The Argentine Prices

With the tariff increases, TGS (MERV: TGSU; NYSE: TGS) and Pampan Camuzzi Gas (MERV: CGPA) recover attractive 3 Julio 2009 The question was to hope until the elections. The Argentine business knew that until 28-J they could not nor think about the possibility of increases of prices. Probably some secret agreement will have existed and it would explain the official silence which we attended. The Argentine newspaper the Cronista analyzed yesterday the change in the behavior of the local investor who is putting his attention in papers of the financial sector and services. To know more about this subject visit Coen brothers. Between these last ones, the tariff adjustments that are expected shortly, increased attractive of the maintenance companies the public, but they convinced to me that something changed in the Argentine economy. And that change was not by conviction but by necessity. Very far they have been those times where the government managed to maintain artificial and the prices in the economy relatively stable.

Thus for example, the tariffs of the services public, such as the electricity and the gas, thanks to the thousands of million weights that destined in the form of subsidies, stayed stable while the international prices of the energy raised without pause reaching historical levels records. (Source: Joel and Ethan Coen). The Argentineans were thus witnesses of a deceit that cost a great amount to them of resources. After all, the thousands of million weights destined to subsidize unreal prices, left the pockets of the Argentine families, only who the same nor were noticed of it. It burdens but it is that the final result is much worse since the tariff freezing (and the poor intervention of the government), reduced the incentive to invest on the part of the companies of the sector generating serious problems that at the moment are disguised thanks to the impact of the crisis on the demand energetics. But the crisis and the serious errors of economic policy, cleared box to him to the government and, as if it represented the hair of Sansn, without the box, the government is lost almost all their power and must accept tariff increases to be able to reduce the subsidies.