The money rolls out
The problem with the ability to move capital easily across borders is that sometimes everyone decides to leave at the same time.
That's what has happened in Argentina following Macri's loss in an indicative vote last month. The main stock index -- the Merval -- fell almost 38% the day afterwards in what was the second-worst one day drop of any index in the past 50 years. The slide has continued.
The index has fallen another 14% today after capital controls were put in place. The cumulative drop since August 13 is now 49%. Add in the 19% drop in the peso and you get a sense of the carnage.
Today's capital controls have given the peso a 6% lift but it's a desperate move for a country that's in desperate straights.
