First They Came For The Oil Companies
But now, having devoured those, (T)Hugo Chavez has an even bigger appetite. He wants the banks and the biggest steel company in Venezuela.
Chavez's threat did not seem to signal an imminent takeover but rather appeared aimed at strong-arming the businesses to contribute more to local industry as he made a wide-ranging speech promising that Venezuela was headed for a classless society. Coming alongside recent moves to nationalize telecommunications, electricity companies and the oil sector, the warning was yet another sign that Chavez is serious about deepening his socialist revolution.
"Private banks have to give priority to financing the industrial sectors of Venezuela at low cost," Chavez said. "If banks don't agree with this, it's better that they go, that they turn over the banks to me, that we nationalize them and get all the banks to work for the development of the country and not to speculate and produce huge profits."
It was unclear if Chavez was referring only to Venezuelan banks including Mercantil Servicios Financieros CA and Banco Provincial SA, or also major international banks with subsidiaries in the country, such as New York-based Citigroup Inc. and Spain's Banco Bilbao Vizcaya Argentaria SA and Banco Santander Central Hispano SA.
Chavez also warned the government could take over steel producer Sidor, which is majority controlled by Luxembourg-based Ternium SA. Ternium's U.S.-traded shares closed down nearly 3.9 percent at $26.15 (19.21 euros) Thursday on the New York Stock Exchange.
The strong arm tactics of a thuggish regime. Seriously, anyone with any brains who stays in Venezuela right now is either too broke to leave or indulging in wishful thinking. Any company that is still in there is seriously screwed. The nationalizations have just begun. (Not that they could find anyone stupid enough to buy them out right now.) It will get a lot uglier there in the near future. The people of Venezuela are about to descend into a veritable hell on earth. While (T)Hugo tells them it is a paradise, of course.
World news | Gaius Thursday, 3 May , 2007
By syn, Thursday, 3 May , 2007 @ 7:57 pm
And when the moment comes that ‘the people’ begin to realize what has overtaken them, Chavez will blame it all on that capitalistic hegemonic empire called America.
I envision The Lost City II in the works?
By feeblemind, Friday, 4 May , 2007 @ 11:12 am
One wonders how many Venezuelans will be soon be headed our way? Are we watching a replay of Zimbabwe?