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  • July 30, 2014 at 3:43 PM #21206
    Coronita
    Participant

    Don’t cry for me Argentina…

    It won’t be easy, you’ll think it’s strange.
    When I try to explain how I feel.
    That I still need your money, after all that I’ve done….

    You won’t believe me.
    All you will see, is a country you once knew
    Although I’m knee deep in debt
    After default after default with you…

    I had to let it happen, I had not changed
    Couldn’t stay all my life down without a bailout,
    Looking out of the window, with all of my debt.

    So I chose more bonds….
    Running around, trying everything new.
    But nothing impressed me at all
    I never expected it to…..

    Don’t cry for me Argentina…
    The truth is I never would have paid you.
    All through my wild days
    My mad existence
    I never kept my promise…
    Don’t keep your distance…..

    http://finance.yahoo.com/news/live-argentina-could-minutes-away-204102833.html

    July 30, 2014 at 4:36 PM #777135
    The-Shoveler
    Participant

    Never take out debt in a currency your country does not control.
    Unless you fully plan to default in advance.

    Not saying this is what Argentina did but that would be my advice anyway.

    Most all their exports will most likely be in US dollars so My guess this will not be as bad as the hype says.

    July 30, 2014 at 4:53 PM #777136
    The-Shoveler
    Participant

    My guess if you are an Argentinian and have debt in Argentinian currency, it just got a lot easier to pay.

    I had one friend in whose parents lived in Peru,

    He described it as paying more for the spark plugs for his car than he paid for his house 10 years ago.

    July 30, 2014 at 5:26 PM #777137
    spdrun
    Participant

    Isn’t that like having a second mortgage for $15,000 on a $100,000 house at 20% interest, and telling the banksters “go ahead, foreclose, but if you do, I’ll burn down the house … or we can talk about you giving a 10% rate”?

    July 30, 2014 at 5:34 PM #777138
    The-Shoveler
    Participant

    Yea except they have to come to your country controlled by your police and army to attempt to take the house back.

    ever try to get your money back from a Nigerian prince

    July 31, 2014 at 10:54 AM #777143
    spdrun
    Participant

    Seems like a silly reason to sell off the Dow and NASDAQ (-211 and -73 respectively) since Argentina does this every decade or so.

    Also, Argentina is damned if it does, and damned if it doesn’t. Apparently, giving Singer’s merry band of hedgies more favorable terms than the other 85% of creditors will entitle the other bondholders that previously accepted a haircut to seek the same terms. Which would likely result in bankruptcy or default within a short time anyway.

    I don’t think there are any “good guys” in this insanity.

    If I took a loan from a loan-shark out of necessity and he’s now pestering me for repayment, it can be better to say “hell, NO!” and break HIS legs than have my family starve.

    July 31, 2014 at 11:05 AM #777144
    FlyerInHi
    Guest

    I don’t really understand the law wrt to that argentine bonds apparently US law applies. But Argentina is a sovereign country. How can a US court make Argentina pay?

    July 31, 2014 at 11:07 AM #777145
    spdrun
    Participant

    The bonds are either being held or guaranteed by US entities, maybe?

    July 31, 2014 at 1:09 PM #777147
    FlyerInHi
    Guest

    [quote=spdrun]The bonds are either being held or guaranteed by US entities, maybe?[/quote]

    So the guarantors have to pay up.

    I don’t get it. Those articles don’t really explain important details.

    July 31, 2014 at 2:03 PM #777148
    The-Shoveler
    Participant

    Again
    “Never take out debt in a currency your country does not control.”

    The debt was in USA dollars.

    I would add as well,

    Never take out Debt that has to be paid back in gold, or something similar (or tries to act like) gold.

    Put another way,

    Never take out debt in anything that appreciates relative to your labor or goods.

    July 31, 2014 at 2:27 PM #777150
    FlyerInHi
    Guest

    I don’t think anyone can force Argentina to pay up other than the possibility of being cut off from access to the market.

    But I’d like to understand how the judge returned the money that Argentina wanted to pay the bondholders who accepted the haircut.

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