Chavez Just Destroyed Venezuela's Economy
See this link: http://news.yahoo.com/s/nm/20070131/ts_nm/venezuela_chavez_dc_8
Nationalizing an economy is a sure death blow. It will cause shortages, inflation and all other kinds of dislocations. Money is fleeing the country like crazy and I suspect many of its citizens will do the same, if they are able to. I also anticipate that he will, at some point, be assassinated for causing the domestic economic depression which will spark a huge rally in its stock market. It will be similar to a stock rallying when a horrible CEO steps down as investors see better times ahead.
Nationalizing an economy is a sure death blow. It will cause shortages, inflation and all other kinds of dislocations. Money is fleeing the country like crazy and I suspect many of its citizens will do the same, if they are able to. I also anticipate that he will, at some point, be assassinated for causing the domestic economic depression which will spark a huge rally in its stock market. It will be similar to a stock rallying when a horrible CEO steps down as investors see better times ahead.
posted by Never-Limp at 11:22 AM
2 Comments:
Pretty blunt prognostication about Chavez's life. Heh.
Do you anticipate that you will try to make a play at some point to possibly capture gains to be had upon his departure? Or, is this more about seeing how right or wrong your prediction without any plans on putting something at stake?
I agree that the nationalization is going to be pretty wack for his country. I remember them talking about it a few weeks ago. I guess he actually went ahead with it. What a mess.
I might try something once the economy crashes and the market is priced for despair. I enjoy buying assets at (or close to) the maximum point of uncertainty, because that's when they bottom.
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