Consequences (2) - The collapse of the Cuban banking.

We just all to see in the real estate crisis in the U.S. and Europe, where many saw the easy way to make money without measuring the consequences of national and global level would generate. Such behavior is the norm, then the military ... Raulistas traders, known by the corporate conglomerate GAESA, feeling with hands free, then who had managed to remove Fidel Castro from power, would not act differently.

Indeed, since Fidel Castro came months before trying hard to regain control of the entire economy in Cuba, in the midst of his crusade for economic re-centralization, limited drastically Central Bank loans to these military Raulistas dealers, allowing a maximum of $ 10,000 loans. That, and nothing is the same for monopoly and GAESA. We can see in his own words:

( "Fidel Castro, 17 Nov 2005" ... We had to argue a lot, not going to believe that the directors of our companies have a habit of discipline. And not everyone can be happy, I warn you, and I warn them, too, because this will be a tough fight. No one has protested, but there were 3 000 people operating currencies and decided the gains, the use in this or that, if I paint, if I buy a better cart and not the old cacharrito we have. Three thousand, and we realized that conditions in this country that had to be overcome. There was a meeting with the principal (initeligible) changed.

If you are in a war and have many bullets does not care if the guns shoot more or less, if you have a few bullets, that was what was happening to us always in war, we had to know every rifle bullets and up the type of bullets, though they were the same size, because some worked better, others fouled, and sometimes we had to prohibit shooting, shooting only if you come to take the trench. There is nothing more terrible than an automatic weapon firing. So we us.

The banks, we have excellent banking institutions. Resources currently allocated to all expenditure of the country, are administered by banks, delivered according to the established program, and no bank manager is going to lunch with the representative of a powerful company, and never invite him to a restaurant, or invite him to go to Europe and staying with the owner, because, after all, some of our officials were guests of millions, and buyers of millions and the art of corrupting capitalists who have more subtle than a snake and sometimes worse than mice, anesthetized as they bite and are able to snatch a piece to someone at night, thus starting the Revolution came, the numbing went. And there have been not a few, and everybody knows it, because they saw the standard of living, this changed the cart, painted it, put it, or put some bandages because it became pretty vain, twenty times have we heard by Here, There, and must be taken here or there, but that was not resolved.


Transcript from 2:20. )

Well of course, lest anyone be confused. Okay, but what happened in the handling banking, recently Fidel Castro from power?.

Raulistas were released as the straitjacket that banking firms that Fidel Castro had imposed earlier this year. They could obtain credit without limit, according to the comparison of Fidel Castro, and could use their machine guns GAESA financial. Also ousted the Fidelistas, ministers and directors of banks, the military free track Raulistas merchants, capitalists and merchants in the recent real estate bubble in the United States.

( "Havana. Reuters. 26 March 2009" Cuban President Raúl Castro, easing government controls on how companies spend their currencies at the first sign of changes in the local economy following the recent cabinet reshuffle, said Entrepreneurs and economists this week.

Cuban and foreign sources based in the island said the authorities had finished the regulation that requires the Central Bank for approval of all expenditures of state enterprises that exceed more than $ 10,000.
...
Central Bank analysts said the adoption of the resolution and completion dates to the years 2003 and 2004 when the government, then led by Fidel Castro, he instituted a rigid centralization of the economy after previously allowed greater autonomy for state enterprises in the 1990s to address the crisis left by the Soviet Union.

"This means less bureaucracy, less central control, more authority and responsibility in the hands of business managers," said Phil Peters of the Lexington Institute in Virginia, who has studied the trade issue of the Cuban state.
http://www.radiolaprimerisima.com/noticias/alba/49990 )

What has been the result?.

The freezing of all funds of foreign investors in Cuba can not derive profits, the Cuban banking is bankrupt.

(Hundreds of foreign firms in the Caribbean island without taking months to transfer balances held at the Cuban bank accounts in countries of origin. In total, the Cuban playpen could exceed $ 800 million, according to sources.
http://www.lanuevacuba.com/2009/Nov/notic-09-11-2800.htm )

Apparently the warning that Fidel Castro will make the military Raulistas traders took it seriously either, which ended removing it from power.