Venezuela expropriates (updated)

Emerging markets were severely rocked yesterday by news of Venezuelan dictator Hugo Chavez's announced expropriation of the electrical and phone companies to advance his ‘revolution.' It's part of a long string of expropriations intended to destroy the Venezuelan private sector - everything from farms to factories to apartments to nature reserves.But few investors thought it could happen so suddenly or so severely on major western-held assets, as both telephone company CANTV and the electrical company really were. Check out what CANTV's drop looked like on the charts, for one. Meanwhile, looking forward, many are wondering whether there will be any compensation at all to the targeted investors. Plenty of Wall Streeters say the time to bail out of Venezuelan holdings is right now.Around the blogosphere, there's been significant interest in how Venezuelans are taking it, and thoughtful Venezuelan bloggers, like Miguel Octavio, Gustavo Coronel and Daniel Duquenal have written their...(Read Full Post)