Default- Consequences

[prettejohn]

So the chances of Argentina defaulting again on its debt repayments are looking ever more likely.

My question is how will this affect me and my family living a happy and contented life in the BA suburbs?

Argentina is already very difficult with regard to saving and making money but what is actually going to get worse?

Any Coralito veterans out there? Is it the apocalypse or will I still be able to buy meat for the asado, go to a restaurant, watch football on the telly and take a holiday in Mar de las Pampas?

I thank you in advance for responses with wisdom.

 

[ajoknoblauch]

So the chances of Argentina defaulting again on its debt repayments are looking ever more likely.

My question is how will this affect me and my family living a happy and contented life in the BA suburbs?

Argentina is already very difficult with regard to saving and making money but what is actually going to get worse?

Any Coralito veterans out there? Is it the apocalypse or will I still be able to buy meat for the asado, go to a restaurant, watch football on the telly and take a holiday in Mar de las Pampas?

I thank you in advance for responses with wisdom.

Soccer's not a problem so long as there's Fútbol Para Todos! After all, it's the only thing that really matters.

 

[Matiasba]

the problem would be if you earn pesos, if you have dollars this situation actualy benefits you

 

[thorsten]

If Argentina defaults, its different to the last default, as its "only" of technical nature. Obviously problems like decreasing reserves/high inflation combined with a slowing economy will require counter measures (independent of the current dispute), so I'd expect another major devaluation, but not any kind of collapse.

 

[GS_Dirtboy]

Expect another devaluation no matter if there is a default or not.

 

[prettejohn]

I'm earning in pesos. Time to renegotiate a linked dollar salary methinks or one that is constantly reviewed.

 

[French jurist]

I don't think there will be a default (would be a partial one: on 11/15.000.000.000 USD) since it's not the interest of Argentina & the holdouts.
This will likely end up with a deal where the holdouts accept 300/500 millions, with part in cash paid after december 2014 + bonds.

+1 for a big devaluation (either slow or quick): the end of CFK presidency will be tricky. And the new president will need to make huge payments.

If there's a new crisis, prices of essential stuff (asado, etc.) will be protected.

 

[dennisr]

The boss in my household in Argentina maintains a one week supply of food and essentials at all times: Canned food and ....... She is a Coralito veteran.

 

[MDZ]

I always maintain a month's supply of malbec ... you never know

 

[Gringoboy]

When I meet up with my biker friends, I now take my own lunch and if that means sitting on the steps outside a restaurant eating my banana, then so be it.