Currency Crises and Fast Declines

As you probably heard the Argentine peso fell 11% against the USD causing some big moves in other currency pairs and a big reaction in equity markets.

The nature of past currency crises (1994, 1997 and 1998) is that they have caused fast declines in equity prices. As we have looked at countless times since the start of this blog, the history of fast declines is that they tend to retrace reasonably quickly.

This time could of course be different but there have been currency crises in the past and the market behavior in the past has been similar. This is the type of market event where it makes sense to have a sense of history.

The picture is from the east entrance to Yellowstone National Park. I’ve seen a few park entrances here and there but none anywhere near as neat as this one.


  1. I agree on the beauty and majesty of Yellowstone – including the entrance in your pic.

    My parents first visited Yellowstone in 1931. It was their first summer of marriage. As was customary with ethnic families in Chicago, they took along a brother and sister to split the cost and share the experience. They drove on dirt roads from Chicago (nine flats) and stayed in the park for two weeks, fishing, exploring and feeding the wild animals (such as black bears) marshmallows and candy as they begged along the park roads ..have the pics for creds on this.

    They took me to Yellowstone on my first trip out of Chicago as a nine year old in 1959. I was in awe.

    I flew/drove my family to Yellowstone and other close by environs (Grand Tetons)) in the late 1980’s, where we enjoyed horseback riding, fishing, seeing the sights and geyser stumping. We celebrated our youngest son’s 12th birthday in the Yellowstone Lodge. The entire restaurant sang Happy Birthday to him. The kids still talk about that great vacation.

    Vacations, well executed, constitute many of life’s highlights.

    It also takes one’s mind off bad investment days.


  2. great story T, dirt roads all the way from Chicago? Can’t reconcile a time before freeways were built.

    It must have been something to see in 1931 (the towns along the way in that part of the country).

  3. I went to Yellowstone last January to see it in Winter. It was awesome especially with 8 feet of snow in spots.
    The park was almost empty and the roads were closed to vehicles. Only snowcats and snowmobiles were moving.
    Wish I could paste a picture here to show you.

  4. sounds awesome, the winters there are crazy (snow accumulation). Are you on twitter, tumblr or instragram? you could post it there and leave the link in the comments.


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