Marketplace Why is Trump throwing money at the Argentine peso?
11 snips
Oct 22, 2025 
In this discussion, Sabri Beneshore, a Marketplace reporter, sheds light on the U.S.'s $20 billion currency support for Argentina's peso, exploring its risks and implications. Economist Mariana Mazzucato critiques the Trump administration's brand of state capitalism, arguing for proactive industrial policy to enhance U.S. competitiveness. They also delve into AI's influence on stock markets, questioning if recent investments signal a bubble, and analyze the evolving landscape of sports betting regulations against federal and state laws.
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U.S. Buys Pesos To Stem Inflation
- The U.S. is buying Argentine pesos to prop the currency and curb rising inflation ahead of elections.
- Treasury swaps give Argentina dollars to stabilize the peso while the U.S. holds the depreciating pesos as repayment risk builds.
Repayment Risk From Peso Intervention
- Currency swaps carry repayment risk because Argentina has defaulted repeatedly.
- If the peso keeps falling, the U.S. could be left holding pesos worth less than it paid.
AI Fuels Concentrated Market Gains
- AI investment is driving a large share of recent market gains concentrated in a few mega-cap firms.
- That concentration makes the S&P returns hinge on a small set of companies like NVIDIA and Microsoft.
