power and continue to support no matter what. I have said a lot already, and history is there for anyone to see.

And just because those two nations might be more materialistic it doesn't mean Argentines aren't. For instance, we need to take into account that Argentines have very little access to credit in relative terms, and their wages are much, much lower. What matters, I feel, is how much you spend in comparison to how much you earn. I don't know if you knew this, but Argentines are well known to be big spenders abroad in spite of the fact they're nowhere near the top as far as purchasing power goes.

Still what has this do with the economic situation of Argentina ? The people did not borrow 250 billion dollars but the current government did . Argentinians who travel abroad are 10 percent of the population not the majority who live very dignified lives and only spend on the necessary . Materialism is prevalent in most societies to different degrees but certainly Argentina cannot compare to the USA or Australia with their addictions to the latest gadgets and keeping up with the jones . Here in Argentina and especially in the provinces people with money are very low key and not ostentatious , Of course this is tied to the crime rates and the need to keep a low profile but for many expats it is a breath of fresh air that one is not judged by the clothes , car , or luxury address one haves in Argentina but judged on his personality.