Will the Economic Crisis in the USA Effect Argentina?

Europa and the US is føkked.

Just look how the stock market tanked _AFTER_ the 'No Banker Left Behind' Bill was rammed through in CONgress.
 
I think Argentina will be negatively impacted. The Economist magazine has a good summary of the situation in this weeks edition(Link Below)

The credit crunch in Latin America | Keeping their fingers crossed | The Economist

I would take a negative view of real estate as an investment anywhere including Argentina. Why would people believe there is not going to be a correction after several years of significant appreciation if problems do develop in the economy there? If I were going to buy real estate I would say the U.S. would be a far better bet as prices are significantly lower in many places than a couple of years ago, but it will still fall for a year or two more. I would rather buy in a market after a correction rather than at or near the top which could be the case in Argentina now.

I remember a year or so ago people were writing in saying that real estate in big cities like London and New York hadn't been impacted and therefor B.A. wouldn't as well. Well New York and London today are falling.

Similar arguments were made over the last few years for markets all over the world stating that for this reason or that some market was unique and wouldn't be impacted. In every case I can think of these arguments have been wrong.
 
Thanks for the mention on the spelling Austin. I tried, but unfortunately can't change the title only the words below it - can't believe I did that.

Pericles, Stan, and Rad, thanks for the very informative comments - appreciate it

Dudester
 
Smartypants, I almost always agree with you as you know but I think what you mentioned happened because of the horrible "9 month straight job loss" report. I too thought the Dow would be up 300 to 400 points after Congress passed the too late, too little bill today. I think this problem is much bigger than we think......
 
pericles said:
Many here believe that the world economic situation will affect prices of Real Estate in Argentina and up to now that has not shown itself to be true.
The market here is 80 percent cash and family owned . There are few people with mortgages meaning less desperate sellers. Many sellers now are pricing their properties above market rates and waiting for a sale. In some areas this has become ridiculuos especially Palermo Soho and San Telmo.

I believe that properties will increase in price as demand in Buenos Aires is high and supply is low due to the new laws from AFIP implemented in the beginning of 2008.

Since the crash in the USA of the last week more dollars have been transferred into Argentina than for many many years. Overseas Argentines are scared to hold onto their assets in United States and Europe and are bringing back their money to reinvest in Argentina which for them may be a safer bet .

A lot of that investment will be in Real Estate as in a country like Argentina it has been the most reliable and safest purchase.
Click to expand...

I think you are wrong pericles, like you said the market here is 80% cash and family owned but only 10% of the people in argentina can afford to by real estate at current prices and then maybe another 10% being purchased by foreigners, this means 80% of the realestate market has to adjust the price so that the average Argentinian can afford it, that means LOWER price on 80% of the real estate!
 
I wish like all here that prices would go down as many would like to buy in Palermo, Barrio Norte and similar neighborhoods. I fully agree DA in your comments that only a small percentage of Argentines can afford to buy in these neighbourhoods . Prices have risen here mostly from local demand . If demand continues and supply is limited prices will remain stable .

Judging Argentina like USA, Spain. United Kingdom and other countries is plain wrong . Sure no country is immune from world events but also every country has its own economy that is completely independent of the world.

When Argentina collapsed in 2001 the rest of the world was booming .
 
ok, pericles I hope you are wrong. And when is the argentinian people(middle class) going to be able to buy their own home?
 
When Argentina collapsed in 2001 the rest of the world was in post dot.com / post 9/11 recession. Later, Argentine exports were booming thanks to a World-wide boom.
Today, USA, Canada and Europe are contracting and China is slowing down. How could Argentina not be affected by that?
 
Noone is saying that Argentina will not be affected as we are part of the world community . What I am saying is that USA and countries that are interconnected to the American financial system will be the most problematic. If Mcain wins there will be a higher chance that the USA will fall into a deep depression.
 
You must log in or register to reply here.
Back
Top