Buenos Aires

[enid602]

In Argentina for a month to escape the Phoenix heat. I do this every year. While having lunch with friends, the TV shows the peso lost one third of its value in 45 minutes. People here are scared. Damned scared.

[Bernardo de La Paz]

1. Hmm, S&P 500 gapped down 0.5% in six minutes a few minutes ago. No idea why or if related. . . nt

[brooklynite]

2. The market drop is due to China tariffs...

[Bernardo de La Paz]

4. Thx. Something new about China tariffs pass over the wires just now?

Oddly, China tariffs should help Argentinian peso, since the idea is that US soy beans can be milled by excess capacity in Argentina and moved on to China, effectively avoiding the tariff.

[enid602]

3. 33%

Who knows. But a 33% (and counting) devaluation in a country that imports as much as Argentina will soon add 33% to the cost of most goods. They’re starting to talk about a crisis.