Two crazy people: Argentina bonds pop as investors cheer Milei-Trump prospect

[MilHojas]

https://www.reuters.com/markets/rates-bonds/two-crazy-people-argentina-bonds-pop-investors-cheer-milei-trump-prospect-2024-11-06/

Argentina's dollar bonds jumped in early trade on Wednesday and the country's risk index dropped sharply, with investors cheering the prospect of closer ties between libertarian President Javier Milei and newly-elected U.S. ally Donald Trump.

 

[sergio]

https://www.reuters.com/markets/rates-bonds/two-crazy-people-argentina-bonds-pop-investors-cheer-milei-trump-prospect-2024-11-06/

I fail to see that they have much in common other than their showmanship. Trump is a protectionist, totally opposed to unrestricted international trade. He wants industry to return and stay in the US. He's a non interventionist who wants an end to US involvement in Ukraine and a lesser role in NATO. During his first term he did not impose austerity; he increased the deficit. He has promised not to cut entitlements like Social Security and Medicare, the exact opposite of what Argentina's leader has been doing. I can't see Trump eager to finance Argentina.

 

[Ries]

I fail to see that they have much in common other than their showmanship. Trump is a protectionist, totally opposed to unrestricted international trade. He wants industry to return and stay in the US. He's a non interventionist who wants an end to US involvement in Ukraine and a lesser role in NATO. During his first term he did not impose austerity; he increased the deficit. He has promised not to cut entitlements like Social Security and Medicare, the exact opposite of what Argentina's leader has been doing. I can't see Trump eager to finance Argentina.

So true. Milei claims to want free trade, although he hasnt managed to change anything due to his ineptitude with retail politics, beyond announcing a cut in the import tax sometime in the future. Trump, on the other hand, is promising 30% to 200% tariffs. Ideologically all they seem to share is a love of grand promises of pie in the sky by and by, and ridiculously fake hairdos.