Traders Are 'Scared As Hell' Of What's Happening In Venezuela

Venezuelan investors are abandoning ship en masse after the government indicated that it would not take immediate measures to stop the country from sinking deeper into chaos. "I am scared as hell," one Latin American bond trader said. "Default [is] likely within 12 months; the oil price collapse [is] just adding to a completely dysfunctional political and financial situation." The signal to head for the exits was so subtle that you would have missed it if you were not paying close attention. This week the Venezuelan government reiterated that it would not devalue its currency, giving it more bolivars for every dollar. It does not want to do that because the country already has the highest inflation rate in the world, at 64%. More…