This is CBS Eye on the World. Here's John Batchelor. I welcome Mary Anastacio Grady, the America's

columnist and editor for the Wall Street Journal editorial page, Buenos Aires. The news looks promising.

The colorful, mop-haired president, Javier Malay,

facing a midterm election which the polling and the sentiment suggested he was going to do poorly,

his small party, Libertat. However, Mary, a very good evening to you. Reversal of Fortune. The success in the midterm election for Mr. Malay has not answered all the questions, even the profound questions,

but it gave him something of a breathing space. Your most recent column observes that Mr.

Malay's biggest challenge ahead is not people,

but it's the peso.

What does that mean, Mary?

Good evening to you.

Well, good evening, John.

Yes.

First of all, let me say that Milet surprised a lot of people doing as well as he did.

But I will also add, as I noted in my column on Sunday evening before the results had come in, that the expectation that he would do reasonably well was rising, you know, from Friday, Saturday into the weekend.

So I wasn't that surprised that he managed to do better than the very grim forecast that had been earlier in the month.

But I think even optimistic people were surprised that he did as well as he did.

On the national level, his coalition, which is his own party plus another part, another large party and two

smaller parties, garnered like about 41% of the national vote. And they were the single ticket

that got the most votes. They came in first, even though they won a plurality.

So that's important.

But the bigger issue that I think now he faces is how he's going to manage the overvalued

peso.

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