Argentina downgraded to nearly junk status

[MatameBA]

You make a good point. Permit me to play semantics. In that case, those that invested the money are more greedy than ignorant and more certainly corrupt.

So should funds, investors and individuals never invest a penny in any emerging market at all?

 

[Mitch]

So should funds, investors and individuals never invest a penny in any emerging market at all?

We were not talking about emerging markets. We were talking specifically about Argentina. If we're back to Argentina; that would be entirely up to them and their bottom line. I've lived and done business here for 17 years. If they asked me for my opinion: Hell no, not one f'n centavo . And if you need reasons why I wrote that... Be careful you'll be responsible for the longest crying jag/thread in the history of all forums!

 

[Bajo_cero2]

If you have money in any retirement plan (e.g. 401k, Roth IRA, or your country's equivalent) there is a very good chance some of your money was at one point invested in Argentina. All large funds invest in a mix of assets. The majority are safe / low-risk like US treasury bills. And a minority are considered riskier, like bonds from emerging markets like Argentina.

High profit means high risk. Simple.

 

[TheDonald]

The Donald why are the people only responsible for the corruption and blatant mismanegement of the argentinian economy I believe that the politicians who make these decisions without a referendum must also accept responsibility and pay as well . I find it outrageous that these politicians just jump ship and live the high life in Europe and the people are left living like paupers in their home country .

The debt to the imf is a case in point . This money was borrowed without the peoples approval and not used correctly . I believe that most of this debt has been spent propping up the devalued peso . This goes against the imf rules but they very quiet on this issue There has been no accounting presented to the argentinian public on debt taken which is contrary to all decency .
.
These politicians will live in luxury without repercussions but the battered Argentinian populace for 10 years or more will have a very diminished standard of living . It might be legal to downgrade our debt level but imho it should be illegal to destroy all peoples hopes and cause financial terrorism on the majority of the population due to the mismanagement of their economy by inept politicians

I agree with your observation of the political system, Perry. In Argentina's case, it is a hugely difficult situation to make sense of. I argued with a few people on this forum about the bank bailouts in the US. One point that we agreed upon: it was a shame that none of the US big bank CEOs went to jail. Most of them committed acts of egregious immorality. Dick Fuld at Lehman Brothers was the worst. He should have been locked up for life.

The only observation I would make in Argentina's case is that Macri was democratically elected and he pretty much did what he said he would do. He brought in free market reforms, floated the peso, settled with the hedge funds on the defaulted debt and lowered export taxes for agriculture. To the best of my knowledge, he ran on a transparent platform and that's what a majority of Argentine's voted for. Otherwise, I share your frustration that incompetent politicians are rarely held accountable.

 

[perry]

Too many vultures are at play to destroy economies . George Soros is a case in point who was behind the collapse of the english pound 20 years ago and the Mexico Crisis of the 1990s .

Billionaire who broke the Bank of England

www.telegraph.co.uk

 

[earlyretirement]

I agree with your observation of the political system, Perry. In Argentina's case, it is a hugely difficult situation to make sense of. I argued with a few people on this forum about the bank bailouts in the US. One point that we agreed upon: it was a shame that none of the US big bank CEOs went to jail. Most of them committed acts of egregious immorality. Dick Fuld at Lehman Brothers was the worst. He should have been locked up for life.

The only observation I would make in Argentina's case is that Macri was democratically elected and he pretty much did what he said he would do. He brought in free market reforms, floated the peso, settled with the hedge funds on the defaulted debt and lowered export taxes for agriculture. To the best of my knowledge, he ran on a transparent platform and that's what a majority of Argentine's voted for. Otherwise, I share your frustration that incompetent politicians are rarely held accountable.

This is a good post and spot on target. I agree with you about the frustration that no US bank CEO's going to jail. At least Dick Fuld lost almost all of his net worth when Lehman collapsed.

I don't think most intelligent people really expected that Macri would somehow fix all of the severe and unfixable problems in Argentina. NO ONE could do that in many terms in office. Absolutely he made a lot of mistakes. But make NO mistake. Argentina was heading for severe issues no matter which President was in office. That's what I don't think many of the people complaining now don't understand. It's like these people don't really understand Argentina and all the systemic failure there. There is really no long term solution to Argentina's woes other than take advantage of the ups and downs.

 

[Don Alberto]

saying no to austerity

Greece lived through several years of austerity. Now they are able to pay a considerable part of their debt.
Doing what Argentina has done for ages, creating a huge fiscal deficit, is slow suicide.

 

[Don Alberto]

Please explain why a working class family is to blame for corrupt politicians

Well, who (the majority) voted for the corrupt politicians?

 

[earlyretirement]

Well, who (the majority) voted for the corrupt politicians?

The same people that are re-electing CFK (perhaps one of the most corrupt and politicians that has stolen the most money - by all accounts in the hundreds of millions of dollars).

This is why Argentina isn't "fixable". Everything there is broken and can't really be fixed.

 

[Bajo_cero2]

The same people that are re-electing CFK (perhaps one of the most corrupt and politicians that has stolen the most money - by all accounts in the hundreds of millions of dollars).

This is why Argentina isn't "fixable". Everything there is broken and can't really be fixed.

Interesting. I read your description and it sounds like Macri.