"Argentina offering investors the best opportunity in the past 25 years"

“Argentina offering investors the best opportunity in the past 25 years”

Sunday, April 30th 2017 - 21:55 UTC

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Argentina is offering investors the best opportunity in the past 25 years as President Mauricio Macri reforms the battered Latin American economy, according to real estate developer Eduardo Elsztain, said in an interview with Bloomberg. Read full article

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Enrique Massot
Today, investors are loving Banco Central bonds (Lebacs) that yield 24.25 per cent annual, as part of the Argentine government strategy to control inflation.
Foreign investors can come, earn those extremely high interest rates for a while, and then take their earnings elsewhere whenever they decide to do so.
This reminds some analysts of past times when financial gains were big for speculators until the party ended badly for the country and for small investors.
In light of the opportunity, not many will choose to risk making productive investments when they can make a killing without dealing with employees, customers, suppliers, government offices and banks.
Argentina has already seen the movie, and know the (not happy) end.
When enough foreign debt has been created, the IMF will step in, tell the government to issue austerity measures. Then the downhill spiral accelerates to the inevitable crisis.
And a new cycle will commence.
May 02nd, 2017 - 05:30 am - Link - Report abuse 0
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