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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (131379)	10/26/2001 3:51:29 PM
From: Lucretius	Read Replies (1) \| Respond to of 436258

don't cry for me argentina..... i sold my calls... f*ck these clowns... i'm now naked short... let's get it on!!!!! ^DJI ^IXIC ^SPC ^IIX ^PSE 9,582.67 1,779.81 1,108.30 131.96 636.14 +119.77 +4.34 +8.21 -0.68 +0.33 Quote Data provided by Reuters Friday October 26, 3:05 pm Eastern Time Argentina's Cavallo blasts provinces, mute on trip (UPDATE: Recasts with Cavallo news conference) By Simon Gardner BUENOS AIRES, Oct 26 (Reuters) - Economy Minister Domingo Cavallo Friday blamed Argentina's economic crisis on ``irresponsible'' provinces and said he may take them to court. ADVERTISEMENT But at the same time, he was mum about a secret visit to the United States and the markets reacted badly to his silence. In his trademark combative style, Cavallo went straight for the jugular after a row with powerful provincial governors late Thursday, saying they were to blame for Argentina's woes and that there would be no more money to bail them out. ``It was (the provinces') ... irresponsible conduct that lost Argentina its credit,'' Cavallo said, blasting the governors for refusing to work out a deal that would cut their share of tax funds. Their stubbornness effectively blocked him from unveiling any new economic measures to overcome the country's chronic economic crisis, now entering its fourth year. ``I have suggested to the president that we take (judicial) proceedings to the Supreme Court.'' But investor jitters swelled and local markets were punished after he refused to take questions at a closely watched news conference on why he visited the United States earlier this week, other than to say it was ``routine.'' His silence about the secretive visit Tuesday and Wednesday has given rise to speculation he returned empty-handed from an attempt to drum up more cash, or at least verbal support, for a multibillion dollar bond swap. ``The fact he went to the United States, more or less in secret, and that he has brought nothing concrete home, gives way to two visions,'' said Hernan Fardi, a senior analyst at financial consultancy Maxinver in Buenos Aires. ``One is that he was testing the ground and doing a bit of marketing. The other is that they closed the door, which is the most probable of the two. You can't keep going every month to knock on the (International Monetary) Fund's door and say you can't meet (agreed targets). That's hardly serious.'' TAX DEAL HOPES CLOUDED The tax sharing deal had been billed as vital to enable President Fernando de la Rua's administration -- punished in recent midterm elections for the economic slump -- to keep pledges to erase the budget deficit and meet fiscal targets. If the ``zero deficit'' plan fails, it would threaten payments from an IMF bailout program, which in turn would make it harder for Argentina to fend off a default on its $132 billion public debt. Fears of a default -- or that Argentina could end the decade-old policy of pegging its peso currency to the dollar -- have repeatedly surfaced since Cavallo was hired in March to calm such worries. Cavallo sought Friday to reassure investors the currency system was safe, saying ``nobody would modify'' it and that Argentina would continue to meet its debt obligations. But markets were depressed nonetheless. The MerVal stock index (^MERV - news), which has shed around 40 percent this year, was down around 1.8 percent in early afternoon trade, although volumes were extremely thin as many investors stayed away. Argentina's benchmark Global 2008 dollar bond , which has shed almost 30 percent of its value since it was issued in June, was down 2.3 percent. The closely watched country risk premium over U.S. treasuries the government must pay to attract investors widened to 1,820 basis points. That means Argentina is a riskier bet than fellow emerging markets Brazil, Ecuador and Russia. ``The panorama is dark (for Argentina). It is very tough,'' said analyst Rafael Ber of consultancy Argentine Research. ``But not so much for the pact with the governors ... The only thing that can right the boat is a wink from the U.S. and, if there's no wink in the next few hours, the days are numbered.'' Cavallo wants to reduce the $1.3 billion a month in tax income he sends to the provinces, in line with falling fiscal revenues. In return, he would help the cash-starved provinces to negotiate lower rates on their $10 billion bank debts. Argentina plans to swap up to $16 billion of debt, with a domestic tranche involving the provinces and banks and pension funds and an international tranche.