Argentina's Debt And The "fondos Buitres"

[Splitty]

I think people are missing the point here.
What the bondholders should be going after is the people who sold them the bonds in the first place.
Who in their right mind would buy Argentine bonds back in 2000 when Argentina was 90 Billion in debt and were asking for another for another 10 billion??
They need to go after the investment companies that instructed the original bond holders that it was such a good idea to keep loaning Argentina money when they were already so far in debt.

 

[Davidglen77]

This all goes back to the "crybaby" attitudes that are so prevalent today. Once again, all investments carry risk, some turn out well, really well and others don't so you either lose and suck it up or you have to settle for less than you originally thought you might get. But now the thing to do is sue, because an offer of millions in payments isn't enough anymore, the world has become way too greedy for that number now they want billions and all in one lump sum, even if that means throwing the lives of 40,000,000 into a black hole.......let's continue with these attitudes and keep having to rescue all of the so called "poor countries" instead of letting them find their way, sue, embargo, make a pariah out of them, that's the way we really want the world to be, isn't it?

 

[Crema Americana]

Yes, I think most people would agree that the vultures should suck it up (it's not like they are hurting) but at the same time countries should be a lot more wary about making such deals. Vultures know exactly what they're doing and have the funds to hold out, sue, and often have ties to influence rulings. Hopefully Argentina learned her lesson and this doesn't ever happen again.

Signed.

 

[Davidglen77]

Thank you to those who have signed the petition and hopefully others will sign as well. More signatures are needed. What amazes me is how many Argentinos are in favor of the fondos buitres. Some people don't realize the disastrous consequences that this could bring to an entire country - over greed. These bonds were NOT loans. They are investment instruments that carry risk, with all investments sometimes you win and sometimes you lose. They are being offered a return on their investment in the millions but apparently only billions are sufficient. What a world we live in.

 

[mc kenna]

I think or i mean i remember,,this is nothing new in Argentina,today are the fondos buitres, yesterday was the imf it's always the same cycle
Argentina's govt blames all its finacial troubles on outsiders,which comes handy since the regular citizen does not understand the implications of the credibility of their country in the international circuit.
Meanwhile as done before, this topic has people of the same country confronting each other and fail to notice that responsible for this whole mess it's actually the gov' t of Argentina for not knowing how to negotiate or lacking the capacity to understand who they are dealing with.
It's no secret that banks are not your friend,the imf is not your friend and the world bank is not your friend,so then i still don't understand how in the name of holly jumping josiepher the gov't still deals with them
Argentina was and still is a self sustainable country and the only reason that i come up with as far as why the gov;t doesn't brake away from this cycle is because they themselves are making a ton of money
this whole confrontation between the gov't and the fondos buitres is nothing more than bs to the tenth power but in the mean time keep us busy distracting us from what really matters which is accountability for their actions and how they sold the whole country out once more
If this gov't was so transparent as they claim to be they would explain how this problem originated ,when and how and also the actions taken over the years to remedy this or trouble shoot it before got to be so bad,All they do is blame the other guy before them and outsiders ,how convenient i say!

 

[dennisr]

Really do not get it myself, Argentine debt woes: default. CFK is at the G 20 meeting and wants to raise the vulture fund issue. Looking for allies. What about the 9 billion that is owed the Paris Club and is in default. The primary creditors for the Paris Club debt is Japan, Germany and the Netherlands. They are out 9 billion. Going to stand in front of the leaders of these countries and cry foul. Wow, takes a set of brass balls in my view. Whatever.

 

[germano]

In this case, these bonds were DEFAULTED and they were purchased WAY below face value, and while there is nothing wrong with a return on your investment, to do what NML Capital, Elliot Investments and Paul Singer has done is downright tragic. They have the option of making a handsome profit on their investment.......but want a 1300% profit - sounds like greed to me.

That is exactly the point. Those vulture funds bought the bonds after the default - very cheap - at a small percentage of the original value. Those are not the investors that originally gave money to Argentina but greedy investors that do not care if people in Argentina have to suffer as a consequence of all this.

 

[dennisr]

Not a lot to do with Argentina's problems with dictators and debt: Chile's financial chicanery. Not too flattering for Sebastián Piñera and the usual suspect, USA/ banks. May interest some.

http://www.forbes.com/sites/jameshenry/2011/09/10/the-other-september-11/

 

[germano]

Really do not get it myself, Argentine debt woes: default. CFK is at the G 20 meeting and wants to raise the vulture fund issue. Looking for allies. What about the 9 billion that is owed the Paris Club and is in default. The primary creditors for the Paris Club debt is Japan, Germany and the Netherlands. They are out 9 billion. Going to stand in front of the leaders of these countries and cry foul. Wow, takes a set of brass balls in my view. Whatever.

Those three countries would be crazy if they sympathized with the vulture funds. At least in the case of Germany I know that they don't. Argentina would be less likely to ever pay its debts to them if it has to pay 100% of the value of the bonds to Singer and his friends.

 

[ARbound]

As much as it brings a smirk to my face to think about all the "trouble" Christina has to go through
by flying to Morocco and ditching Tango 01 over fears of seizure, I really hate Vulture capitalism and
hedge funds, and even though I doubt many Argies/Government will learn from this, and blame it on
"Imperialist Americans" I would rather see fat billionaires take a hit versus Argentina (again).

10 years of shit economic performance, lack of investment, and a ridiculous parallel blue economy
that is hurting other South American nations is enough punishment. In personal bankruptcy, most
people are discharged after 7 years and get a chance to start over. It's going on 15 years in a bit,
time to stop.

If you buy something sold "As-Is" or "Final Sale" you don't get to go back 10 years lated when it stops
working and ask for a full refund + interest. Like others have said, they're idiots for investing like they
did, and their shareholders should sue the bastards for basically playing chicken with their money.

It's like the episode of The Simpsons when Homer invests in all these "Pumpkin Futures" before Halloween
and doesn't sell before the 31st of October. Homer is the hedge funds managers/investors, pumpkin futures
are Argentine bonds, and Halloween is around 2003.

Stupid is as stupid does...