So you want to deal with fidel castro, eh?

Lots of big business deals being announced lately with this government or that government or this entity or that entity trading with fidel castro’s government. Seems there’s tons of folks that want to reap the finacial rewards of trading with the island nation.

Ive got two words for those who look to fidel with dollar sign irises:

Caveat emptor.

fidel castro owes a sum of 15.438 Billion to numerous governments stupid enough to grant him credit.That figure doesnt take into account castro’s Soviet era debt which stands at a measely 22.069 Billion.

Paxety has all the details.

fidel castro: malapaga.

5 thoughts on “So you want to deal with fidel castro, eh?”

  1. Castroite “Librinsula” mentiones me, it must be they’re nervious to know there are many people outside Cuba who care about the fate of freedom over there.

    It’s part of Librinsula’s war against Miscelaneas de Cuba:

    “A lo lejos se escuchan los chillidos atemorizados de “Estefanía, activista italiana”, que emerge de entre una nube rosada de encajes y pompones, y una araña despavorida, conciente de que si el rural sigue hablando acabará poniendo en peligro la bequita de lo de las “bibliotecas independientes”, corre a buscar refugio junto a las cucarachas misceláneas que descubrimos bajo un madero podrido, la semana anterior.”

  2. Caveat Emptor indeed:

    Because of its poor credit rating, an $11 billion hard currency debt, and the risks associated with Cuban investment, interest rates have reportedly been as high as 22%. In 2002, citing chronic delinquencies and mounting short-term debts, Moody’s lowered Cuba’s credit rating to Caa1 — “speculative grade, very poor.” Dunn and Bradstreet rate Cuba as one of the riskiest economies in the world. – US State Department Profile of Cuba

    At first glance, I wonder why anyone would even consider any kind of direct investment in Cuba. Then I remember how short-sighted and stupid people get with their investments when they’re flush with cash (this time coming off a ride on the commodities bull). I also remember taking a look at one of the Vanguard Latin America funds earlier this year when fiddling with my wife’s 401(k): a 25% return! Finally, consider the possibility that the Cuban sugar industry has bottomed out, is only some investments/capital expenditures away from being revived, and
    surely has nowhere to go but up, up, up (*wink*)! Put it all together and its a recipe for trying to hit a jackpot at the expense of losing sight of the fundamentals.

    Everyone with a financial “hot potato” in their pants wants a first crack at the next, sexy emerging market.

  3. I have something to say to all those suckers that invest in Cuba…

    (Sing to the tune of “Blowin’ in the Wind” by Peter, Paul and Mary).

    How many years must it pass, before I can see my Dollars….?

    “The answer my friend, is blowing in the wind
    The answer is blowing in the wind.”

  4. Even if the Cuban sugar industry has bottomed and just needs a little investment, as soon as it’s up and running, being productive and profitable, fidel will simply take it. Bingo, 100% loss.

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