Archive for September 15th, 2002

Banana Republic Advanced Topic: Hugo Chavez strikes again, asks people to remove deposits from private banks

September 15, 2002

The Venezuelan President on Sunday said it would be “wonderful” if people took their deposits out of Venezuelan private banks and made deposits in Government banks to punish the private ones for buying  dollars, not lending money and not buying Government debt. He instructed the Minister of production and Commerce to meet with groups that proposed such a clever idea this Sunday.

How stupid can anyone be? Imagine half the people withdraw their deposits, maybe we could have a run on the banking system and have half or all the banks collapse. Nothing like promoting half-baked ideas that in the end only hurt the country. Ignorance is a terrible thing, most of all when it is used by those in power. This has to rate with about the most extreme Banana Republic thing Hugo Chavez has ever said. On top of that, state-owned banks are mostly bankrupt and mismanaged and give terrible service. Way to go Hugo!. It proves the solution is that you leave so that people stop buying dollars, start borrowing money and start buying Government bonds.