You heard it on No Te Duermas
In the regular economics and finance column on the radio show, Darío Banga analyzed what happened with the global financial crisis.
The Financial Crisis and Market Conditions
At the beginning of the column on No Te Duermas, Darío Banga emphasized international economics: “On Monday night, it was revealed that a significant global financial crisis was coming. But very little was said about the topic, or at least not much was explained about why it all happened. Many people talked about how the focus was on Japan, but I think it’s more on the United States.”
“The week started with a drop in the Japanese stock market that dragged down all markets, especially the U.S. market, and that obviously creates a problem. If U.S. markets fall globally, you have to imagine that Argentina is like a piece of paper in the wind. That’s the level of concern,” he added.
He then pointed out that “several things happened; first, the global market takes out loans not only in dollars but also in Japanese yen,” and that “Japan decided to raise interest rates, which makes the loans that the financial market has in that currency more expensive, creating a problem for creditors.”
“But that wasn’t all. Many people gave this explanation, but several other things happened. The market had been rising for quite some time, and markets are volatile; they don’t always go up. It’s not like the official dollar that constantly increases over time and never goes down. Markets go up and down. When you have a period of rise for a certain time, it’s normal for it to fall at some point. That’s normal,” he explained.
Companies and Concerns about the United States
In the continuation of the analysis, he emphasized the role of companies: “Typically, markets buy bonds and shares in companies that could be very profitable. For example, those working with artificial intelligence, which are the ones currently being highly valued. Sometimes the market has high expectations, but then the financial statements are released. Normally, financial market agents have the financial statements before they are published because they are trying to anticipate.”
“It turns out that many financial statements from artificial intelligence companies did not look very good. For example, a company was expected to sell 50,000 cars but ended up selling only 20 or 25. This makes the markets think it wasn’t a boom and not as important as expected. It may happen that in the future it could take off, but not at this moment. So the markets were very optimistic and ended up having expectations in something that wasn’t as significant,” he stated.
Additionally, he mentioned another situation that is being speculated about: “But another thing that happened, and will be debated in this second stage, is that the U.S. economy might enter a recession. Many people say it won’t happen and that it will remain stable, but in those analyses that the U.S. economy could enter a recession, the markets anticipate it, and what happens is a crash.”
“All these events led to a stock market crash. Now it seems like they want to set the narrative that it’s not so bad and that U.S. markets won’t enter a recession, and everything seems to be reaching a point of calm and stabilization. That’s how the markets work, and that’s what happened financially on a global level,” he concluded in the first segment.
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