Despite all Government measures,Peso continues it's "Freefall"!!!

Criss Colon · Feb 15, 2003

(Edited from Diario Libre,Sat.,15 Feb)Despite all it's "Foolish" tricks to stabilize the peso over the last 2 weeks,it will soon be cheaper to cook using 10 peso notes as fuel,rather than "Gas"!!(Propane to a Dominican) The stupid idea proposed last weekend by President Mejia of adding a additional 10 % tarrif on imported goods(Not food,medicine or construction materials) can only make things worse!!!! Gasoline and propane went up again another 5%! (Government will subsidise the propane increase)...In a related story(Now this will really help the balance of payments and the economy!!!) "Hipolito"has just borrowed an additional 138.6 million US Dollares from a US and a Canadian bank to build an aquaduct in Barahona! Who is his "Econamic Advisor"?,my WIFE!!!!!.So my advice is to save your pesos! You can then use them to "Wipe Your Ass", when there is no toilet paper!!!! Was that a little harsh?Then you can eat them when there is no food! CRIS

andy a · Feb 15, 2003

Your post is ass backwards.

Otherwise, great post.

arturo · Feb 15, 2003

It's fantastic news to anyone with a dollar cash flow.

I am only a little sympathetic to people who bragged to me throughout the late 90's about "living off the interest from their peso CDs" whilst ignoring my warnings about risk factors.

Ken · Feb 15, 2003

arturo said:
It's fantastic news to anyone with a dollar cash flow.

I'm cashing dollars, but I don't consider what is happening to the peso "fantastic news". Prices are going up faster than the exchange rate. And life is becoming increasingly difficult for most Dominicans, approaching the impossible for many.

I'd rather have a stable economy and lower exchange rate.

Golo100 · Feb 15, 2003

Arturo

Dont celebrate or enjoy what you think is hard times for those who in the late 90s bragged about living off their peso investments. You are underestimating those investors. They are the same people who are now in possession of dollars. They are not as stupid as you wish they were.

I have lived off investments in pesos since 1993 and even if I had been stupid enough not to diversify and move with the trends, I would not have lost anything even if I had kept the pesos.

Anyone who had investments for that much time would have more than double, in some cases triple their original investment, and even if they used up the interest earned, they lived freely for all that time and still have the capital. Regardless of how bad the situation is, even someone who is stuck now with $1,000,000 or more pesos can easily go into the real estate market and grab the many bargains out there from people who simply have no cash to eat anymore. But in most cases these people have $5,000,000 or more and anyone in DR with that kind of cash, regardless of the situation is in better shape than 99% of Dominicans.

TW

Escott · Feb 15, 2003

You think that there are bargains in RE now that the Peso has crapped out?

Amber · Feb 16, 2003

Way too Many businesses have gone bankrupt here in the cibao area and there are a lot of RE bargains to be had. The question is, how long will the people take it before all H-- breaks loose in the streets? So how safe are the investments?

philly · Feb 16, 2003

Does anyone have a prevailing exchange rate and from what area of the DR?

I see on the http://www.bancentral.gov.do/tasa_cambio.html they are posting 25RD/1US for cash. Is that accurate?

Also does anyone know of solares for sale in los alomos near the new hospital in santiago?

Texas Bill · Feb 16, 2003

I have recently opened a US$ account with Banco Popular in Dajabon with the intention of having my pensions sent direct deposit. The procedure of initiating the transfers take about two months once the paperwork has been completed (DFAS, VA) and submitted.
My main question is, are my dollars safe(?), or is there a chance of losing all.
TEXAS BILL

Ken · Feb 16, 2003

Texas Bill, why not leave your money where it is for now and write personal checks to get pesos as needed? You may not get quite as much interest, but your money will be secure regardless of what happens here in the coming days.

Escott · Feb 16, 2003

What are examples of bargains in Real Estate if you don't mind posting them.

THanks,
Escott

Criss Colon · Feb 16, 2003

I'll sell you my house below market!!!

Depopsit 150,000 US in my Boston Account and it's yours,or anybody elses! It was worth 300,000 US. when the peso was at 15 to 1! We can go to Costa Rica tigether! CRIS:bandit:

judyisnice · Feb 16, 2003

I'd also like to know what good deals are at this time. Are they the one's on the websites that we can find on the net?
Thanks Judy

arturo · Feb 16, 2003

Re: Arturo

Golo,

You misquoted me and/or misunderstood what I wrote. Is it a language problem? At no time did I suggest I would either celebrate or enjoy anyone enduring hard times.

In fact, I expressed sympathy for anyone in that situation, albeit qualified sympathy. I also stated that anyone with a dollar cash flow in this market has an advantage. Do you disagree?

