Carrefour closes 387 stores in Argentina

The situation in Argentina is getting worse by the minute. The state of siege declared by the government is not working. There is a feeling that De La Ruas head might be the next price the mobs want. Even Shakira may take a hike from Jr.

Carrefour, a store established in the carretera Duarte corridor in Santo Domingo has closed 387 stores in Argentina because the government cannot guarantee their security.

In real terms, there is no solution to the Argentina mess. Spain is no longer willing to help. World Banks want nothing to do with the country except that they pay their overdue loans. The IMF has practicly given up. The only solution would be total forgiveness of their foreign debt. Argentinians will be paying forever the interest on their junk quality bonds, almost triple what Dominican sovereign bonds are paying.

No Latin country has ever had a crisis like this with their economy. Lets hope the infection does not spread.

TW

Forgiveness is not the answer

It will only set a precedent that encourages other countries to follow the same path. Better to let them default and suffer the consequences. Debt forgiveness, or in this case, capitulation would not encourage others to get their macroeconomic house in order.

In the end, default+consequences is better than forgiveness.

Re: Forgiveness is not the answer

Too right Loren. Last week the US congress applauded the decision not to grant Argentina a bail out plan. That is one of the reasons that the mob are burning McDonalds one by one. Burger King have also closed all their restaurants. Brazil is the largest economy in Latin America that commands a greater influence on the rest on the continent. Argentina holds a marginal position on the overall picture. This is a lesson for the DR to control it's foreign debt.

What is the answer???

I deal with many immigrants daily,in my work,including Argentines and they are flocking to South Florida in droves.
Can the tattered US economy deal with yet another wave of immigrants?
Any of you politico types have a plan or idea to pull these
people out of the hole there in?
I don't profess to be, by any means, knowledgeable in this
type of thing, but there must be some sort of international slush fund, a grant not a loan to bail them out of this quagmire(last thing they need is to owe more money).
Any thoughts?

Grant = Forgiveness=bad

"Can the tattered US economy deal with yet another wave of immigrants?"

Argentines seem to prefer Spain and Italy to the U.S. Recently I read in the Wall Street Journal of long lines snaking around the Italian Embassy, as with over 40% of Argentines claiming Italian heritage they qualify for Italian Citizenship (so it has been reported). Nevertheless we certainly will see some seeking refuge here from the economic downturn.

We have received refugees from Cuba, Nicaragua, Haiti, Somalia, Europe, Asia and the Pacific during good economies and bad. The Argentines should they come, will not hurt the U.S. economy and in the long run will help, just as the Cubans have done in South Florida. Anyway, there is not enough unrest in Argentina to cause a huge exodus of the type that would cause an immigration "flood."

The last thing we or anyone should do is to grant Argentina free money at this time. In the long term this would be disastrous as it would encourage this type of mismanagement in other countries. Once the precedent is set, what would prevent other countries from following the same path and then saying: "bail me out like you did Argentina?"

The problem with many international organizations is that in their well-intentioned attempts at saving bankrupt countries they end up worsening the problems. Argentina should be offered restructuring or allowed to default. Countries rarely suffer the consequences of taking on too much debt and this encourages the reckless behavior. They are sometimes allowed to borrow at artificially low interest rates because lenders know that someone will rush to bail them out. Let a couple default and future interest rates will more closely reflect the true risk of borrowing.

Argentina is in for a painful lesson and there will be lots of suffering. Better an acute trauma than a chronic affliction though.

Let this be a lesson for the future of Argentina, and for all other countries rich and poor, reckless with their debt loads.

repeating your mistakes

1. A country shows some economic promise. 2. Inflation getting better. 3. World Banks, international banks rush in to lend money. 4 Corrutpt politicians and businessmen STEAL most of the borrowed money. 5. Debt payments come due. 6. Politicians raise taxes. 7. People get mad. 8. economy gets worse. 9. Treasury (politicians) print a sh*t load of money to pay the debt. 10. Interest rates rise. 11. Inflation goes out of control. 12. Currency collapses. 13. Country is toast for years to come.

Is it any wonder that Latin countries have seasonal coup d'etats?
The Dominican republic is between stages 4 and 5. For thsoe of you who care and live there, please do something before its too late.

