Tag Archives | financial crisis

Buenos Aires News: Edition 5

Fires Burn Over 1,200 Acres In Argentina [LAHT]
A state of emergency has been declared in Argentina’s Tierra del Fuego province, where more than 500 hectares (1,234 acres) of forest have been scorched by several fires, forcing the evacuation of dozens of people, officials said Sunday.

Argentine automakers to sell at cost, protect jobs [Reuters]
Argentine automakers will sell basic models at cost through state-subsidized loans in a plan to protect jobs in Latin America’s third-biggest economy from the global economic slowdown. Local plants of Renault SA, General Motors, Peugeot, Ford Motor Co. and other automakers will participate in the government’s plan to protect 150,000 auto industry jobs and to keep production from falling steeply next year.  Now this is an interesting idea!

Argentine Unions Want Floor for Peso Devaluation [Bloomberg]
Argentina’s union leaders want the government to put a limit on the peso’s devaluation, claiming that a softer currency will fuel inflation and undermine workers’ buying power.

Madge blows $1 million in hotel bill [The Times of India]
Madonna reportedly shelled out a million dollars on the Four Seasons hotel in Buenos Aires after she and her crew checked out from its posh premises. The megastar blew an alleged 9,000 dollars per night to stay at the hotel’s private mansion while her 200 backing dancers, singers, make-up artists, choreographers, managers and security checked into another 110 rooms – costing at least 600 dollars each.  Now, I know where at least part of my ticket money went!

Argentina Gun Swap Wildly Successful [IPS]
As a disarmament campaign launched 17 months ago in Argentina nears its end, the government and civil society groups involved in the initiative announced that it has far exceeded even the most optimistic projections, despite the lack of publicity.  The Interior Ministry reported that the programme, in which people voluntarily swap their firearms for cash, has so far collected over 102,000 guns and 721,000 munitions, all of which were destroyed.

Why Have So Many Restaurants Closed in Buenos Aires?  (english version) [La Nacion]
An interesting read, about the closure and pending closures of almost 300 restaurants in Buenos Aires due to the economic crisis. Many of these restaurants had relied on the tourist market and thus increased prices so significantly that they lost the locals. It will be intersting to see if the new visa tax that goes into effect on January 1 will cause a further decline in tourism and what the fallout will be.


Are More New Yorkers Planning a Move to Buenos Aires Now?

With the recent turmoil in the financial markets including the collapse of Lehman Brothers and the federal bailout of AIG, will more wealthy New Yorkers look to move out of the city and head to Buenos Aires where the dollar is stronger?

While this may not happen (we certainly hope not), this week has certainly been an interesting one for the entire financial services sector and no one even thinks that it’s close to being over with.  One of the more interesting things still to be seen is how this financial crisis affects other businesses that rely on Wall Street money. This is especially relevant in NYC where the luxury industry, real estate, plastic surgeons, restaurants and nightclubs heavily rely on Wall Street’s notoriously high bonuses. The Wall Street Journal published an interesting (and amusing) article about this today – As Times Turn Tough, New York’s Wealthy Economize: Plastic Surgeons, Jewelers, Yacht Builders Brace for Leaner Times; Saying No to Caviar. You can read the full article through the preceding link (or here if they require a subscription), but here’s some of the more entertaining quotes:

…A nose job in a hospital with a private nurse in attendance had been something of a rite of passage for Joan Asher’s children. But when her fourth and last child was ready for her own rhinoplasty recently, Ms. Asher asked her to postpone it. The financial markets were simply more out of whack than her 16-year-old’s proboscis…

…Patricia G. Hambrecht, who helps private clients buy and sell high-end jewelry, this week watched a client in the financial-services industry slash his budget for his wife’s wedding anniversary present to $20,000 to $25,000 from $50,000…

…On Thursday, a New York mother of two young children asked … whether she could find a good nanny willing to work for less than the $1,200 a week sought by a candidate she had found elsewhere…

Luckily, Ms. Asher’s 16-year-old was able to get the nose job when the plastic surgeon did the procedure in his office rather than the hospital, saving them $2500. Let’s hope they don’t decide to move to Buenos Aires next to try and save some money.

UPDATE (9.21.08): The Los Angeles Times just published a similar story today – Wall Street’s Pain is Acute for New Yorkers.  And, New York Magazine has a similar article – How a Smaller Wall Street Will Affect the City.