What is it and who are the "market" | The big ju …

Mauricio Macri called on the population to vote in October, after beating at the OSP market reaction, which collapsed on all fronts at the opening of the next day. According to the reasoning of the president, what is bad for investors would be automatically for Argentines and Argentineans. Therefore, the financial collapse should rethink the vote. But it turns out that The "market" is made up of a vast group of interest groups whose behavior responds to the search for benefits that does not necessarily have to coincide with the well-being of the Argentine people..

Neither are innocent agents watching the screens to understand the reality, but behind the investors, there are vested interests, with the most obvious case. risk rating agencies (which influence decisions) or political consultants in the recent STEP. But even if there were no vested interests and it was only people of good faith who were looking for profits the market behaves intrinsically irrationallyas evidenced by the successive global financial crises that have marked the direction of the great economic crises.

"The world", "the market" or "investors" are the categories used by the government to define supposed economic actors who examine what is happening with rationality and certainty and who make decisions from there. They have no political inclination and are not influenced by groups with political motives and their interests coincide with those of the Argentine people. Mauricio Macri knows them, that's why he interprets them: "they look at us attentively" and "they want to know if we, the Argentineans, bet on the future or if we return in the past", translates the President.

However, The idea that Macri has of the financial market and that he wants to apply to the electorate is absurd where he examines it.. Risk rating agencies are located at one of the corners of the market, companies that continue to operate in the market despite some glaring fiascos. The prestigious American economist Paul Krugman wrote in 2010 that for many it can be "comforting to claim that the financial crisis – 2008 subprime mortgages" was caused only by honest mistakes. But that did not happen like that. This was largely the result of a corrupt system. And risk rating agencies have been a big part of this corruption. "The rating agencies record Argentinian debt and, from there, have an influence on the global economic players.The activity of these companies operates in an oligopoly in the hands of Moody's, Fitch and Standard and Poor's.

Another key player in the market is the International Monetary Fundwho, as the spearhead of the Donald Trump government, has given unconditional support to Mauricio Macri. While the need to restructure payments in the coming years is inevitable for Macri and Fernández, the political inclination of the IMF and the US for Argentina to face regressive structural reforms for the population , such as pension reform and labor It suggests that a fund deal with Macri would be easier than with Fernández. In principle, this market hypothesis is only a hypothesis. And if so, the benefits of such a Macri deal with the IMF are not even clear for most Argentines and Argentineans, quite the contrary.

Similar to what happens with risk rating agencies in the global financial market, pollsters and mbad media from the local scene, guided by ideological proximity to the government or by direct commercial relations with the ruling party , have presented in recent weeks a scenario of electoral optimism. that the polls took care to destroy. This caused a fictional improvement of the titles, the fall was therefore much more abrupt. Friday before the elections, there was an increase of 10% or more in quotation marks. These games and operations are also part of the "market" that Macri leases.

Domestic and foreign banks established in the country are also important market players, with the possibility of influencing bond prices, stocks and the price in dollars. And their interests can hardly be aligned with those of workers and retirees. In fact, banks are the main beneficiaries of the sidereal interest rate system, which plunges SMEs every day and destroys jobs.

But even if the financial market was
virgin, full of small investors whose interest is perfectly aligned
with that of the country, Your behavior is not rational. Therefore, your signals
should be taken with tweezers. Post-Hynian economist Hyman Minsky wrote at the time that there is a natural movement of the financial system to badume
increasing risks, which explains the recurrence of the crises
financial and speculative bubbles.