Hello Recession, Goodbye Inflation

[Daniel82]

I think it’s fair to say that historically Argentines have not had the kind of mortgage/rent related costs/debt as in the US and thus they’ve been able to weather the prior storms better, but today in 2018, many of my peers (mid 30s to late 40s professionals) do have a mortgage or pay rent, and not only that but went apeshit crazy with the credit boom of recent years and have taken costly vacations abroad, bought the plasmas, the cars, etc, and are now stuck in situations not unlike US friends when the going gets tough.

 

[Phatbuddha]

Theres been no "Credit boom" Here ..... Come on now ... Cars Maybe so ..... But again, Most DONT have Mortgages or pay rent .......
This is the game changer ....

 

[toongeorges]

how does one make money from this? Great question and I invite forum members to give some great money making ideas and suggestions.

I do not know about Argentina, but in Europe during the 2008 crisis discounters and cheap supermarkets increased their marketshare. People have to keep eating and buying necessary stuff, only they were more careful not to spend more than required.

Maybe there will be more visits to McDonald's instead of fancy restaurants?

 

[camel]

Maybe there will be more visits to McDonald's instead of fancy restaurants?

Wait, McDonald's is fancy, right?

 

[Daniel82]

Theres been no "Credit boom" Here ..... Come on now ... Cars Maybe so ..... But again, Most DONT have Mortgages or pay rent .......
This is the game changer ....

I beg to differ. Mortgages, Amex cards (and other cards with pretty impressive credit limits when you consider how little the person earned) were being given out like hotcakes up until recently.

 

[Phatbuddha]

Sorry Im not buying the "Impressive Credit Limits" to people with no Credit Rating , your making Buenos Aires Sound like Dubai and its the opposite.
The biggest expense most Argentinians have (Apart from a Barrow load of Cash that they putdown on a house or Apartment) is on a car .
Credit cards are credit cards and can be used (and Abused) in the good times and the bad. Argentinians are savers and hoarders , its ingrained into them and owning a property is a right of passage .
Sure theres gonna be some pain with the pensioners and the younger un established age group - But on the whole the majority are property owners (Outright) and are not owned by the bank ,

 

[perry]

Theres been no "Credit boom" Here ..... Come on now ... Cars Maybe so ..... But again, Most DONT have Mortgages or pay rent .......
This is the game changer ....

This is not true at all . In the last three years close to 40% percent of all homes were brought with credit not to mention the very high costs to maintain an apartment ( even if you owe the property) Condo fees are the highest in the world for wages earnt un Buenos Aires and over 25% of citizens are now in arrears to pay them .

 

[perry]

I beg to differ. Mortgages, Amex cards (and other cards with pretty impressive credit limits when you consider how little the person earned) were being given out like hotcakes up until recently.

This is so true over 45% of all properties sold from 2016 to Febeuary 2018 were with credit creating a huge bubble in prices.

 

[Phatbuddha]

Lets watch the Market then ...Because that is a sizable amount - Total agree on the Expenses, Its out of control ...
Im sure that Argentina will continue to get squeezed and will shake out a lot of people, so .... like before , there should be a flood of properties coming on to the market with people wanting to sell for cash .... and i guess the Banks will just take back the Property from the people that Mortgaged ...
....Somehow that doesn't sound right ..... ?

 

[Daniel82]

Sorry Im not buying the "Impressive Credit Limits" to people with no Credit Rating , your making Buenos Aires Sound like Dubai and its the opposite.
The biggest expense most Argentinians have (Apart from a Barrow load of Cash that they putdown on a house or Apartment) is on a car .
Credit cards are credit cards and can be used (and Abused) in the good times and the bad. Argentinians are savers and hoarders , its ingrained into them and owning a property is a right of passage .
Sure theres gonna be some pain with the pensioners and the younger un established age group - But on the whole the majority are property owners (Outright) and are not owned by the bank ,

I almost feel like you are talking about a totally different country and/or (and perhaps this is more the case) have dealt with a different demographic of people than I while in Buenos Aires.

While it’s true that maybe the older generation most likely outright own their homes because yes, to this generation, owning was indeed a sort of right of passage to the point where the ‘garantia’ system would work so well when the youngens wanted to get their own place.

Flash forward a few years and a few generations, and many if not most of the people I know living in Buenos Aires (people ranging from late 20s to late 40s, working in a range of decent to excellent jobs as lawyers, analysts, tech jobs, finance, etc) are either renting or have taken on a mortgage. Some have even taken on extended mortgages if they met the age requirement for ‘hipoteca joven’ product, and the Argentinean equivalent of a jumbo loan (a banker friend of mine who moved into a ‘country’ of San Isidro)

Also, in regards to credit, I reiterate that some banks were giving them out like hot cakes for awhile, a friend of mine who is a cab driver was able to finance a lavish trip to Thailand, much to my astonishment, and my cleaning lady used the financing option of a travel agency to go to the Dominican Republic with her family of 5.

I do not think most Argentineans of my generation are horders and savers as you say. I honestly think most of them live extremely ‘al dia’ and now more so that the Peso currency is so devalued.