Argentina in focus: Big shots on Wall Street pessimistic about the Argentine Economy

Mercopress published a story yesterday detailing the general outlook the big investments banks, analysts hold in regard to Argentina's economy.

The consensus among Merrill Lynch, Barclay's and Credit Suisse is not pretty. All three firms are recommending their clients get rid of their assets in Argentine pesos, estimating that sooner or later the Argentina Central Bank will have to yield in the dispute over the US dollar in the local money market.

Bolsa de Comericio de Buenos Aires

According to a survey from Bloomberg, a majority of analysts believe the US dollar will be costing 3.20 Argentine pesos at the end of the year from its current 3.05. But the main fear of analysts is a continuation of the current economic policies which could lead to a crisis “comparable to that of 2001/02”, when the Argentine economy melted, unless there is a massive correction of economic indexes (such as retail inflation), elimination of subsidies (mainly energy and transport) and increase in public utilities rates, among other issues to address.

Click here to read more on this story from Mercopress