Accounts Abroad

Hello FerFal,

I'm a Greek citizen and I'm fully interested about your blog. I have a question about the abroad deposits of Argentina's people during the crisis. The Argentina's governement has been able to return them back and pesified these deposits which were gone out of the country just few months before the collapse? According to your opinion, if the IMF-EU 110 bn euros plan aims a controlled sovereign Greek default, is there a risk that the governement return back the outflow deposits? Thanks a lot for your advise.

Regards,

M-

Hi M. No, they didn't bring the accounts back from abroad before freezing the accounts in Argentina when the economy collapsed. That's the idea of an off shore account. Even though nothing is perfect and even numbered Swiss accounts aren’t what they used to be in terms of privacy, its still an account outside the national financial (and legal) system so of course Argentines that had their money in other countries where safe.

I think there's little to be done about the outflow deposits, people already view the Greek economy in a certain way (unfavorable) and it takes time, not money, to regain that trust. After all, the entire idea of economy is based on trust, the belief that A is truly worth B, once you lose that idea the economy of a country goes to hell. ironic how something considered technical and mathematical is entirely founded on feelings and perceptions, but that's the way it is. Give it a couple more years until you have a better idea of where Greece is going, on the meantime I'd do my best not to have much money in their banks.

I'd also like to take this opportunity to mention that offshore accounts aren’t that hard to open, its pretty easy actually. A few minutes of googling will give you a basic idea, and a few more hours of learning and looking around, plus a few phone calls, you'll soon figure out how to open one. Swiss bank accounts are a possibility and its historically been known as a solid, neutral country.

FerFAL

Movie For Tonight: Argentina's economic Collapse "Memoirs of the Looting" (Memoria del Saqueo)

This movie illustrates many of the things that I often talk about here. I've posted links about it for sure before, but you can watch it for free here. Link
Its 60 minutes and it helps understand things better, gives a face to the topics we talk about.

FerFAL

Security business in BA‏

Hi Fernando;

Glad you had a good trip to Texas and I wish you all the best for your move here.

I had a question about the security business in BA after the collapse. I know you've blogged that there are lots of guard positions available, but I was hoping to get a sense of how the overall security industry changed and developed after 2001. For instance, did it grow quickly, slowly, or more or less in direct proportion to the amount of crime? Were businesses the first to beef up security or family neighborhoods? What if any premium were people willing to pay for security (say compared to minimum wage)? Was it mostly guards or alarms or dogs or video cameras or patrols? Does the government have a lot of regulation to start a security company (like US) or is it more casual? What is the relationship between private security and police? Who in your opinion made good money and security and what did they do right?

Sorry for all the questions, but it seems like a good business opportunity as crime isn't likely to go down anytime soon. And here in the US many police departments are starting to get their first cut backs due to budget problems that also will not go away anytime soon.

Your thoughts you on this matter would be appreciated. Peace Ferfal.

Kind Regards,
Jeff

Hi Jeff, sorry for the delay in replying.
It grew quickly after 2001 when crime increased. I'd say its been growing and evolving steadily ever since but the initial burst has a year or two later after the economy collapsed.

Neighborhoods where the ones ot invest in security first. Getting robbed in your store is one thing, getting your wife an kids in danger is another. Later stores ended up hiring guards too, but at first I'd say people mostly worried about their homes and families.

How much did people pay? Anywhere form 1% to 5% f their salary, but that varies a lot depending ont he nieghborhood you're in and the service provided. I've paid as little as 5 dollars a month after 2001 in a bad neighborhood for a single gunman that drove around, to 20 bucks a month for a cop doing extra hours after the job, and it can be 100 to 200 pesos (1 dollar 4 pesos) in some of the better places.
A gated comunity has pretty expensive security, but is usually the safest place.
Mostly, for the middle class, people jsut installed burglar bars typically, then alarms, getting a dog. Is there's a guard watching over you generally chip in since its pretty reasonable give the socieconomic level of the place.

The government has regulation about the firearms they can have, they arent very well armed but the better companies have special treatment so to speak and have better guns. The relationship is often good since private security is clearly needed and most of these companies are started by ex cops .

For the more informal ones in poor places, I suppose they do things that arent entirely legal sometimes, but the government nets doesn't reach to every corner, specially to poorer parts of town where it often doesn't care much either way.
The ones that did good money where of course the owners of these companies. Lately security has been put to test. Now its not enough to have the guy posted as a deterrant, you are actually confronted by commando tpye robberies with well armed criminals tha know what they are doing. The company that delivers and provides good security to high end clients makes the most money, but those that provide security for middle class and upper middle class do well too.

It is a good business idea and I'd do it if I had the chance and people to work with. As you say, crime will go up and people will be wanting their neighborhood to be safe for their kids to play in, feel safe as they drive back from work.

FerFAL

Block the driveway?‏

I live in a wooded rural area and have a 3/4 mile long driveway to my home that has two steep places where I could block the road (to motor vehicle traffic) easily with a heavy farm implement. One of these sites is about 1/4 mile away and out of sight and hearing from the house. The other site is about 100 yards from the house and partly visible, through the trees, from the upstairs windows.

In the event of a severe societal breakdown would it be a good idea to block the road? Certainly I want to discourage anyone from driving up to my home in that situation but at least I could then hear them coming whereas if I block the road they could still sneak up through the woods. A compromise would be to block it where it is close to the house. That way I could keep motor vehicles away but still hear them drive near, probably, and might see them. What do you think?

