Judgement Left Intact: Vulture Funds

[dennisr]

I will loan you XXX amount of dollars if you agree all disputes will be adjudicated using New York STATE law, yes or no?
Two shakedown artists in the same court room looking like "the innocent flower but be the serpent under......"

 

[Gringoboy]

Hell hath no fury and all that...
I expect she'll come out with all guns blazing and whilst I don't sympathise with her personally, she will imply that this is a dangerous precedent.
What worries most people, I expect, is how this news or even a default, will impact on the lives of ordinary people, most of whom remember 2001 with fear and bitterness.

 

[PhilipDT]

I don't agree with Argentina having to pay those bonds at face value plus interest either. When people make an investment, there is always risk involved, whether it's a stock, bond, savings account, etc. If the stock goes down, the bond loses value or the savings bank closes - YOU LOSE and if you can get SOME of your original investment back, well then you are lucky. I've never heard of an investor who lost being able to go to court and somehow convince the court to pay you fulll value plus interest - and even less when you weren't even the original investor - the vulture funds are like a collection agency, bought defaulted bonds for pennies on the dollar and parlayed that into the value of the original investment plus interest? Something is very very wrong here.......

Good post. I agree with what you said about risk and I think that comparing the vulture funds to collections agents is pretty accurate.

The main point I think you're looking over is that if you had bought a corporate bond, the issuer can't just decide not to pay you because they feel like it. Well, actually, they can, but if they do, you can sue them for 100% of the payment plus interest. In order for the debtor to discharge obligations legally, they need to have to go to court and the court decides how they're going to go onward and what best protects the creditors interests.

 

[Redpossum]

The only shake down here was when Argentina decided to unilaterally restructure their debt and told everyone who didn't like it that they could go screw themselves.

Uh, no. Let's back up.

The CIA bankrolls a military coup, (just like they did all over Latin America under Operation Condor). Then manipulates the dictatorship into launching a war, which it loses, in large part because the USA is providing the UK with secret backing. In the aftermath of the war, Argentina is saddled with huge reparations. This leads to massive looting of the public treasury under the guise of "privatisation", in which US and British billionaires buy up public assets for pennies on the dollar. And when a default inevitably follows, you think Argentina is to blame?

And while we're on the subject, how many times has Uncle Sam screwed other governments and gotten away with it, because Uncle Sam makes the rules? Ask Germany what happened to their gold, that the US won't even let them look at, let alone have back.

 

[PhilipDT]

Uh, no. Let's back up.

The CIA bankrolls a military coup, (just like they did all over Latin America under Operation Condor). Then manipulates the dictatorship into launching a war, which it loses, in large part because the USA is providing the UK with secret backing. In the aftermath of the war, Argentina is saddled with huge reparations. This leads to massive looting of the public treasury under the guise of "privatisation", in which US and British billionaires buy up public assets for pennies on the dollar. And when a default inevitably follows, you think Argentina is to blame?

I've never heard that the US manipulated Argentina into invading the Falklands. Where did you get that? Also what reparations are you talking about? I also don't think that the USA provided the UK with 'secret backing' considering the said backing was the result of an act of congress.

Ask Germany what happened to their gold, that the US won't even let them look at, let alone have back.

You're referring to a rumor/conspiracy theory that is just flat out false.

 

[Joe]

 

[PhilipDT]

Uh, no. Let's back up.

The CIA bankrolls a military coup, (just like they did all over Latin America under Operation Condor). Then manipulates the dictatorship into launching a war, which it loses, in large part because the USA is providing the UK with secret backing. In the aftermath of the war, Argentina is saddled with huge reparations. This leads to massive looting of the public treasury under the guise of "privatisation", in which US and British billionaires buy up public assets for pennies on the dollar. And when a default inevitably follows, you think Argentina is to blame?

And while we're on the subject, how many times has Uncle Sam screwed other governments and gotten away with it, because Uncle Sam makes the rules? Ask Germany what happened to their gold, that the US won't even let them look at, let alone have back.

Redpossum, you have lots of interesting insights and the apparent effort you've put into integrating yourself into la vida porteña is admirable. You most certainly make a positive contribution to the community here.

However, there is something that drives me crazy about your posts. Since joining this forum, you have repeatedly made assertions which have the guise of being well reasoned and logical until one realizes that they're based wholly upon false assumptions. On top of that, in the cases where you've been called out for doing so, your response has typically been to pretend that nothing has happened.

People on this board have wildly different views on every one of the vast range of topics that get mentioned here. This plurality is part of what makes this such a great community and is one of the reason's I've stuck around here. So I'm glad that when you and others disagree with what I write in my posts, you respond with what you think. But, please, if you're going to disagree with me (or anyone else) be prepared support your hypothesis.

 

[Joe]

But, please, if you're going to disagree with me (or anyone else) be prepared support your hypothesis.

A lie told often enough becomes the truth.
-- Vladimir Ilyich Lenin

 

[Gringoboy]

The idea that Reagan encouraged Galtieri to invade the Falkands is a little hard to take in, to put it mildly.

 

[scotttswan]

The idea that Reagan encouraged Galtieri to invade the Falkands is a little hard to take in, to put it mildly.

The sort of idea that's only 1 step away from....