Harvard's Hausmann on Venezuela's Political Climate

The video discusses the ethical implications of JP Morgan's inclusion of Venezuelan bonds in its indices. It highlights the moral concerns of investing in a country facing severe economic collapse and human rights violations. The term 'hunger bonds' is used to describe the situation where investors profit from the country's hardships. The discussion also covers the ethical responsibilities of bondholders and the potential need for Venezuela to restructure its bonds to recover economically.

Why is it suggested that JP Morgan should exclude Venezuelan bonds from its indices?

• To diversify the investment portfolio

• To avoid moral concerns associated with investing in a repressive regime

• To comply with international sanctions

• To increase the yield of the indices

What is the term 'hunger bonds' referring to in the context of Venezuelan investments?

• Bonds that are difficult to trade

• Bonds associated with a regime causing human suffering

• Bonds issued by countries with food shortages

• Bonds that yield high returns

What personal experience does the speaker share to highlight the situation in Venezuela?

• He lost money investing in Venezuelan bonds

• His brother-in-law, a journalist, has been imprisoned

• He worked for a Venezuelan news agency

• He visited Venezuela during the crisis

What is the potential consequence of Venezuela making bond payments instead of using funds for imports?

• Higher bond ratings

• Continued food shortages and public suffering

• Increased economic growth

• Improved international relations

What is the anticipated outcome for bondholders if Venezuela restructures its bonds?

• They will face international sanctions

• They will gain more control over Venezuelan assets

• They will receive pennies on the dollar

• They will receive full payment