Slate Money: Argentina Bailout, US Government Shutdown, and Jared Kushner's EA Deal

Argentina Bailout and Soybeans

• 🇦🇷 The US provided Argentina with a $20 billion bailout using the Exchange Stabilization Fund, a move described as unusual and politically motivated.
• 💡 This bailout is intended to support President Javier Milei's economic program and help him win upcoming elections.
• soybeans are a key point of contention, as Argentina's removal of export tariffs allows them to sell to China, impacting US soy farmers.
• 🇺🇸 The bailout is seen as a departure from previous, more economically driven bailouts, and is framed as supporting a "Trump-friendly" leader.

US Government Shutdown and Market Reaction

• 🏛️ The US government has officially shut down, but stock markets are soaring to new highs.
• 📉 Markets appear to favor gridlock and shutdowns, as they reduce the perceived risk of federal government interference.
• ⚠️ However, the shutdown significantly impacts federal workers, government agencies (like the BLS delaying job reports), and programs like WIC and SNAP.
• 📉 The long-term damage to civil society and the federal government's ability to attract talent is a major concern, despite short-term market optimism.

Jared Kushner and Electronic Arts Deal

• 🎮 Jared Kushner is involved in a $55 billion deal to take Electronic Arts (EA) private, with significant funding from Saudi Arabia's Public Investment Fund.
• 💰 This move is seen as a way to avoid potential blocking by the Trump administration and to allow for long-term investment away from public market pressures.
• 🏦 The deal involves significant leveraging, with Kushner borrowing a substantial portion of the acquisition cost, taking advantage of currently low corporate debt rates.
• 📈 The discussion touches on the debate around quarterly reporting and the potential benefits of private ownership for companies like EA.

Numbers of the Week

• 💍 The average cost of a wedding in the US is $33,000, with October being the most popular month.
• 📺 34% of US adults use subtitles when watching TV or movies, a trend driven by streaming and noisy environments.
• ✈️ 5.5 million international passengers passed through Port Authority airports in August, an all-time high, despite narratives of declining international tourism.