A good start... *PIC*

For those that are truly interested in what has happened here and what can potentially (probably) happen in the D.R. I suggest some very captivating reading for you. The author is a Peruvian and has a very interesting perspective that I must say I agree with once I purchased and read the book. He has pegged a lot of what you see going on in the D.R. with land issues, bureacracy, etc.

Why does it cost $1600 + legal fees to incorporate a company in the D.R. where in most U.S. Jurisdictions it costs < $100 takes less than 1 day and needs no lawyer to be done properly?

Why are most residential real estate transactions in the U.S. done (depending on what part of the country) without a lawyer yet on this very board we hear horror stories of people who tried to cross all their T's and dot all their I's and hired law firms but still end up in hot water?

Why is the Dominican Electrical situation such a fiasco?

Why are the governments Sooo bad throughout most developing countries, not just the D.R.?

You may not agree with De Soto (or me, for that matter) but I found his arguments compelling and you will see the Argentina situation with new insight. De Soto presents some very salient ideas on the land situation in the D.R. and the immense untapped wealth latent in the country.

You can read chapter one online. Follow the link http://www.ild.org.pe/tmoc/cp1-en.htm
For Spanish, click here:
http://www.ild.org.pe/tmoc/cp1-sp.htm
Also available in Dutch, Chinese, Portuguese, Russian. Go to www.ild.org.pe

I do not belong to this guy's organization and am not affiliated with him in any way. I just read the book and think it is applicable to the Argentina and the D.R. situation, and others. (that is my disclaimer)

This miserable President left everyone holding the bag. If he can escape in a helicopter then he is not poor.

Argentina is only the beginning of a much greater mess that will ensue in Latin American, you can only steal so much from a country.

Latin American history is ripe with these type of incidents.

Re I have the answer

The answer is to let this snob nose WW2 Nazi sympathyzer country go down the tubes. I know a Dominican person that went to Argentina and was treated like a second class citizen. I was told that they are very prejudice with people of color. Unlike Brazil wich have a diverse ethnic population Argentina are made up of Caucasian European stock that are mostly Italian.

Re: How about ..............

They need another like Peron and his hooker Evita to pull them out. I hope Italy take them all back.

Where have you been Scaramooch?

I was thinking the other day, I haven't seen a post from you for a long time.

Re: Where have you been Scaramooch?

Check your e-mail

Ahhh..... Scaramooch is back. Missed crossing daggers with ya!
Sad situation, Argentina. Pero.... a stark warning to the nutty farmer in the Dominican palace, not to mess with foreign debt and not match the peso to the dollar.
We Dutch, good folks that we are, have managed to save at least one Argentine gal from the misery. She's a blonde babe by the name of Maxima Zorreguieta and .... marrying the Crown Prince of the Netherlands on 2nd february next year. Her daddy was a bad boy during the Videla-regime and will not be permitted to attend the wedding (this by popular demand of the population).
So, a couple of very busy months ahead preparing for this thing.
On the other hand: Some Argentines are digging up grandpa's hidden treasures to see if they have Dutch blood in there somewhere. Next they scramble to the nearest embassy to claim a passport and one-way ticket to Amsterdam.

Dont cry for me SHAKIRA!!!!

Can anybody guess what Shakira is going to do now with her boyfriend De La Rua JR.? Take a guess?
TW

Re: Dont cry for me SHAKIRA!!!!

who cares about shakira, ella me desfrauda, all the great music she has done in spanish, and now she's doing this wannabe americana BS...."laundry service", she probably doesn't even know what that means.

Re: Dont cry for me SHAKIRA!!!!

be sure that she wont be with "un hijo de nadie"

Can you say "Sell out"?

Another marginally talented entertainer marketted to the Masses by that Cheap Lebonese Emilio Estefan! I hear he now has his fingers in Juan luis guerra!

Re: Dont cry for me SHAKIRA!!!!

I am glad nobody here so far likes her....I dont either...she is just another top 40 garbage. the only one who is going to miss her is the De La Rua boy when she packs her bags. People like her dont like to be with losers and the De La Ruas now are in bad shape...of course, unless he stole all the money and that is why Argentinians are sucking dry.
TW

Re: Can you say $$$$$$$$$$$$$$$ *PIC*

"Another marginally talented entertainer" worth millions of dollars, she just recently bought a multi-million dollar home in California, I think. At age thirteen she signed her first recording contract.

. . . CES