Hi, I’m of the idea that if you can get there with a car, so can a car full of bad guys.
How would you block the road and still manage to get in and out for when you need to do so? That can get complicated.
If you’re thinking about a certain event where a lot of displaced people may be heading your way, then yes, I suppose you could block the way and given you have enough supplies you can stay put until the threat is over. It may work then for specific episodes where you have some time in advance.
This brings to mind another common topic of discussion, which is pretending your house is abandoned. The logic behind this is that the looter/refugee/other would think the place was already looted and there’s nothing there worth the trouble.
I find this logic to be very naïve, and totally opposite to what always happens in reality. In reality an empty house is an invitation to go inside and check for anything that might have been left behind. If nothing else, the empty house alone is ideal refugee for someone that may have just lost it all.
Wouldn’t you seek refugee in some abandoned house if needed? Its also easy to understand how anyone scrounging would approach the place to see if there’s anything of value.
Besides blocking the road, while I wouldn’t put spotlights around the place to make it stick out like a sore thumb, I would make sure that there’s enough light so that anyone getting close enough would clearly see there’s occupants. A sign saying “trespassers will be shot” would be much more of a deterrent than a house that appears abandoned.
Hope that helped, good luck with your plans.

FerFAL

Home alone women

Hello again:

 It just occurred to me today that this question might apply to some of  

your readers.  My father works for a defense contractor repairing  

submarines, and makes frequent "business trips" because he has to go  

wherever the boat is.  Most years this means he's not home for a  

significant part of the year - this year we're going to see him for  

about six weeks between now and November.  The upside of this is that  

he gets paid more when he travels, but the downside is that it's just  

me and my mother in the house for weeks on end.  Any recommendations  

for extra security for two women alone?  Thought this might help some  

readers.

Katy

Hi Katy, A while back I was in my dentist’s waiting room and overheard two young women talking. They were just the two of them living together and they were talking about moving to a condo because they were afraid of living in a house just the two of them without a man in the house.

Unfortunately it’s true around here that two women alone are viewed as an easier victim, and I suppose it’s the same in most places around the world.

The only thing to do is be more cautious and plan for better safety. How far you’ll take this will depend on how bad the crime in your area is. If you suffered home invasions in your area or other episodes of violent crime, then its better to get bust soon and not fall for the “it wont happen to me” mentality. On the other hand there are small towns in America where they cant remember the last time they had a home invasion episode, let alone rape or murder. If you’re one of the lucky ones, then maybe you can afford to be more lax about security. I simply can’t relate to that much because it’s the complete opposite of my current reality, where in the suburbs of Buenos Aires you may pay dearly for a care free attitude.

So what to do:

Improve your home security: Do install an alarm if you don’t have it already. Most houses don’t and there’s really no excuse for that since today good alarm systems are cheap and have an excellent bang per buck ratio. The first home alarm system I bought, I sold the Play Station I had to buy it. I bought a good one and did the installation myself. Read the manual and did some internet search to do it properly and it worked fine. So there's really no excuse for not having an alarm. A wirelss alarm costs a bit more but is much easier to instlall if you're not very handy.

A properly set up alarm may save a family from a rapist or burglar trying to crawl its way in at night. If the stalker has been doing some scouting and he notices you deactivating an alarm as you go in, he will probably look for a less prepared victim. A good door and lock should complete the setup. Windows are very weak points in most American homes.  Other than installing burglar bars, your only other alternative is having solid shutters. At the very least, acknowledge this weakness and don’t leave opened windows unattended.

A good dog is also a great deterrent. Unless you have previous big dog experience, I’d go for a good, easy to educate breed such as the German Sheppard. The more I learn about security, the more I notice how bad guys simply dont like dogs. They are affaid of how the animal may react, even if they overpower the vicitm. You often hear criminals mention how much they worry about big dogs.

Good family awareness is probably your greatest asset: Close doors and windows, being careful not to open the door to strangers. Never go anywhere without letting the family know where you’re at, always have your cell phone with you and generally being safety conscious. Not paranoid, but do the mental exercise of noticing who’s around your home when you go in and out, notice suspicious looking people/vehicles.

As for self defense, I’d make it a priority for your mother to learn how to shoot, and you’re old enough to handle a gun as well. Guns in the hands of citizens have saved countless lives, often without firing a single shot. At the very least get basic one day training so as to handle the weapon safely, and a dedicated self defense shooting class wont hurt at all.

Let me mention something else about his: Self defense shooting classes aren’t for 7 feet tall muscle mountain Rambos. Some people have this pre conceived notion. Nothing further from the truth. Most defense shooting classes are attended by average folks, men and women from all walks of life, all sorts of shapes and ages. If you’re taking advanced tactical training then yes, you may find people that are more into all of this, and they are more physically demanding, but for the typical self defense shooting classes, know that they are precisely made for just ordinary people that like you, want to be able to defend themselves. 

You can take slef defense as far as you want, make it a lifestyle. If that's nto your' thing, at the very least be safety concious and aware of your surroundings, install an alarm and keep your cell phone hadny with 911 on your speed dial and give seriosu consideration to buying a family dog if you dont have one already and getting a firearm. Doing this wont mean any lifestyle changes, and you'll be much better prepared security wise.

Hope that helped some, take care.

FerFAL