Significant news about peso exchange rate

[expatinowncountry]

That is exactly the kind of hyperbole that was used to scare the politicians into voting of this swindle. Not a tough call at all. Some would have sunk some would have swum. The "whole system" would have NEVER gone down. What you are talking about is disaster capitalism and the "shock doctrine".

And you base your assessment on what? At least I gave you examples of why is important to keep financial inter mediation alive. You have no idea of how hard is to deleverage...

If we don't learn from history, we are doomed to repeat it.
I recommend a search in Amazon.com -> Great Depression.

 

[GS_Dirtboy]

Sorry, economics is not a zero sum game, have you become Argentinean?

Yes, you are right. I used the wrong metaphor (it was early and no coffee yet). Permit me to rephrase. The laws of economics always work. I think of it like the laws of physics and energy. Though a piece of wood can't do anything on it's own there is latent energy stored inside. When heat is applied that energy is released. In economics I think of latent energy as those ideas that, when given capital to evolve, release their energy. Yes, both sides can win. I'm sure there are holes in the way I've tried to explain it.

 

[camberiu]

Maybe you could try to give a more balanced view of market failures versus government failures so your statement does not sound ridiculous in the light of what we have experienced in the last few years...

I see...so 2008 happened because of the markets....So, the artificially low interest set by the fed since 2000, the equal housing act passed by Congress, runaway government spending since 9/11, Fannie and Freddy, none of that had anything to do with the 2008 crisis? It was all due to unchecked capitalism?

 

[surfing]

And you base your assessment on what? At least I gave you examples of why is important to keep financial inter mediation alive. You have no idea of how hard is to deleverage...

If we don't learn from history, we are doomed to repeat it.
I recommend a search in Amazon.com -> Great Depression.

If you believe the bailouts were the right decision, then nothing I can say is likely to change your mind and quite frankly I don't have the energy to try. As for the great depression --- that was a tea party compared to what we will see in the next decades. In any case we are way off topic here and I am here only to discuss what is happening in Argentina.

 

[expatinowncountry]

I see...so 2008 happened because of the markets....So, the artificially low interest set by the fed since 2000, the equal housing act passed by Congress, runaway government spending since 9/11, Fannie and Freddy, none of that had anything to do with the 2008 crisis? It was all due to unchecked capitalism?

I was waiting for you and I was actually worried that you did not show up. Welcome!

As I said, there are both market and government failures and nothing is white or black here. Recognizing this is a good starting point.

How the average citizen (not you!) feels about them depends on the sort of crisis they have to go over in their life spam. Probably people growing in the 1930s had little confidence in markets and trust the government way more than those who grew up in the 1970s and 1980s. We are in a new face and after 2008 people distrust markets and with good reasons. Of course, we know that governments will probably screw things one more time with inflation (they will need it to reduce the real value of their debt) and over regulating.

Good that you name examples of government intervention what recognize that markets do not work in a vacuum and need some sort of soft infrastructure (for instance property rights law).

And yes, some of those decisions made by governments (the US in particular) may have contributed to the crisis in 2008 but it was not only the government, the private sector (and in particular the financial industry) has a large share of the responsibility (in my opinion).

 

[dennisr]

and the beat goes on and on ......

http://www.cronista.com/finanzasmer...lue-desde-maana-valdra-510-20120603-0002.html

 

[BienTeVeo]

Just got back from a weekend off the grid - no internet, no newspapers, no television, and no idea. I'm just learning about this latest twist. So now we have the official rate and the official unofficial rate? The infinite regress will stop wherever the buck stops!

And just so I have this straight... what was as recently as 48 hours condemned most vociferously as illegal and unpatriotic is now negotiable? As they say, Esto es un país muy, pero muy especial.

 

[trennod]

I am so confused. El expatriado has nailed it, just dont understand why they would sell dollars at $5.10, unless they are being forced by the government or there is something shady going on under the table. Unlimited access to the printing press?

 

[earlyretirement]

So I just heard from my money manager there in Buenos Aires. He doesn't believe this will work. He said that the government will attempt to bring down the rate by selling tens if not hundreds of millions of dollars on the blue market and pressing the main operators (Giovinazzo, Alhec, Transcambio, etc) in the market to push down the exchange rate to what they want.

I'm really curious to see what happens this work. Only in Argentina!

 

[trennod]

So I just heard from my money manager there in Buenos Aires. He doesn't believe this will work. He said that the government will attempt to bring down the rate by selling tens if not hundreds of millions of dollars on the blue market and pressing the main operators (Giovinazzo, Alhec, Transcambio, etc) in the market to push down the exchange rate to what they want.

I'm really curious to see what happens this work. Only in Argentina!

But isnt this only a short term fix? I mean, if this is their approach to bring down the black market rate, unless they are going to continue selling their $ reserves...which obviously isnt sustainable....