I sense you are trying to rationalize what I suspect may be a significant position in pesos. If that is the case, I sincerely hope it works out for you, but I would feel no envy.

golo said:
Dont celebrate or enjoy what you think is hard times for those who in the late 90s bragged about living off their peso investments. You are underestimating those investors. They are the same people who are now in possession of dollars. They are not as stupid as you wish they were.

I have lived off investments in pesos since 1993 and even if I had been stupid enough not to diversify and move with the trends, I would not have lost anything even if I had kept the pesos.

Anyone who had investments for that much time would have more than double, in some cases triple their original investment, and even if they used up the interest earned, they lived freely for all that time and still have the capital. Regardless of how bad the situation is, even someone who is stuck now with $1,000,000 or more pesos can easily go into the real estate market and grab the many bargains out there from people who simply have no cash to eat anymore. But in most cases these people have $5,000,000 or more and anyone in DR with that kind of cash, regardless of the situation is in better shape than 99% of Dominicans.

TW

Camden Tom · Feb 16, 2003

There are definately bargains to be had. You won't find them on any web site. You have to spend some time looking with local real estate people. This is the greatest buyers market I have ever seen. In a market like this there is always some sellers that MUST SELL NOW. If you have the cash on hand and can move quickly when the opportunity is there, there is money to be made. Last January I bought a very cute house for $55,000, put in about $4000 in improvements, just sold it for $88,000. Last year we also purchased a building on the beach in Cabarete. We got it for 56% of the asking price. The key is to be patient, negociate hard, and familiarize yourself with your area of interest so when opportunity knocks, you'll recognize it.

Criss Colon · Feb 16, 2003

Right On Arturo!! As a Financial Advisor,"Golo" is a "NoNo"!

Contrary to popular belief,some of us on DR1 have a mind,and even more important, in this case,a MEMORY!!! Golo has been a strong and steady supporter of the "dominican economy"(Oxymoron?) up until recently! Now he is posting his own brand of "Revisionist History"! "I can not and will not let him get away with it!!!!!! Now for the "GOOD" part.Do "Search" on Golo" go Way back to the "General Forum",jan. 18,2002,and what do we see but his post: TW 2001 and 2002 Predictions and Results."Oh Baby,this is SWEET!!!!!!! Now go to # 5,where he states in his own words,"Dominican Economy will end year in great shape aand will grow 5% in 2002.(I kinda Ffucking Doubt it!!!)...He was not done,"Even Hipolito can not stop this economy from growing",a really kinda Ffucking doubt it!!..................as I was doing the search I came upon a post in the Business Forum from 17,Jan.2002

"at the present rate the external debt to GNP ratio will "soon" put the DR in good company."La Argentina"."Convert your Dominican Pesos to US dollars while you still can.) That post was made my a "little Known" Financial Genius with a really good "Crystal ball!! CRISS COLON!!!!!!!!

stan chapman · Feb 16, 2003

Modesty

Geez Criss, you and I have much in common. Were it not for a surplus of modesty, we'd be perfect!!! I never did find out the answer to this question, perhaps you can tell me. How (where) do I exchange US travellers cheques for US dollars, in the Samama or Santiago? Is it possible? Stan.

arturo · Feb 16, 2003

It's a pity really. This sort of abuse by government officials has the potential to hurt many innocent investors. It's getting to be a public sector version of the Enron debacle.

I'm very concerned about people in the same situation as the guy who is considering drawing direct deposits from his pension into a Dominican bank. Beware - you are exposing yourself to tremendous and unnecessary risks from which America's Federal Deposit Insurance Corporation would protect your funds if you were to leave them in the U.S. Canadian and European banks are obviously more stable, in spite of what Dominican bankers may tell you. In the end, it's a decision we all have to make for ourselves - - how much risk can we tolerate.

For me, when everyone I know is hoarding dollars, I don't see the point of handing over any more than I absolutely need to at a given moment. After all, if lightening were to strike and the peso got back to sub-20 to the dollar rates again, the dollars wouldn't be worth much less in the rest of the world. I suppose it's also a question of how much time one spends in the rest of the world.

Amber · Feb 16, 2003

The best way to find RE bargains to to take a drive throught he area. YOu can't miss all the signs posted along the way! Then, don't seem too interested and offer half what they're asking. It's sad to take advantage of the plunge the economy has taken, then again, some people really need the cash. In the North-East coast, you will find plenty of nice houses and farms on sale. Most of these places are not posted in web sites so you do have to get out to find the good bargains.

tondra · Feb 16, 2003

Okay, here is a stupid question, but..........does the real estate market in the DR hold open houses? If not, how can a casual shopper view real estate other than drive-bys?

Be gentle with me.

Tondra

Despite all Government measures,Peso continues it's "Freefall"!!!

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