Stiglitz, 137 economists from 20 countries back Argentina in debt showdown

[sandensea]

4. Sure, Judi. He certainly has his work cut out for him.

Given that foreign bondholders (which are mostly hedge funds) are not on board with the proposed bond swap, Argentina's right-wing media is making a lot out of the inevitable "default."

But though certainly not good news, it's not nearly as significant as they make it out to be. Why? Because Argentina has already been frozen out of the global credit markets since Macri's debt bubble popped in early 2018.

The country, moreover, has been in undeclared default since June 2018, when Macri had to run to the IMF for a record bailout (remember that one?) just to pay interest on the debt he racked up in just two years.

Macri himself already defaulted on part of the debt in September 2019 - including peso-denominated debt (the first time Argentina ever defaulted on debt issued in its own currency).

A new "default" headline, therefore, changes almost nothing. All the more so at a time of global calamity such as this.

As Jewish people say though, this too shall pass.

Thanks as always for your time and thoughts. Have a good and restful Sunday; stay warm! (another cold front on its way).