Lost in the Andes

ITS THE ECONOMY, STUPID.

Back on this side of the Equator, I have spent the last month trying to make sense of the real estate and financial environment here.  Finally it hit me.  It’s the economy, stupid.

This phrase was coined by the Clinton campaign to describe the short-comings of President Bush Senior in his 1992 re-election bid.  The President expected to win based on his arguable efforts in foreign policy including perhaps the removal of the Soviet Union as a threat to the US but he had ignored what turned out was very important to the voters:  the economy.  The DOW Jones index was languishing at 2800, the same as it had been 2 years earlier. Housing prices, which had been increasing for several years at a rate as high as 8%, were now decreasing at about 4%.  And US unemployment had risen from about 5% to almost 8%. 

What about today.  The DOW is exactly where it was 2 years ago.  Housing prices which had been increasing at a double digit rate have been decreasing now at an almost equal double digit rate.  And the unemployment rate is creeping up.(It was over 6% in August-up from 4.5% 2 years previous)

So what does this have to do with me in Argentina.  Housing prices and the economy have been expanding at an unsustainable rate.  Now the Global economy has begun to hit and occupancy rates are falling.  Tourism is down this year for the first time in 4 years and inflation is rearing its ugly head.  It’s the economy, stupid.

All that said we have decided to rent for the near future and see what happens.  This is not the time for a B & B as was one of our ideas.  What does this mean for my love affair with wine.  I’m still trying to figure that out.  I have talked to a couple of people about leasing space in a winery and I have also been in contact with someone who leases a vineyard.  I think now is the time for patience south of the border. 

 mailman

DOW

mountain stream