Wells Fargo’s international commentary

[carride]

Summary​

Argentina is back on the brink of default, or depending on who you ask, currently in default. Credit rating assessors have formed different opinions regarding recent sovereign debt management operations, but the takeaway is Argentina's creditworthiness is deteriorating once again. Weak fundamentals, in particular a lack of external buffers and depleted FX reserves, lead us to believe the peso will be devalued this year, most likely after elections in October. That said, even after the peso devaluation, the currency is still likely to be overvalued as a result of capital controls, evidenced by the gap between the official exchange rate and the unofficial, parallel market, “Blue-Chip” exchange rate for dollars.

Wells Fargo - Argen-teetering...

wellsfargo.bluematrix.com

 

[sts7049]

interesting article. everyone hold onto your butts come election time...

 

[Quilombo]

• Edesur collapse
• Poverty steadily climbing towards 50%
• Rosario is a failed state
• Zona Sur is so unsafe that cops don't even circulate
• 103%+ inflation and climbing
• $410 pesos per dollar
• YPF and INDEC lawsuits in the US and UK
• Berni lynched
• Election year

I wonder why people doubt the creditworthiness/general economic stability of Argentina?

 

[Redpossum]

• Edesur collapse
• Poverty steadily climbing towards 50%
• Rosario is a failed state
• Zona Sur is so unsafe that cops don't even circulate
• 103%+ inflation and climbing
• $410 pesos per dollar
• YPF and INDEC lawsuits in the US and UK
• Berni lynched
• Election year

I wonder why people doubt the creditworthiness/general economic stability of Argentina?

I think we need to argue again about the meaning of the word "lynched". He's still alive, and not even seriously injured. A bloody nose isn't what I'd call being lynched.

 

[Rob S]

Summary​

Argentina is back on the brink of default, or depending on who you ask, currently in default. Credit rating assessors have formed different opinions regarding recent sovereign debt management operations, but the takeaway is Argentina's creditworthiness is deteriorating once again. Weak fundamentals, in particular a lack of external buffers and depleted FX reserves, lead us to believe the peso will be devalued this year, most likely after elections in October. That said, even after the peso devaluation, the currency is still likely to be overvalued as a result of capital controls, evidenced by the gap between the official exchange rate and the unofficial, parallel market, “Blue-Chip” exchange rate for dollars.

Wells Fargo - Argen-teetering...

wellsfargo.bluematrix.com

Great info. Thanks. This is why I just rent.

 

[Quilombo]

I think we need to argue again about the meaning of the word "lynched". He's still alive, and not even seriously injured. A bloody nose isn't what I'd call being lynched.

I meant it in the Argentine sense which is very different than ours of course. I wish they'd use a different word in the media, but far be it for me to police speaking Spanish in my adopted home.

He got off easy, but I do appreciate the look of pure fear, the kind the inhabitants of Provincia experience thanks to his feckless "leadership" as they're robed, raped, or killed:

 

[toongeorges]

Once again, the bomb will explode after the elections, so Kirchnerism can say they were better than the government that followed them and they can be back in power in 4 years time to start another destructive cycle.