Market does not trust Chavez

Bloomberg News via Houston Chronicle:

Venezuela's stock index fell the most among the world's primary equity benchmarks this year over concerns that President Hugo Chavez will divert profits from investors as he seeks to redistribute wealth to the country's poor.

The Caracas Stock Exchange index fell 32 percent, the biggest decline among 78 world indexes tracked by Bloomberg. Of the index's 16 members, steel maker Siderurgica Venezolana Sivensa led losers, falling 50 percent to 41.5 bolivars. The index on Friday rose 170.41, or 0.8 percent, to 20,394.83.

"Investors are just leery about investing in the economy for the long term, given the economic policies being implemented," said Miguel Octavio, executive director of BBO Servicios in Caracas.

Chavez, who was elected in 1998 and survived a recall vote last year, says capitalism breeds poverty and class inequality.

...

The man is ignorant of economics. The communist/socialist model is the one he is trying to pick from the ash heap of history where its many failures are obvious including his buddy Castro's Cuba. The Cuban's in Florida aremore productive than the whole island of Cuba and they certainly have less poverty. The market in Mexico by contrast is up 38 percent for the year. It would appear that Vicente Fox was closer to being right about trade than Chavez.

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