Tuesday, October 28, 2008

Cristina to nationalize pension fund

Kirchner strikes again.

Argentina's leftist government pressed forward with its controversial plan to nationalize private pension funds, laying out investment guidelines for the funds it wants to seize and lobbying Congress to approve the proposal.

They need money, badly, so they're acting badly.

Taking over the $30 billion in pension fund assets will ease the cash crunch faced by President Cristina Kirchner's government, but it has jolted investor confidence and triggered a dollar outflow.

What a disaster.

In advance of what is shaping up as a heated debate over the proposal in Congress, Mrs. Kirchner once again made her case for public pensions on Monday. "The public [sector] was considered a bad word ... and the state synonymous with inefficiency," she said. "The good of the private sector and the bad in the public sector were highlighted. We have to give the public sector its due."


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