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InsiderOnline Blog: October 2008

What Would Perón Do?

Juan Perón would not have approved of Argentina President Cristina Kirchner’s proposal to nationalize private pension plans. Cato’s Ian Vasquez points to a 1973 speech in which

… Juan Perón emphatically condemns the nationalization of private pensions, calling it “theft” and referring to public pension systems as generally “inefficient” and “unsafe.” He describes a previous episode in Argentina when a government in need of money nationalized private pensions and depleted workers’ retirement funds, using them for other purposes. It was an “assault.”

For those who understand Spanish:

By the way, investors seem to agree that the idea is a bad one. Wall Street Journal reports:

The Argentine peso weakened to its lowest level in more than five years on Monday, slipping to 3.3 to the dollar from 3.28, despite central-bank intervention to support it. Traders estimate the central bank has spent roughly $500 million to $1 billion in interventions since Mrs. Kirchner announced the nationalization last Tuesday. The Buenos Aires stock market fell 5.7% on Monday, and bonds also fell.

Posted on 10/28/08 04:53 PM by Alex Adrianson

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