I am not sure that emission scared investors, if anything, had someone showed up to buy them, it would have been free money fo the government.
[0] https://www.msn.com/en-us/money/markets/el-salvadors-bitcoin...
It scared off the IMF [1]. Before that, their dollar bonds plummeted after the Bitcoin announcement [2].
[1] https://www.bloomberg.com/news/articles/2022-01-25/imf-board...
[2] https://www.bloomberg.com/news/articles/2021-11-22/bitcoin-b...
On the first session though. One of the first things the congress did was to change the Supreme Court and the Attorney General.
Did I say all that happened in just two hours, live, in a HD televised session with what I believe scripted dialogs. They even had crane cameras and rail cameras for cinematic effect.
Hard to explain. Just imagine C-SPAN turning from C-SPAN into a reality-show-contest production style. Laws (including your legal tender) being approved in 2 hours with no previous announcements. Sometimes at midnight too.
And let me get to the part when the interpretation of laws can change with a government's official tweet or tv appearance. Yes. Sometimes more than once a day. And sometimes the interpreted law being the opposite of the written law. Sometimes in a foreign language. Really. :)
Imagine living in a reality show where every major change in the plot is announced on Sunday at primetime. Except the reality show is your country. :)
Those changes started worrying bond investors. Many other things, good and bad, have happened ever since, too long to type in a comment.
In less than a year. The 2052 bonds went from an all time high to an all time low. [1]
[1] https://www.boerse-frankfurt.de/bond/usp01012cc84-el-salvado...
Would you have a link to the video by chance?
MSTR as a bitcoin proxy made sense at a time when you could not easily own bitcoins, but there are direct ways to do it now anyway (GBTC, BITO).
I am ignorant and I just don't know, but which regulation would forbid you from buying a bitcoin ETF but allow you to buy junk el salvador bonds?
I mean allowed in the sense that the investment guidelines set by the board allow it.
Source: I work at a pension fund where I think we are in precisely this situation.
El Salvador is a parlamentary Republic with independent political parties and an elected president.
[1] https://edition.cnn.com/2021/09/06/world/el-salvador-preside...
I was alluding to the time he brought the military into the legislature to force through his 'crime package.' [1]
Belorussian leader Alexander Lukashenko refers to himself as the "last dictator in Europe" and I don't think he "persecutes people like Pinochet." He was also elected.
[1] https://www.npr.org/2020/02/10/804407503/troops-occupy-el-sa...
I realize it happens outside of Central and South America, but it's suggestive that there's a specific word.
I don't think it's the price of Bitcoin so much as their going all-in on it and then seeing their gamble collapse out from under them. They've now lost money on all the "dip buys" their dictator was tweeting about - in English only - to show off to the laser-eyed.
Their issue is that they showed such poor judgement.
[edit] Further, of course, they're thumbing their nose at the IMF by refusing to roll back BTC-as-tender. No matter what you think of that demand or that policy decision, if the IMF is the only one lined up to bail you out, it's their way or the high way.
[1] https://www.boerse-frankfurt.de/bond/usp01012ca29-el-salvado...