Now the banks are the target

[toongeorges]

Apparently, investment is going down in Argentina, but the government does not want to know about it and therefore wants to force the major banks to lend (at an interest rate lower than the inflation):

http://online.wsj.com/article/SB10001424052702304550004577507431406267356.html?mod=googlenews_wsj

 

[PhilinBSAS]

Yes been picked up by the Herald

http://www.buenosairesherald.com/ar...b-to-force-banks-to-give-out-investment-loans

This is the essence of self deluding and mendacious neo-Peronism: offering empty promises and vindictive threats that cannot deliver.

 

[Dublin2BuenosAires]

Yes, poor banks. God bless them....

 

[nicoenarg]

Whether banks are "poor" or not is a different matter but it's a dangerous move nonetheless.

Banks are being forced to lend more, keeping in mind that they just started the housing projects, I'm reminded of something that recently crashed the markets an economies around the world. Government tells banks to lend to people so they can create jobs, banks lend knowing the government has their backs if anything goes wrong, and people take loans wanting a house as big as the other guy even though they know they really won't be able to pay it back if anything at all happened.

But of course the people don't worry, just like the banks, they know if they can't pay back the loan, they can just declare bankruptcy...let someone else pick the damn tab. And the cycle continues.

It's not just poor banks, it's poor everybody BUT the government!

 

[surfing]

Apparently, investment is going down in Argentina, but the government does not want to know about it and therefore wants to force the major banks to lend (at an interest rate lower than the inflation):

http://online.wsj.com/article/SB10001424052702304550004577507431406267356.html?mod=googlenews_wsj

WHAT inflation?
http://www.lanacion.com.ar/1487674-abal-medina-cortemosla-de-una-vez-el-indec-no-esta-intervenido

 

[Gringoboy]

As per usual, The Herald says absolutely nothing of substance in reference to this 'passing the buck' move by CFK.
Has that paper got it's head up it's a**e?

 

[Johnny]

As per usual, The Herald says absolutely nothing of substance in reference to this 'passing the buck' move by CFK.
Has that paper got it's head up it's a**e?

Not so unusual really. Editorializing is ordinarily best left to the Editorial page. I'm sure Gambarotta, and maybe others, will have plenty to say about it this coming Sunday.

A small blurb from the New York Times:

http://www.nytimes.com/aponline/201...s/ap-lt-argentina-forced-lending.html?_r=1&hp

 

[Iznogud]

The Banks are not the targets, they're partners in crime. It's always about OPM.

Been there, endured that, they kept my shirt.

 

[willwright]

Sounds like the government has a great idea. Make the banks lend at below cost, they can make up the difference with volume. Only in Argentina. Sounds like a surefire to put them all out of business, but maybe that's the idea.

 

[notebook.fix]

Hi GB, it's interesting that you can smell the 'Rat' .., something that a lot of people may miss with the BA Herald is that it's a pro K news media entity. It is privately owned by the Ambito Group but according to sources it would not exist without direct K Government funding.

Click on the graphic on this link to see just how much media influence the Ks really have.
http://www.lanacion.com.ar/1468628-otro-grupo-de-medios-en-manos-oficialistas

As per usual, The Herald says absolutely nothing of substance in reference to this 'passing the buck' move by CFK.
Has that paper got it's head up it's a**e?