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Live streaming here: http://tn.com.ar/envivo/24hs
Blog article about it here: http://www.godlikeproductions.com/fo...age1987889/pg1
must read article by a US guy about argentinian crisis. excellent for Foreign REAL STATE TARDS.
Crisis Replay... Soon Argentina Will Be on Sale Again
By Ronan McMahon, editor, Real Estate Trend Alert
Thursday, September 6, 2012
Just over a decade ago, Argentina spectacularly unraveled with the biggest default in history – $100 billion.
Dollar deposits were converted to pesos. Then, overnight, the peg of one-to-one with the dollar was broken. The unpegged currency was immediately devalued. Savings were wiped out. Banks were set alight. And locals took to the streets in protest.
That crisis created the biggest buying opportunity of a decade. During the fire sales, you could have picked up a historic, high-end property in Buenos Aires or a vineyard in Mendoza for a song.
Today, Argentina is back in a bind. There is a strong possibility of another crack-up within the next year. And then we'll have the same opportunity we had a decade ago.
The signs are all there. The streets of Buenos Aires have recently seen the return of the backstreet currency exchange.
According to the official exchange rate, which is subject to capital controls, 4.4 pesos buys you a dollar. But on the street, people are happy to pay up to 6.7. Inflation runs at 25%. The purchasing power of an Argentine's peso savings is going down by one-quarter each year.
The government claims inflation is 9.9% and has outlawed calculating or quoting any other inflation rate. Forty percent of dollar deposits have been withdrawn from Argentina since last October. Now there are capital controls. You need special permission to move your dollars overseas.
To take a foreign vacation, Argentines have to apply to a bureaucrat for permission and explain where they got the money for the trip. And there are rumors that it will be made illegal to talk about the existence of the shadow market exchange rate for dollars.
But a lot of Argentines' dollars and pesos don't reside in bank accounts. Property transactions typically take place in special rooms in lawyers' offices, and they're cash deals. There's that much distrust of banks. They are used for day-to-day things like paying your electric bill. Not for your savings, though.
*snip*
Blog article about it here: http://www.godlikeproductions.com/fo...age1987889/pg1
must read article by a US guy about argentinian crisis. excellent for Foreign REAL STATE TARDS.
Crisis Replay... Soon Argentina Will Be on Sale Again
By Ronan McMahon, editor, Real Estate Trend Alert
Thursday, September 6, 2012
Just over a decade ago, Argentina spectacularly unraveled with the biggest default in history – $100 billion.
Dollar deposits were converted to pesos. Then, overnight, the peg of one-to-one with the dollar was broken. The unpegged currency was immediately devalued. Savings were wiped out. Banks were set alight. And locals took to the streets in protest.
That crisis created the biggest buying opportunity of a decade. During the fire sales, you could have picked up a historic, high-end property in Buenos Aires or a vineyard in Mendoza for a song.
Today, Argentina is back in a bind. There is a strong possibility of another crack-up within the next year. And then we'll have the same opportunity we had a decade ago.
The signs are all there. The streets of Buenos Aires have recently seen the return of the backstreet currency exchange.
According to the official exchange rate, which is subject to capital controls, 4.4 pesos buys you a dollar. But on the street, people are happy to pay up to 6.7. Inflation runs at 25%. The purchasing power of an Argentine's peso savings is going down by one-quarter each year.
The government claims inflation is 9.9% and has outlawed calculating or quoting any other inflation rate. Forty percent of dollar deposits have been withdrawn from Argentina since last October. Now there are capital controls. You need special permission to move your dollars overseas.
To take a foreign vacation, Argentines have to apply to a bureaucrat for permission and explain where they got the money for the trip. And there are rumors that it will be made illegal to talk about the existence of the shadow market exchange rate for dollars.
But a lot of Argentines' dollars and pesos don't reside in bank accounts. Property transactions typically take place in special rooms in lawyers' offices, and they're cash deals. There's that much distrust of banks. They are used for day-to-day things like paying your electric bill. Not for your savings, though.
*snip*
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