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fpapia

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About fpapia

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  1. Looks like I got toasted and branded as a conspiracy theorist. I’m not a trader now nor never have been. So, it is possible that I got the shorts and longs reversed. Anyway just remember that because one is not paranoid doesn’t mean that they are not out to get you.
  2. My thoughts follow a more cynical path. I agree with many of the opinions already expressed, however, I think that there is a simpler explanation. The foreign exchange market or forex market as it is often called is the market in which currencies are traded. So what happens if some of the BCCR administrative officials make an agreement with a few of the diputados? Both groups go Currency Trading. Let us assume that they set their positions five or six months ago. Some shorting the dollar and some going long on the Colon. Since currency trading is one of the world’s largest markets, consisting of almost $2.5 trillion in daily volume, their positions would not have an appreciable effect on the overall market. Once their spots were in place they begin ‘unlinking’ the USD from the Colon so that over a period of time their positions would become extremely valuable. These individuals cannot manipulate the forex; they can, however, manipulate Costa Rica’s position within the forex. The façade they use to cover their activities are the ideas expressed above.
  3. This may be a bit 'off topic' but does anyone know why the exchange rate is going up every day now? For a few years it was stable around 499/503 per dollar. As of 20 minutes ago it was 570 per dollar at BCR.
  4. David C. Murray "Fpapia, Banco Popular isn't offering 10% on dollar CDs, are they? Their high-rate CDs are all denominated in colones, right?" You are correct. I was referring to the account in colones. You are also correct about the length of time that the exchange rate has been stable; I have simply lost track. The question still is would the extra 2.75 percent, using Coopenae, be worth the 'risk' of not having state backing. It is understood that the state banks could also fail, however, if they do every one is in trouble in a big way. It is doubtful whether anyone could salvage their accounts under those circumstances. Just remember CONSEVCO, one of the largest insurance companies in the U.S., filed for chapter 7 and took billions of dollars of investor money with them when they went in.the late 90s. No one was saved. The general stock holder, the preferred stock holder, the bearers of their bonds.... everyone except the top tier of CONSECO got hammered. The overriding question is: "Will converting dollars to colones in order to get 10.0 - 12.5 percent be a financially wise decision?"
  5. David C. Murray - The only downside to converting dollars to colones is that the exchange rate may change drastically from the currently stable rate that we have seen for a bit over a year. If that were to happen one could lose much more than the interest paid. How does one avoid that type of threat? The Coopenae CD at 12.75 sounds good as it is about 2.5 percent more than a comparable CD in Banco Popular; which is currently paying at about 10 percent. The second issue that comes to mind is that the banks in CR are probably a bit more stable than Coopenae as they have the backing of the state.
  6. I have watched the exchange rate since 2000. What I have seen is that on a weekly or monthly basis the colon was losing value vis a vi the dollar. It appears that the exchange rate has stabilized and remains at about (493.5/503.75). It makes one wonder if this is a manipulation of the banking exchange rate done by the politicians. I have also heard that the central bank is buying up dollars in order to stabilize the colon. If one could be assured that the exchange rate was going to remain stable for the next two years it would be a thought to get long term (1 year) CD’s with idle money in the states. There would be a loss on the whole transaction converting dollars to colons and then at the end converting colons to dollars. The reason this looks enticing is that the interest rates on a state side savings accounts is about .0045 percent; basically a nothing. Even though one lost a certain amount due to the transfers it appears that the net would be about 8.75 percent. Looking at it another way one would be earning 20 times what is being paid in the states. So on a 200,000 dollar ‘investment’ one could earn 17,500 per year. Certainly not chump change in my opinion. The underlying hesitation is the thought that, being a manipulated currency one could lose a substantial amount if the dollar/colon exchange rate was not artificially stabilized. Meaning politician manipulation.
  7. eskasue we have some property in Desamparados and some in Canas. We pay both through the BCR. There is a page called PAGOS that you go to. Then within PAGOS you can choose to pay the realestate tax or your CCCSS monthly payments and a few other things. You have to have an account with the bank in order to do this but we find it much easier to pay electronically than to run around town for a couple of hours going to the city offices. You can set up a bank account here in CR and then do transfers from the U.S. These transfers cost about 55-75 dollars to do. Then once the money is here all you need to do is go to the computer once a month to effect the payment. Anyway that is the way we do it.
  8. Thank you 'mona' I will see what happens in Desamparados next month.
  9. Thank you both. I guess I read wrong. Regardless, thanks for the help.
  10. I read a tread about a month ago that had a link to a 'news paper' article. The article had to do with a change in the permitting system and that the process was being sped up. I went to look for it again today and can not find it. Could some one please point me in the right direction. Thanks.
  11. This is some what 'off topic' but a year or two ago there were rumblings about increasing the taxes on expensive homes. I have looked through the forum and could not find any information. Does anyone know if that increase in the tax rate for the rich has bee put in play? Thank you.
  12. Not sure if this is the appropriate forum for this question. I have heard that the Chinese are going to install a solar generating facility in the Canas area of Guanacaste. Has anyone heard of this activity? If so would you be so kind as to advise. My source is questionable, las viejas del patio.
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