translated from Spanish: Chile’s popular discontent is a lesson to the world

If it can happen in Chile, it can happen anywhere. That’s what John Authers, a columnist for Bloomberg Opinion, wrote this week when demonstrations broke out across the South American nation, long considered one of Latin America’s most stable democracies. He joins the podcast “What Goes Up” to discuss the consequences for markets and societies with similar economic systems.
A proposed increase in subway prices triggered a cascade of popular anger over broader financial inequality across Chile, resulting in massive and peaceful protests, but also in cases of vandalism, riots and civilian deaths involved the police and the army.
“If you’re an investor, more and more sociological things are starting to worry you; Is civil order going to be broken in some countries? “, says Authers.” There is a sense that Chile’s carefully thought-out free market version of a welfare state that seemed to be working is not really working. And that’s very worrying for the rest of the planet, because we’ve spent a couple of generations assuming that was the way forward. ”
Authers also discusses his current views on the U.S. stock market, and how “pain trading” can be for the recovery in equities to continue despite a murky fundamental picture. Also joining the podcast is Bloomberg reporter Molly Smith, who gives her opinion on the current state of credit markets.

Original source in Spanish