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Demolition Derby! Venezuela Versus Argentina

It is sad to watch once thriving economies commit economic suicide. Two examples are Venezuela and Argentina. But Christine Lagarde thinks the most recent $56 bn bailout of Argentina is “bearing fruit.’

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But here is the problem. At the two-year tenor, Venezuela leads in the (economic) demolition derby against Argentina with Venezuela checking in at 231% versus Argentina at “only” 42%. In terms of daily changes in yield, Argentina wins with +644 basis points, Venezuela is in 2nd place with +170 basis points and Mexico is in third place with +158 basis points.

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Venezuela and Argentina are competing on which nation has the most downward sloping yield curve.  Argentina (blue) wins, but Venezuela is a close second. Mexico (green) is also steeply downward sloping, but it is on a different axis altogether.

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This is bearing fruit?

Yup, it is a demolition derby in Latin America!

No one is talking about Argentina’s Eva and Juan Peron anymore. Probably because the USA has their own version in Hillary and Bill Clinton.

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