Argentine Debt Ruling Could Damage Global Economy

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well there is a lot more to

well there is a lot more to this case

- Argentinia is mostly in financial distress because of their own government's cronyism and absurd politics and a failed economic strategy (peronism)

- The whole point why an american court can decide about argentinian debt is because the argentinian government SOLD BONDS WHICH PROMISED EXACTLY THAT!

- Of course argentina could just have sold bonds in pesos, or in dollar but under its own legal system - but in that case they would have had to pay much larger interest.


So if there is anything to learn it could be
- Don't sell bonds in a foreign currency
- Don't sell bonds while submissing to an foreign legal system
- Best include a Collective Action Clause
- If the interest is getting to high, start getting your economy in order, implement some reforms and get the economy growing (ask the OECD or IWF on the details).

test more than 1 year ago

America is broken.

America is broken.

xxxx more than 2 years ago

By now most of the civilised

By now most of the civilised world has learned that the opinions of Nobel winners are rather bereft of any value or utility.

Stan more than 2 years ago

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