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Demolition Derby! Venezuela Versus Argentina

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

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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Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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