Why We Might Soon See Another Argentine Default

[Joe]

True. However, in practice, history suggests that when the ability of a government to borrow disappears, that just leaves printing--more, better, faster. Some would say that's even worse.

We see the effects of the printing in the high inflation rate. But as bad as that is, the alternative we see in Greece with a 4 year recession AND COUNTING with really no end in sight to their debt slavery at the hands of politicians and it seems far worse than what we see in Argentina today.

 

[El chabon]

Greece doesnt have the fertile Lands argentina has

 

[Rich One]

There is no such thing as a "vulture fund", this is just pure propaganda. There is a bond market, people buy and sell bonds, if people weren't able to sell their bonds they wouldnt buy them in the first place. This is an explicit part of the arrangement. If a country doesnt want to be involved with "vulture funds" then they should have written into their loan agreements that they are non transferrable.Good luck with that idea ! Or perhaps the debtors may want to compensate the original buyers of the bonds who were forced to sell at a loss ?

As for "taking food" from the mouths of poor argentina babies, where does this come from ? The government can choose how it spents its money, it can choose to pay its debts, it can choose to feed babies or it can have football para todos and subsidise state funded TV propaganda.

Third world debt is a problem (although I dont consider Argentina to be a third world country), but it is for the international community, the world bank, the IMF and the regional goverments (EU etc) to resolve these issues. It is not the role of individual creditors to resolve the economic problems of errant borrowers.

People invest in the bond market and will use the law to recover debts. People borrow money and some of them use the law to avoid paying their debts ( or ignore it completely). Thats the way of the world, it makes good theatre for us bystanders.

The yields given to investors by vulture fund like NML a subsidiary of Elliott Associates, are very attractive A political analyst on channel A24 insinuated that the action taken by the Vulture Funds was politically inspired since Romney's wife had US$·1 MM invested in the NML. Fund...!!

http://www.huffingtonpost.co.uk/nick-dearden/vulture-funds-coming-to-a_b_914691.html

 

[Joe]

This condemnation of Vultures is very bad. Vultures serve a useful purpose in nature. Because of pesticides, vulture populations are being decimated - destroying some of the traditional Indian burial traditions. CFK's continued use of the word "vulture" in derogatory terms is NOT helpful!

This traditional burial method is much better for the environment then cremation or burial, polluting the air or taking up precious real estate. CFK's disparaging use of the word "Vulture" propagates this discrimination against a great and useful bird.

The bird is ugly to some narrow-minded people. Just like some people discriminate against obese or ugly people. It is all very disgraceful to harbor such prejudices.