Socialists on the Verizon

So the price of C.A. Nac. Telefonos de Venezuela rose a bit this morning on the news that Hugo Chavez will compensate stockholders when he nationalizes the company. One has to wonder who is buying this stock on such a promise. Is he nationalizing the phone service so he may more easily spy on his enemies? Does he really think he can provide better phone service after alienating those outside Venezuela who are on the cutting edge of the technology?

Chavez is hurting all of Latin America with this. I have heard several commentators, notably among them Jim Cramer, say that any Latin American exposure is riskier now. I know I just sold stock in one company that has Latin American holdings--why risk it when there are so many other options? And so wealth flees all of Latin America, poverty deepens there and of course America is blamed. The cycle then continues, with poverty deepening other dictators are more inclined to grab their phone companies.