Skip to comments.Argentina says next bond payment 'impossible', default looms
Posted on 06/19/2014 6:36:22 AM PDT by WhiskeyX
(Reuters) - Argentina threatened to default on its debt on Wednesday when the government called it "impossible" to pay bond service due on June 30, citing a U.S. court decision earlier in the day that increased pressure on the economically ailing country.
(Excerpt) Read more at reuters.com ...
Personally I blame any investor who would be STOOOOOPID enough to buy Argentine junk bonds, given their post-Peronist history.
IIRC, this certainly wouldn’t be the first time Argentina’s defaulted.
Of course Argentina should pay it debts but I don’t have much sympathy for anyone who loaned them money. Loan money to an unstable Welfare State and you should understand that there is a huge risk you won’t get repaid. That is because they are using the money for current consumption, not long term investment. At some point the Ponzi scheme collapses.
“Personally I blame any investor who would be STOOOOOPID enough to buy Argentine junk bonds, given their post-Peronist history.”
Wasn’t there a song: Don’t cry for them, Arentina? :)
When the money keeps rolling out you don’t keep books
You can tell you’ve done well by the happy grateful looks
Accountants only slow things down, figures get in the way
Well not to quibble, but America currently owes 17.5 trillion dollars.
That total is (continuously) increasing.
Neither party, is doing a single thing about that debt.
We continue to send jobs elsewhere, and to import tons of stuff from China.
Bring back American jobs.
Oh wait, they already did that!
Just as the late-1970s Argentina Military dictatorship used the Falkland Islands ownership up to the point of actually pulling the trigger of armed invasion, will the neo-Peronista Kirchner regiem use that same card? When a frustrated government has financial problems and subsequent internal dissent, history is rife with military 'adventures' to provide 'solutions!'
With a world that appears to be increasingly chaotic [Obama effect], will the Argentines, now allied with China and Iran, seek once again to take advantage of distraction and try again? When you have Russian aggression against eastern Europe, the Jihadi Offensives in the Middle East, China asserting hegomony over the South China Seas, how would the world regard an "Anti-Colonialist" recapture of 'stolen' territory? Be certain that these issues are being weighed seriously in Buenos Aires (and probably London!)
There is no accident that a large banner with the above slogan was prominent at last Sunday's World Cup game between Argentina and Bosnia-Herzegovina!
But enough about the US, let's talk about Argentina...
I don’t really care about any of the parties concerned but anytime a socialist regime fails I get a warm feeling. You get what you vote for as we are finding out in this country.
Don’t worry the IMF (the Federal Reserve and the U.S. Taxpayer) will cover the losses. Its coming out of your wallet so there is not a thing to worry about.
That was my 1st scary thought. I wonder if these bonds are backed by derivatives.
How about a dozen other third-world debtor countries joining Argentina to form a debt cartel? Can we worry about THAT?
Who knows. Somehow I think US citizens are on the hook.
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