Nationwide Pot Banging Session Scheduled

October 24th, 2008 Posted in culture, day to day, lifestyle

Written by Jamie

I received an invitation on Facebook of a “Cazerolazo en Todo El País” this afternoon, from 7-10pm.

The government has announced plans to nationalize the pension program. This is way beyond my scope, but Bloomberg has some good articles on it. 

Needless to say, much of the country is not pleased with this decision.

So, it appears, at least through Facebook, that the cacerolazos are taking to the streets.

Stay tune for late breaking pot banging news as it becomes available.

  1. 10 Responses to “Nationwide Pot Banging Session Scheduled”

  2. By Wynona Mayer on Oct 24, 2008

    I want to bang some pots for the Argentinians. How can I join the facebook group?

  3. By changcho on Oct 24, 2008

    Mmh, careful from getting your analysis on this just from Bloomberg…

  4. By Patagonia on Oct 24, 2008

    Wynona, go to http://www.Facebook.com and join.

    Changcho,

    You are right there are lots of new sources and views out there.

    Here is an interesting report on Argentina’s economic situation, “the crisis that isn’t”

    http://www.cepr.net/index.php/publications/reports/argentina:-the-crisis-that-isn-t/

    Suerte, Jamie

  5. By changcho on Oct 24, 2008

    Jamie – right, that’s one of the reports I had in mind (I had been aware of it).

    Suerte.

  6. By bruce lakin on Oct 25, 2008

    I read the paper and the Bloomberg report. Both seemed to have authoritative proof of opposite arguments. But, I am a believer in the proverb that where’s there smoke there’s fire. When bond interest and the cost of insuring against a default rise so precipitously that’s a good indication of trouble ahead. Both of these articles agree that Argentina has been cut off from credit markets because of defaults and manipulation of inflation numbers. I guess the lender of last resort is the private pension funds of your citizens. Yeah, I’d be pretty pissed too.

  7. By Patagonia on Oct 26, 2008

    I think what has a lot of citizens concerned is the nationalizing of many things. People are starting to believe ARG is moving too far left, like Chavez old Cuba, etc.

    I think this pension vote still needs to go to congress, vamos a ver!

    Adios, Jamie

  8. By bruce lakin on Oct 27, 2008

    Here’s another view of the nationalization controversy from the Wall St. Journal.

    http://online.wsj.com/article/SB122460155879054331.html

  9. By Patagonia on Oct 27, 2008

    Thanks Bruce, great article. It appears that Argentina’s previous default it coming back to haunt them as well. Suerte, Jamie

  10. By bruce lakin on Oct 31, 2008

    Liquidity assistance was also extended by the International Monetary Fund on Wednesday. The group has a new $100 billion facility that would provide emergency, three-month loans to countries “with strong economic policies that are facing temporary liquidity problems in the global capital markets”

    But Argentina will not be able to access the program, said IMF Director Dominque Strauss-Kahn.

    Argentina pension debate continues

    Investors continue to grapple with a controversial move launched by the Argentine government to nationalize the assets of 10 privately run pension funds. The assets are estimated to be worth $26 billion. Government officials have said the move will prevent further depreciation from turmoil in the global markets, while critics have said Argentina is seeking a way to raise cash to meet debt obligations that reach up to $20 billion next year.

    U.S. District Judge Thomas Griesa on Wednesday reportedly ordered a temporary freeze on $554 million in U.S. investments held by the pension funds, granting a request by bondholders. A hearing on the matter is set for Nov. 6 in New York.

    Meanwhile, the regulator of the pension-fund system, known as AFJP, ordered $ 500 million to be repatriated from Brazil, where the bulk of Argentina’s foreign holdings have been based.

    Lawmakers are currently debating the plan introduced by President Cristina Fernandez de Kirchner. But because the pension funds are still under the supervision of a government agency, it gives the agency “some latitude in terms of the rules imposed on them to protect pensioners’ money,” ahead of Congress’ ultimate decision, said Ignacio Goni, head of Latin American research at Riedel Research Group.

    The proposal has “found a ton of resistance,” said Goni, who is based in Buenos Aires.

    Ruling party officials are reviewing various changes offered by opposition- party members, changes that “in some ways they don’t want to evaluate. They want to make this quick,” in part as mid-terms elections approach next year, said Goni.

    For the longer-term in Argentina, “the critical issue is for the government to manage to stem the flow of deposits in the system,” said Rafael de la Fuente, senior economist at BNP Paribas in New York.

  11. By Patagonia on Oct 31, 2008

    Bruce,

    Thanks for keeping up on this subject. I had a long talk with a prominent Argentine business man yesterday. He told me the pension issue isn’t that big a deal. He believes the main consequence will be the funds will not be able in the financial market.

    I also asked him if there was concern the government was moving too far left, like Venezuela. He said it has been further left in the past, and it shouldn’t be a concern as the farmer’s were able to show the government their “range”.

    Adios, Jamie

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