Giant Vampire Squid Attacks Hugo Chavez!

Chavez’s Threats May Make Economy Worse, Goldman’s Ramos Says

By Daniel Cancel

May 10 (Bloomberg) -- Venezuelan President Hugo Chavez’s threats to stem speculation will likely make the economy worse and force the country to further bolster its currency, Goldman Sachs Group Inc. economist Alberto Ramos said.

“Chavez continues to misdiagnose the problem and feels the solution is more socialism and less speculation,” Ramos said in a telephone interview from New York. “They know the market performs a useful function in the economy and may look to punish someone to set an example like we’ve seen in the past.”

Chavez, who devalued the bolivar in January and seized assets of France’s Casino Guichard-Perrachon SA for alleged price violations, threatened to expropriate businesses on May 8 for selling above regulated prices and blamed private industry for the 5.2 percent increase in consumer prices last month. Chavez also called for a “strong hand” against currency speculators that he blamed for the 25 percent drop in the bolivar this year.

The comments suggest the government may seek to implement measures including “financial repression, moral suasion over businesses” and additional expropriations, Ramos said today in a research note. The government will eventually have to either increase dollar sales to the unregulated market or sell more dollar-denominated debt order in to lift the currency, he said.

http://www.bloomberg.com/apps/news?pid=20601086&sid=a0ofeV.EbBgo

Goldman needs to mind it's own fucking business when it comes to Venezuela. Doesn't Goldman have enough problems? Maybe what GS needs is more lawsuits and investigations to teach them a lesson called, "WHO DIED AND MADE YOU GAWD?"

Goldman thinks they own Venezuela....and all the little people of the world.
That was just a shot across the bow...warning Chavez that he had better not fuck with their or their cronies interests of they will fuck him up.

They had better focus on their own problems.

At least indirectly. I'm not particularly sad that Chavez is taking pressure from a clearly connected institution. Why do you think Warren Buffett bought into Goldman? www.buffettbooks.net.