posted on Aug, 18 2010 @ 02:32 AM
(Reuters) - Venezuelan President Hugo Chavez signed a new law into effect on Tuesday that formalizes the exclusion of private brokerages from
trading the local bolivar currency or public sector dollar-denominated debt.
The new Capital Markets Bill, which had already been approved by parliament and only needed the president's signature, means private brokerages
will only be able to trade local equities and securities issued by the private sector.
"With this we are leaving behind the rot of capitalism," Chavez said in a phone call to state television. "Venezuelans can now save, but not
save in the rotten brokerages of the bourgeoisie that take the money to the United States."
Market players say the law would spell the end of private brokerages in a country where the bourse traded an average of less than $500,000 a day
last year and there is almost no investment banking or initial public offerings.
Im no expert on brokering, so I dont really have too much to say. From what I understand, the private-sector brokers will not be able to use
Venezuelan money from now on. I guess the government will now pretty much be the only broker in the country.
Venezuela seems to be taking capitalism out of the picture in their country. I dont know if the people like it, or dislike it. I know I wouldnt trust
my government with this. Maybe the Venezuelan government is doing the right thing? That is, if the people support it.
When Chavez said, "Venezuelans can now save, but not save in the rotten brokerages of the bourgeoisie that take the money to the United States.", I
dont really know how much money is sent back to the US. I wouldnt think it would be that much.