Argentina approves law for controlling prices
BUENOS AIRES, Argentina (AP) — Argentina's congress on Thursday approved a law that lets the government intervene in setting prices and profits in an attempt to tackle one of the hemisphere's worst inflation rates.
Economy Minister Axel Kicillof said the measure, approved earlier by the Senate, would defend consumers against "the innumerable abuses we suffer every day on the part of concentrated groups with monopoly power."
But local business leaders said the law is likely to aggravate shortages and inflation by discouraging people from selling price-controlled goods or making investments.
The law gives the state power to set maximum and minimum prices as well as control profit margins. Companies that set prices considered "artificial or unjustified" can be fined. However, the government bowed to earlier complaints by exempting most small and medium companies.
The lawmakers also created a government agency to monitor prices and a legal system to resolve consumer complaints.
Pro-government congresswoman Diana Conti said the laws give the government "instruments to defend users and consumers in a better way."
Conservative opposition lawmaker Pablo Tonelli argued that the government has been unable to resolve problems such as inflation and investment, "so now it is applying the only method it knows: intimidation."
Business groups said before the vote that past experience in Argentina and elsewhere shows that such laws lead to shortages of goods and services and the loss of jobs.
President Cristina Fernandez's administration has accused farm producers of holding back most of their soy harvest in hopes that a new devaluation might increase profits. The peso has been slumping against the U.S. dollar and hit its lowest level ever on the black market this week.
Confidence is dwindling in Argentina's frail economy, which is in recession as it struggles with falling foreign reserves and soaring prices. Officials acknowledge inflation of 18.2 percent through the first eight months of the year, while private analysts say it may be running at 40 percent.
Argentines are haunted by memories of the 2001 economic crisis, when banks froze deposits and the currency lost value, so people are eager to obtain and hold dollars as a safety net. But government restrictions on exchanging pesos for dollars have backfired by pushing many people to buy greenbacks on the black market, driving down the peso's value.
Fernandez slammed American Airlines on Thursday, calling it a "vulture with turbines," after the company's decided to limit the sale of tickets up to 90 days. She accused the airline of being part of a plan to destabilize the country along with U.S. creditors seeking payment of some $1.5 billion In debt.
Well it was the only news I could find, that I though might have a play on todays stock action. Then again AAl likes to drop after it's had a up day. Lol...
AAL- The Jan 2015 $32/$40/$45 bull call spread risk reversal was put on 8,000 times for a $0.26 debit. Volume was above the open interest in the Jan 2015 $32 puts. American Airlines Group remain weak despite weakness in oil & gas prices. The stock could retest the Aug 8 lows above $35, if it is unable to hold above the $37 level support level.
Always watch what option player are trading. Big boys move this stock not us peons.Lol....
Hay brain dead how's that's investment working out for you? Lol...
Dead money for the last 5 months. Anyone who has bought & held for more then 1 day has made ZERO in profits. Like I say, traders make money, investors get screwed. Lol... Hay brain dead how much did you lose this week on AAl? Lol.. Fool!
No one in there right mind wants to own this pos, except for brain dead. Come on brain dead tells us how much you loss this week on AAL? Yea baby you are quiet the trader. Lol...
I was worried about you Brain dead, heard you lost your job at Mickey D's & had to move back into your parents basement. Glad your off the street.. So moron how much have you lost so far on your imaginary trade? Lol....
Sep 18, 2014 10:54 AM
Arnoldboils are you brain dead? I posted a few days ago that I cover my short position & made a nice profit of $16,680 on my short trade. Went long 2000 shares at $36.94 sold them at $38 for a nice $2000 profit. So brain dead how much have you made in the last 10 days on this stock? Oh... More
They raise pt to $100. Then $120. Should settle around $110 by Nov, Maybe sooner. Your not shorting this under value stock are you? Lol...
Let me ask you a question you pumping fool? Are u buying at these noise bleed levels? Of course not, your looking for suckers to sell to at even a more insane price. Thanks, but no thanks, I'll short it from here back to $20 in 6 months or less.
You idiot, no one can get shares to short in Dec. What smuck!