Posted on 02/02/2015 11:43:06 AM PST by Lorianne
At least 40 major U.S. companies have substantial exposure to Venezuela’s deepening economic crisis, and could collectively be forced to take billions of dollars of write downs, a Reuters analysis shows.
The companies, all members of the S&P 500, and including some of the biggest names in Corporate America such as autos giant General Motors (GM.N) and drug maker Merck & Co Inc (MRK.N), together carry at least $11 billion of monetary assets in the Venezuelan currency, the bolivar, on their books.
The official rate is at 6.3 bolivars to the dollar and there are two other rates in the government system – known as SICAD 1 and SICAD 2 – at about 12 and 50. The black market rate, though, was at about 190 bolivars to the dollar on Sunday, according to the website dolartoday.com.
The problem is that the dollar value of the assets as disclosed in many of the companies' accounts is based on either the rates at 6.3 or 12 and only a limited number of transactions are allowed at those rates. The assets would be worth a lot fewer dollars at the 50 rate in the government system and the dollar value would almost be wiped out at the black market rate.
(Excerpt) Read more at reuters.com ...
The fruits of communism.
A lesson for those thinking of getting wrapped up in Cuba.
I love it when Marxist idealists get burned by their own ideology.
American business who do business with Venezuela, knew who they were dealing with .No sympathy for them.
Bailout for globalist corporate fools?
These morons will run America to the ground playing markets with people’s tax money.
Opening to Cuba, Globalism, China! Whoohoo!!
I do not see the greedy freepers making comments on it when it happens there
(By the way, screw the keystone pipeline and relations with Canada,mthough,mit is too honest and not gangster enough for us in backroom deals).
I personally don’t care if these companies lose money as a result of making investments in a country that hates America. I also don’t care if their shareholders take a hit for it. Maybe that’ll encourage the shareholders not to elect socialists to their Boards of Directors.
Surprize surprize, Government Mortors is invovled!
Awwwwww! That’s too bad.
Zackly. They must’ve skipped reading the paper for the past 20 years...
Greece . . . Venezuela . . . Russia . . . Where’s the tipping point for a worldwide meltdown?
0bama got his overseas corporate tax instituted in Venezuela. Mucho gracias, senor presidente!
They get no sympathy from me. They chose to trust a communist regime.
communists want all the means of production in the hands of the state.
I sure hope none of them turn out to be “too big to fail”.
I wonder how Sean Penn’s Venzuealean investments are doing?
“Greece . . . Venezuela . . . Russia . . . Where’s the tipping point for a worldwide meltdown?”
Trillions in bailouts have only delayed the inevitable, I’m afraid.
Worldwide economic collapse worse than the Great Depression, or world-wide war. Or both...
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