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> And now assume that the cash in Argentina isn't coming out of mattresses but from criminal activities Nah, it's very common for people to have savings in cas
by WhyNotHugo 4y ago
> And now assume that the cash in Argentina isn't coming out of mattresses but from criminal activities
Nah, it's very common for people to have savings in cash under a mattress. We had crises before where banks essentially kept people's savings and they never saw their money again. Trust is the banking system is non-existent.
- gus_massa 4y agoI agree, just nitpicking: Usually is not the bank who keeps the money, but the government. In 2001 the "dollars in the bank" account were exchanged to a government bonds to be paid 10 or 20 years later. I don't remember the details because I had too few and I changed them immediately to pesos. (IIRC I used my pesos to buy stuff, but the transformation dollars-in-bank -> bonds -> pesos -> dollars-in-cash had a 20% or 30% hair cut.)
- noduerme 4y agoAhh. please, maybe you can help clarify my comment further down. (search "20%") In 2013-15 I never knew exactly how it worked for dollars in the bank or if it was dollars in hand... but a lot of people like government economists in Belgrano and Las Cañitas had a lot of actual $100 dollar bills... (I lived in Cañitas twice and it's a great place to live if you make USD but I was nowhere near the wealth level of people who spent all day running horses and playing Polo)
- gus_massa 4y agoI replied in https://news.ycombinator.com/item?id=34739549 https://news.ycombinator.com/item?id=34739549 Happy to add more details.