Recession feared in Argentina as cracks in economy grow

[sandensea]

4. Bloomberg now realizes that these people aren't 'pro business' - they're pro monkey business.

And only if it benefits them and their associates.

As mentioned, the $15 billion from the IMF has already been deposited (on June 22). But without currency controls of any kind, capital flight will probably devour that in two to three months.

And then what? If the IMF says no to another $15 billion, the panic may become unstoppable.

That's exactly what happened in 2001: The first $10 billion were eaten up in just a few months by capital flight (it basically paid for the dollars taken out of the country), and when the IMF said no more that November, the whole house of cards came crashing down.

It's worth adding as well that Macri and his entourage are probably using the time the IMF loan gave them for precisely that: to ferret their money out of the country before strict currency controls have to be imposed. They, and many of their backers.

History, as they say, Judi, tends to repeat itself: first as tragedy (2001), then as farce.

Thanks as always for your good thoughts. Have a great weekend!