Clintonians Join Vulture Flock Over Argentina

[COLGATE4]

156. And your point is?

Whether Brazil - or Tanzania - or Afghanistan or any other country you care to name "supports" Argentina is less than irrelevant.The essential point is very simple (and has nothing to do with whoever may be cheerleading for the Argentinians):

The sovereign nation of Argentina wanted to spend more money than they had available from normal revenue sources so they went out to the international financial community and solicited loans from the entire world by issuing bonds. Investors bought those bonds, believing that (as per the terms of the bonds) that they would be repaid when and as promised. Argentina however instead refused to pay, threatening default and trying to weasel out of the debt by offering the original bondholders pennies on the dollar. Many accepted, not our of any affection for Argentina but simply because, as the saying goes in Spanish "something is something and nothing is nothing". Other original investors however didn't sell on the cheap, choosing instead to hold onto their bonds until a later date when better offer came along. Now one of the parties who bought the bonds is demanding payment, as is his unquestioned legal right to do so, determined by a United States Federal Court The fact that the Argentine government now once again finds it inconvenient to repay the money they so eagerly borrowed (and spent) is not of interest to anybody except perhaps the Argentinians. The upshot now seems to be that Argentina, rather than owing up to its just debts this time around is prepared to once again default. That should do absolute wonders for their already shaky economy.