Why is the Caracas stock market booming?
YOU can see from this picture that the stock market in Caracas, Venezuela, is booming. The interesting question is why of course?
The answer is here.
What’s driving the market? My guess is a combination of reports that Hugo Chavez is fighting cancer and the uniting of the opposition parties behind one candidate. The upsurge that begins in February coincides with the February primary that chose Henrique Radonski as the candidate to stand against Chavez.
And, of course, February was also when the news broke that Chavez’ cancer was not in fact entirely cured and that further treatment would be necessary.
Doubts that Chavez would make a full recovery increased when his disease recurred in February, months after announcing he was “cured.”
Of course, quite how you want to interpret this is up to you. Could be the filthy capitalists savouring the thought of being able to exploit the Venezuelan people once he’s gone via either electoral defeat or death. Or it could be the thought that the economy might finally have a chance to recover from years of idiot socialism.
Your call.
Posted: 25th, May 2012 | In: Money Comment | TrackBack | Permalink
