Socialistic/communistic fun

The president of Venezuela, Hugo Chavez, is creating a “socialist” state-run Public Bond Market.
He said " “Don’t spend all your year-end bonuses, invest in the bourse, and the state will guarantee your money with good yields.” Sounds promising. He also just kicked out a bunch of people from their apartment,making them stand in the street cuz the government "needs to use their building". The people in the pictures look sooo happy too.

article:
Chavez Creates `Socialist' Bond Market in Venezuela, Promising High Yields
By Daniel Cancel and Charlie Devereux -
document.write(dateFormat(new Date(1289836040000),"mmm d, yyyy h:MM TT Z"));
Nov 15, 2010 9:47 AM CT
Tweet (10)
LinkedIn
Share
Business Exchange
Buzz up!
Digg
Print
Email
Venezuelan President Hugo Chavez said he is creating a “socialist” state-run Public Bond Market that will offer local investors high yields to stimulate saving and allow nationalized companies to seek financing.
The Public Bond Market, which will begin operations in December, will allow state-run companies to sell debt to finance operations and individuals to seek investment opportunities, Chavez said.
Chavez tightened his grip on the financial industry this year by closing more than a dozen banks and 40 brokerages that he said committed “fraud” and set artificial exchange rates. He said investors will have their investments guaranteed by the state. Caracas’s private stock exchange has seen trading plummet since 2007 after the nationalization of companies including Cemex SAB and Cia Anonima Nacional Telefonos de Venezuela, known as CANTV.
“The banking and brokerage crisis has allowed us to draft this law,” Chavez said yesterday on state television during his Alo Presidente program. “Don’t spend all your year-end bonuses, invest in the bourse, and the state will guarantee your money with good yields.”
Yields Rise
The government’s average dollar-bond yield rose 20 basis points, or 0.2 percentage point, to 13.23 percent on Nov. 12, according to JPMorgan Chase & Co. indexes.
A draft of the bill that was approved in the National Assembly said that in addition to state companies, joint ventures, community councils and private companies will be authorized to sell debt.
Chavez plans to use the new bourse as a way to finance government enterprises, said Alejandro Grisanti, Latin America analyst for Barclays Capital. The weak financial condition of many of Venezuela’s state-owned companies will give little incentive for investors to participate in the bond market, he said.
“In my opinion there is no way that a private investor will go there,” he said in a telephone interview from New York.
The Securities Regulator authorized state oil company Petroleos de Venezuela SA to sell $3 billion of bonds due in 2017. The bonds were sold Oct. 25 and will be traded in the secondary market through the Public Bond Market, according to a statement.
CANTV, the state-run telecommunications company, will be able to sell shares to local investors through the market, Chavez said.
The government has assigned a headquarters for the bourse, Chavez said, without providing the location.
“The Public Bond Market has been born as a product of the terminal crisis of Venezuelan capitalism,” he said from the Miraflores presidential palace.
To contact the reporters on this story: Daniel Cancel in Caracas at dcancel@bloomberg.net. Charlie Devereux in Caracas at cdevereux3@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net