Not-So-Feliz Navidad

A report out of Buenos Aires says holiday sales in most stores on once-vital Florida Street are down 35 percent or more from last Christmas.

Aregentina is in the midst of a 42-month recession that has sharply deepened in the last four months. Unemployment has risen to 18 percent. But even shoppers with jobs have less liquidity to shop with. The government has limited cash withdrawals from individual bank accounts to $1000 a month, to avoid a costly run on the banks. (To deal with the slump in holiday shopping, the country's Central Bank authorized anyone whose pay is deposited directly into their bank accounts to withdraw an extra $500 for the holiday season.)

A growing number of Florida Street stores are closing, and the survivors are advertising 30 percent discounts. Nationwide, shopping center sales are down about 20 percent, though sales of cosmetics and bath products are holding up. “Argentine women will always need to look good,” said an observer.