- Thread starter miguel
- Start date
Warning!!!!! Take your dollars out of the bank.
gmiller, sorry but..
As I understand it from my frequent contacts with actual Dominican middle class people and from the information on the newspaper sites and DR1, over the past half-year the current government has come to the end of its rope. They have plundered the country's treasury and beggared its people by loaning both domestically and internationally on an exobirtant scale. Meanwhile these loans have gone into either sustaining a massive patronage system or into investments of very dubious quality. Currently, the government of this beautiful island has trouble making interest payments on its foreign notes. This has led to to almost default and consequently reduced borrowing capacity because of reduced creditworthiness. All in all a very serious situation by my account.
While it may be true that a dollar run on the banks could help the collapse of this government, I'm am not convinced that this is a bad thing, both because it will further reduce the future loaning capacity of this insane government and because, as Pib said as well, you cannot fault people for trying to protect their interest.
The true status of the countries finances in my opinion are clearly marked by the way that the black-outs are becoming more and more of a problem and the governements intention of strong-arming the electricity companies into forgoing their debt, by calling in the generals.
All in all a very bad situation and if people chose to withdraw their dollars from this I for one cannot fault them.
MD
PS: Your so-called snide-remark about the age of posters here only shows your own insecurity and inability to judge the merit (without agreeing to them) of other people's arguments.
gmiller261 said:
As I understand it from my frequent contacts with actual Dominican middle class people and from the information on the newspaper sites and DR1, over the past half-year the current government has come to the end of its rope. They have plundered the country's treasury and beggared its people by loaning both domestically and internationally on an exobirtant scale. Meanwhile these loans have gone into either sustaining a massive patronage system or into investments of very dubious quality. Currently, the government of this beautiful island has trouble making interest payments on its foreign notes. This has led to to almost default and consequently reduced borrowing capacity because of reduced creditworthiness. All in all a very serious situation by my account.
While it may be true that a dollar run on the banks could help the collapse of this government, I'm am not convinced that this is a bad thing, both because it will further reduce the future loaning capacity of this insane government and because, as Pib said as well, you cannot fault people for trying to protect their interest.
The true status of the countries finances in my opinion are clearly marked by the way that the black-outs are becoming more and more of a problem and the governements intention of strong-arming the electricity companies into forgoing their debt, by calling in the generals.
All in all a very bad situation and if people chose to withdraw their dollars from this I for one cannot fault them.
MD
PS: Your so-called snide-remark about the age of posters here only shows your own insecurity and inability to judge the merit (without agreeing to them) of other people's arguments.
Formosano2000 said:
I remember the EXACT same thing happening in Mexico in the mid 80s--the Mexican Banks were paying some Sky High Interest rates-25-35% and a lot of Americans in Guadalajara (my ex wife's hometown) were heavily invested and had the financial RUG pulled out from under their feet when Mexico FROZE all Dollar accounts and changed the rules to withdrawals that would be permitted would be only in Pesos and many lost big time and looks like it very well could be deju vu in the DR soon.Can't happen? Don't tell the Americans who were in Mexico that story!
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During my studies one of my professors quoted a american director of... somthing (don't remember his name sorry for that)
"Every year my departement forcasted war. I ignored the warning year after year. And you know what; I've only been wrong twice (14-18 and 40-45)
So if you continue to forcast doom eventualy you'll get it right
Greetings
Johan
"Every year my departement forcasted war. I ignored the warning year after year. And you know what; I've only been wrong twice (14-18 and 40-45)
So if you continue to forcast doom eventualy you'll get it right
Greetings
Johan
The law of averages (ie. probability), it never fails.heldengebroed said:
The only thing is that you will be proven wrong so many times that by the time your chance comes to play, nobody will be willing to listen!
This is true with anything.
BTW, all those people flocking to Casinos to "win it big" are fools. In the long run, everybody looses money in those places.
You will have more luck by simply burning your cash!