Argentina to go into default

[Peter1469]

Argentina to go into default (again)

We shall see what happens....

(Reuters) - Argentina failed to strike a deal to avert its second default in more than 12 years after talks with holdout creditors ended without a settlement on Wednesday.


The country's economy minister, Axel Kicillof, speaking at a news conference at the Argentine consulate in New York, repeatedly referred to the holdout hedge funds as "vultures" after two days of talks failed to produce an agreement.


"Unfortunately, no agreement was reached and the Republic of Argentina will imminently be in default," Daniel Pollack, the court-appointed mediator in the case, said in a statement on Wednesday evening.

[Peter1469]

As predicted: Argentina goes into default.

Standard & Poor’s declared Argentina in default after the government missed a deadline for paying interest on $13 billion of restructured bonds.
The South American country failed to get the $539 million payment to bondholders after a U.S. judge ruled that the money couldn’t be distributed unless a group of hedge funds holding defaulted debt also got paid. Argentina, in default for the second time in 13 years, has about $200 billion in foreign-currency debt, including $30 billion of restructured bonds, according to S&P.

[Peter1469]

It is not just Argentina. 11 other nations are close to bankruptcy.

Argentina is not the only country that has struggled, or even failed, to pay its debt in recent years. It is hardly the only country with a severely impaired credit rating either. Alongside Argentina, Moody's currently lists 10 other countries with a rating of Caa1 or worse. A Caa1 rating is several notches below Ba1, which still carries substantial credit risk. Based on ratings from Moody's Investors Service, these are the 11 countries at risk of default.
The countries with the lowest credit ratings significantly differ from one another. They span the globe, ranging from Greece and Ukraine in Europe, to Pakistan in Asia, to Ecuador, Venezuela, and Belize in the Americas.

[Newpublius]

Of course, the difference this time is that Argentina the government is already locked out of international credit markets. So,we'll see if this has an impact on other aspects of the Argentine economy that still might.

"The consequences arising from the continual accumulation of public debts in other countries ought to admonish us to prevent their growth in our own." John Adams First Address to Congress

Land more pertinently--

"In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place, oblige it to control itself." James Madison, Federalist Papers

[donttread]

Yet they are still standing. After all its make believe money