Who Keeps Their Savings In A Metal Box?

[goodboyjakey]

Just curious why the Kirchners would put legitimate savings/inheritance in a safety deposit box rather than in an account that earns interest?

Unless......

 

[che]

They were diversifying. They already had plenty of other cash stashed luxury boxes in Miami and NYC
http://www.miamiherald.com/news/business/real-estate-news/article90028812.html

Why not a metal box in a bank. I Imagine they have other boxes under their hotel and other real estate.

 

[polostar88]

What account earns interest?

 

[UK Man]

Why not a metal box in a bank. I Imagine they have other boxes under their hotel and other real estate.

I hear the sales of metal detectors has rocketed.

 

[Noesdeayer]

I don't remenber exactly but along with the USD 6.6 m in cash in Florencia K.'s metal box in Banco Galicia the Clarin story talked about some CDs for large amounts.Spreading the wealth,i guess.

 

[mulderfox]

the economy is rather basic in argentina. people stick to what they know and trust. having usd in a box is real money. having a bank account is having a bank saying they have and protect your money. so you must trust the bank. for a lot of people is not ancient history, less than 2 decades ago the banking system colapsed and a lot of people never got their money back. google it as "corralito". so this is normal here. i`m not saying this is the kirchner case but i`m giving you some context

 

[Noesdeayer]

mulderfox:
I lived here thru the "corralito":It wasn't that people didn't get their money back.What happened was called "pesofication".
The dollar deposits were changed into AR$.But,yes it was a nightmare!
The Kirchner case is simply the routine Peronacho "rip off" caper that has been going on for the last 80 years.

 

[ElQueso]

As I understand what happened with the Corralito, it wasn't just a simple pesofication, but rather fraud committed on the people by the the government under the guise of legal operations. My first introduction to this was my barber, who had a Dollar account, and a mortgage on a house denominated in Dollars. The government declared a conversion to pesos from dollars everyone's account and within a day or so the value of the peso went from 1-1 with the dollar to 3-1, which resulted in a net loss of some 66% or more of his (and everyone else who had Dollars) actual value. With his mortgage, it was denominated in dollars when he took it out but the conversion took place 1-1, effectively raising the cost of his mortgage times 3.

Both things seemed quite strange to me, but I've had a number of other Argentinos confirm that they were affected like this as well.

Therefore, to answer the question of the thread, one reason why people here keep their savings in a metal box, or under their bed, or buried like treasure (I know someone who does this!), it's because they don't trust their government and the banks.

Of course, I don't believe for a moment that Cristina, and her children as well, are innocent of robbing the State, but this money was so obvious that I think they can probably explain it or Florencia may not have been so insistent that the government come and inspect her safety deposit boxes and such. But either way, I do find it interesting that the ex-head of state and her children apparently didn't trust the government enough to keep it in a savings account...they must have known something about trustworthiness, or the lack thereof.

 

[Noesdeayer]

El Queso :
Of course,it wasn't just a pesofication.I was trying to keep it simple for brevity's sake.It wasn't just simple fraud either.Argentines have never had faith in their own currency because the monied classes have always used some foreign other to infllate and then move their wealth in and out to make a profit.
This is the root of the saying "Rio revuelto,ganancias de pescadores"---"A choppy river is great for fishermen in the know".
So Cavallo thought up the USD 1= AR$ ! peg to give some sort of order to the country after the hyperinflation of the late '80s under Alfonsin who gave up and resigned.EVERYONE KNEW that it was a ruse and a trick :It held water for about 11 years until it busted wide open as it was destined to..
When the" haves " in Argentina begin to demand an economy based on a sound fiscal ploicy and productivity things will start to change for "the have nots" .
That time may be soon at hand.