Venezuela: The Next Cuba, Despite Protests?

The opposition protests in Venezuela on Sept. 1 and in recent days have impressed observers, and yet not much has changed politically. “We do not expect this political paralysis to continue,” says Siobhan Morden, head of Latin America fixed income strategy at Nomura Securities. “The economic crisis is the underlying driver that should ultimately force a political transition.” The opposition’s ability to bring nearly 1 million protesters to the streets Sept. 1 and organize another rally Wednesday represent an inflection point, she says. But the question is the timing of a transition, and “collateral damage” after it happens. Venezuela’s inflation has exceeded 300% this year, according to some sources. More…