Argentia close to default
http://www.theguardian.com/world/2014/jun/27/us-vulture-funds-argentina-bankruptcy
It seems the problem is with some US hedge funds.
It take it this won't affect us.
It seems the problem is with some US hedge funds.
It take it this won't affect us.
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the problem is with Argentina borrowing too much ;-)
Argentina borrowed the money
Argentina defaulted on the debt
Some people who were owed money agreed to write off two thirds of it
Other people who were owed money agreed cut their losses and sold the debt on to hedge funds instead
The hedge funds are pursuing full repayment of the money owed
Argentina only wants to repay some of the people it owes money to
Yep - definitely evil hedge funds at fault in this one
Absolutely. And not forgetting that the majority of hedge funds belong to the major insurance and pensions providers so while those with a political axe to grind criticise them and want them to go to the wall, they dont have the financial education to realise that it will be pensioners who suffer.
That's the only way to introduce money in to the economy. That or high exports. Very few countries manage high exports so borrowing it has to be. It's why America is running some $18tn debt and rising and why the world is so indebted....to banks.
Which bit of "too much" are you struggling with?
Which bit of 'all money' do you not understand?
There's been American skulduggery in South America as well, manipulation, coups and reliance on the Dollar. Or forced to use the dollar to be more accurate. There has been a rush to horde dollars because of fear of collapse, How does a country maintain it's money supply with money being taken out of the system and squirrelled away?
Argentines Are Hoarding 1 Of Every 15 Cash Dollars In The World
http://www.zerohedge.com/news/2013-05-15/argentines-are-hoarding-1-every-15-cash-dollars-world
That was from last year.
Your simplistic, and expected, comment about it being 'left wing economics' is to wilfully misrepresent the issues.
US vulture fund ruling pushes Argentina towards second bankruptcy
New York judge blocks $500m payment to creditors in ruling that favours 'predatory' hedge funds over debt restructuring plan
They'll force them in to the dollar eventually. They may be more keen now as the petro dollar is looking less certain. With China, Asia and the Middle East signing deals to trade in currencies other than the dollar, America needs all the dollar customers it can get.
The row is the latest in a long running battle between Argentina and a group of US hedge funds that bought the country's bonds after it defaulted on its debts in 2001. The hedge funds picked up the bonds at a fraction of their previous value and then demanded repayment in full.
Argentina had already brokered a deal with the majority of bondholders, who accepted losses – called a haircut – on their holdings.
Why should they be made preferential over other bond holders?
Read the full article and you will find they are not
I am currently watching DUI ( about drink drivers in Oklahoma), there are a lot in denial on that too !
Late last week, signs of a possible solution emerged when Fernández said she would attempt to resolve all of Argentina's unpaid debts in one grand bargain. She planned to ask Griesa to impose a stay on debt rulings to allow the country to make payments to creditors of restructured bonds.
Her note of conciliation helped lift prices of Argentine bonds.
However, the vulture funds were incensed and persuaded Griesa to rule that if Argentina did not give the plaintiffs all the money due, it would be refused access to the US banking system to make its other interest payments.
Not sure where denial comes in to anything.
It is a shame they didn't for the problem will not go away any time soon.
As I said read the full article and stop picking out snippets to fit your agenda
Interesting, and how long will it be before you are advocating the same tactic for a future British Government over the colossal debts run up by the Blair, Brown, Cameron Governments ?
September the 18th. But it won't be a British Government telling the Bank of England to **** off.
Of course when my grandparents were pensioners in the eighties they didn't need a private pension to survive. They just had the bog standard state pension.
One has to wonder how we have got to this state.
I see Wee Eck is raiding the Scottish State Piggy Bank so he can send leaflets to every home to remind them to vote Yes. That's hardly prudent finance, as his fellow Scot Gordon Brown use to lecture us all on - and we know how well that turned out ................
Still interesting slogan you have there ...
"Vote Yes and renege on your debts":o
Actually it is David Cameron spending English taxpayers money (nearly £1m) to send leaflets to every Scottish Home. That way he hopes he can been the subsidy from Scotland that is keeping the UK afloat.
Don't know if you looked recently but the UK isn't staying afloat, it is sinking further and further into debt, now about £1.4 trillion
That debt is immaterial as it will never be paid back. All that we can do is lower the value of it in relative terms.
Everyone knows it will never be paid back and it is impossible to force it being paid back. They just make the money they can off the interest.
Oh goody another one advocating borrowing and then reneging on the debt, no wonder the world is in a mess.