The editors of Investor’s Business Daily turn their attention to the presidential election that served up leftist thug Ollanta Humala on Sunday in “Peru: Shooting star turns red.” It’s an editorial that has relevance to precincts beyond Peru:
The irony is that as Humala claims he’s going to make Peru like Brazil, he forgets that Peru’s economy actually has outperformed Brazil’s. His promise, which sounds so attractive, amounts to replacing Peru’s star economy with Brazil’s inferior state-directed economy.
And that’s the best-case scenario. With a long history of imitating Chavez, it could get much worse. Markets clearly know this. It’s tragic that Peruvians do not.
The editorial runs with a chart showing that Peruvian stocks plummeted yesterday by 14 percent, to a nine-month low.