Lehman Bros. in Bankruptcy/B of A buys Lynch

kenmtraveller

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I am no economist, but my guess would have been that argentina would weather a global finance meltdown pretty well. It's a commodities exporter, and while commodities are down over the last few months, they're still up hugely over the last few years. It's disconnected from the global financial system. Well, isn't that a good thing now? Argentine banks probably don't have a lot of money invested in US mortgages.
It seems to me that nations that have been running trade deficits, and nations with service-oriented economies, will do worst. Or, am I missing something?Ken
 

bigbadwolf

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"kenmtraveller" said:
I am no economist, but my guess would have been that argentina would weather a global finance meltdown pretty well. It's a commodities exporter, and while commodities are down over the last few months, they're still up hugely over the last few years. It's disconnected from the global financial system. Well, isn't that a good thing now? Argentine banks probably don't have a lot of money invested in US mortgages.
It seems to me that nations that have been running trade deficits, and nations with service-oriented economies, will do worst. Or, am I missing something?
You are correct. Thus, for example, the British Chancellor has said that Britain faces the direst situation in sixty years -- and considering the travails which have afflicted Britain over the last few decades, that's quite something. Commodity exporters will fare better, but even they will be affected by the tectonic change in the international trading and financial system that will -- that must -- imminently change (i.e., over the next few years). Incidentally, US hegemony is probably over and it will be jostling for influence, with reduced means, with up-and-coming powers.
 

Stanexpat

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Folks are correct that commodity producers should be less affected. That assumes you have a responsible government that isn't spending well beyond its means like what's going on in Argentina. The only way they can make this house of cards from collapsing is serious reining in of spending which they have been unwilling to do in the past. Some steps are being taken as the following link indicates but this is by itself won't solve the problems.
http://www.iht.com/articles/ap/2008/09/15/business/LT-Argentina-Budget.php
 

Rad

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"Dudester" said:
I need some quick advice. Lehman Brothers files for Bankruptcy and Bank of America is buying Merrill Lynch. I have a lot of money in Morgan Stanley and Fidelity. Should I pull it all out ASAP or sit this out..... Is there ANY chance Morgan Stanley is gonna follow in the foot steps of Lehman Brothers?? I hear it mentioned a lot. How The F*** did this happen !?!?! Who's watching the "hen house"???? Really appreciate any info, Thanks, Dudester
Maybe it's time to diversify.
http://calculatedrisk.blogspot.com/2008/09/morgan-stanley-ceo-need-partner-or-not.html
 

perry

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Stanexpat have you ever said anything about Argentina that is not doom and gloom? I disagree with you and in 3 years time from now when the situation is clearer we will find that Argentina is in a much better position that most of Europe and USA. Remember this country is completely self supporting and with the capabalities to feed the whole world . In times of trouble Argentina has done very well as it is technically a neutral country and will not involve itself in the upcoming wars that have the possibility of destroying the world.
We are at the most dangerous juncture that the world has seen for over 50 years with the worlds financial systems collapsing. impeding wars in Iran , Poland and Ukraine over Crimea. George Soros has said that this is the start of a great depression which will be worse than the one of the 1920s. Is he right I do not know but he has proven himself to have a excellent track record predicting world events.
Regarding Argentina and the worlds events of course it will be affected but in the event of another Great War there is no safer and more viable country to live on this planet and in our history it has been that absorbing millions of displaced immigrants from Europe who have prospered here.
 

perry

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Quote Stan
That assumes you have a responsible government that isn't spending well beyond its means like what's going on in Argentina.
Ask yourself does that not sound hypocritical when the USA goverment is spending billions of dollars a day on the Iraq war and has spent already a trillion dollars on this most unsucessful venture.
Also American society is the most indebted on the planet with a history of access to easy credit for houses and cars that it has no hope of paying back unless they worked like crazy and very rarely saw their children . This easy credit perpetuated by the American financiers has created the conditions for this world wide financial collapse .
Please look at your own backyard and see that the pack of cards are falling and fast .
 

Stanexpat

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Pericles, I only reflect on what I have personally experienced or read about from a variety of sources. I have not said the U.S. is in great shape and fact I believe its headed for it worse economic situation since the great depression(see my comments under Palin interview posted yesterday).
You seem to believe anybody that questions what goes on in Argentina is making some sort of personal attack against the country. You keep making statements about the glorious future of Argentina but ignore the present and past.
I would agree that Argentina could have a bright future but believe discussing the many problems there that are preventing this happy outcome serves more to make it reality than pretending they don't exist.
I think perhaps you have been there too long and have lost perspective. You need to get out an travel and see how the rest of the world lives. I think if you did the shortcomings there would be more obvious to you.
My point in this thread is that the economic slowdown that is spreading around the world will impact the commodity producers as demand falls. The government there is run by morons who make GW look smart in comparison. They have increased government spending to unstainable levels and have completly mismanaged the economy, now suffering on 25% inflation(unless you are one of the 3 people left in the country that believes the government statistics). Falling commodity prices will result in falling tax revenues which will put even for pressure on the unstainable economic model installed by the K's that's doomed to failure.
A lack of confidence in the government and its policies has led to widespread speculation and belief by many knowledgeable people that Argentina is heading for trouble. Perhaps you could cite some sources or suggest some readings that support the idea Argentina is headed in the right direction today. I don't think you will be able to provide any.
 

perry

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The original post was about Lehman Bros Stanexpat and then you have turned it originally into a Anti Argentina tirade with comments that our country was about to collapse. Am I the only one that finds it ironic that Lehman Bros has been attacking Argentina and its government policies and saying that is was on the verge of collapse when they have gone under themselves.
 
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