Monday, January 08, 2007

Surprise Surprise

A recent Business Week article is titled "Chavez Moves Venezuela Toward Socialism." Yup. That's about right.

It turns out the Chavez plans to nationalize electricity production. This is really discouraging news from Venezuela since it is just going to further exacerbate the condition of that nation's poor. Any foreign oil company would be very foolish to invest on dime in Venezuela as long as Chavez is at the helm, which will mean that cutting edge technology in oil production will not be available. So although it looks like some US companies are going to take a haircut on their holdings, but the ultimate looses are going to be Venezuelans who are going to be further cut off from foreign investment.

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