Skip to comments.Jaded Argentines brace for looming debt default
Posted on 07/29/2014 6:12:54 PM PDT by Lorianne
Factory owner Norberto Garcia was poised to launch a series of new toys this year after grafting hard for the past decade to rebuild his business following Argentina's 2001-2002 economic crash and debt default.
Instead, he's hunkering down for a possible second default this Thursday, cutting investment plans and scaling back his targets.
"We had plans to launch 11 new products. Now we are going to release just three," Garcia, 70, told Reuters inside a cavernous warehouse piled high with boxes of dolls, balls and plastic rabbits. "We would rather keep the money to support the company's structure as it is."
Rather than sink 2.8 million pesos ($342,200) into expanding production lines, he plans to cap the investment at 1.8 million pesos.
Garcia's wait-and-see attitude is typical of other businesses who anticipate a slowdown in sales in a country grappling with a surging inflation rate but are convinced any economic downturn will be moderate.
While unsettling, the debt crisis today is a far cry from the turmoil of Argentina's $100 billion default in 2002, and Garcia is optimistic things will ultimately improve.
"What we lived through in 2001 was catastrophic. The anguish was terrible, we didn't know what to do," said Garcia, whose Turby Toy SA had to shut down its machines, offload most staff and sell real estate at knockdown prices to weather the storm.
(Excerpt) Read more at reuters.com ...
Invade the Falklands!
Argentina and Venezuela are thinking Zimbabwe had a good thing going
Their neighbours should also brace themselves, because Argentina gets frisky nearly every time their economy goes into the crapper.
-———”We would rather keep the money to support the company’s structure as it is.”-—
That is precisely the reason our economy is flat. Money will be banked rather than used for expansion. the plateaued economy will stay flat until Obama is gone.
This is what it looked like last time.
Argentina’s Economic Collapse Part 1 of 12
Ferfal, author of “The Modern Survival Manual”, writes about the life lessons from the 2001 Argentina collapse.
Yes, his story is compelling. Everyone should read it.
He has a great blog too.
Something the preppers here might like: http://www.axebros.com/how-to-make-a-bucket-air-conditioning-unit/
And the money kept rolling out in all directions
To the poor to the weak to the destitute of all
Now cynics claim a little of the cash has gone astray
But that’s not the point my friends
When the money keeps rolling out you don’t keep books
You can tell you’ve done well by the happy grateful looks
Accountants only slow things down, figures get in
Never been a lady loved as much as Eva Peron!