Andylusion
Platinum Member
BBC News - Argentina blames US mediator for debt default
You gotta love this. Now this is important, because this is exactly what we're doing in the US. It's happening right now.
Argentina spent billions more money than it collected in taxes, for social programs, and ended up borrowing all the money to pay for those social spending. Additionally, the public riots over the social programs, but at the same time refuses to pay for those social programs.
As a result, the vast majority of the money the government collected, was from exports, which is fine... until no one buys your exports. With the economic down turn in 1998, in the Asian markets, Argentina's primary buyers suddenly dried up. With an already staggering debt to begin with, in 2001 Argentina passes a stop payment on all debt.
Fast forward to today. Argentina met with it's debt holders. Much like a citizen would call up, or be called by a debt collector, they started haggling over the pay off. Argentina offered 1/3rd of the debt pay off. Meaning for every dollar owed, they would pay 33¢.
Most of the bond holders accepted the deal, but two did not. As a result, Argentina said they would pay them ZERO.
Which is entirely their right to make that choice. It's entirely the right of the people who own the bonds, to say they don't want to accept 33¢ for the dollar. It is also entirely Argentina's right to refuse.
This of course counts as a massive default, which makes lenders not want to lend to Argentina. The whole reason Argentina was trying to settle the debt to begin with, is so they can borrow money again.
Now get this.... Argentina is claiming that the reason for this newest default... is all the US fault. The reason they had a default is because the US mediator was bad. The reason they had a default is because the bond holders are 'vultures'.
Really? Is this not socialism 101? You borrowed money. You failed to pay your debts. You met with the debt holders and refuse to reach an agreement. Now none of it is your fault, but rather the evil capitalist US, and the evil mediator, and the evil people WHO LENT YOU THE MONEY.
Socialists are all just spoiled brats. Different country, different language, same childish ideology.
Sounds all too familiar? It's not my fault I borrowed thousands on a home I couldn't afford. It's not our fault we sued, and demanded banks make bad loans.
No no, it's those evil Wall St people.... even though the biggest crashes were Freddie and Fannie which are government, but no no, it's the evil capitalist bankers on Wall Street, not government, not the home buyers. Nope. All socialists are pure and perfect.
Argentina is our future if we don't stop going down this path.
You gotta love this. Now this is important, because this is exactly what we're doing in the US. It's happening right now.
Argentina spent billions more money than it collected in taxes, for social programs, and ended up borrowing all the money to pay for those social spending. Additionally, the public riots over the social programs, but at the same time refuses to pay for those social programs.
As a result, the vast majority of the money the government collected, was from exports, which is fine... until no one buys your exports. With the economic down turn in 1998, in the Asian markets, Argentina's primary buyers suddenly dried up. With an already staggering debt to begin with, in 2001 Argentina passes a stop payment on all debt.
Fast forward to today. Argentina met with it's debt holders. Much like a citizen would call up, or be called by a debt collector, they started haggling over the pay off. Argentina offered 1/3rd of the debt pay off. Meaning for every dollar owed, they would pay 33¢.
Most of the bond holders accepted the deal, but two did not. As a result, Argentina said they would pay them ZERO.
Which is entirely their right to make that choice. It's entirely the right of the people who own the bonds, to say they don't want to accept 33¢ for the dollar. It is also entirely Argentina's right to refuse.
This of course counts as a massive default, which makes lenders not want to lend to Argentina. The whole reason Argentina was trying to settle the debt to begin with, is so they can borrow money again.
Now get this.... Argentina is claiming that the reason for this newest default... is all the US fault. The reason they had a default is because the US mediator was bad. The reason they had a default is because the bond holders are 'vultures'.
Really? Is this not socialism 101? You borrowed money. You failed to pay your debts. You met with the debt holders and refuse to reach an agreement. Now none of it is your fault, but rather the evil capitalist US, and the evil mediator, and the evil people WHO LENT YOU THE MONEY.
Socialists are all just spoiled brats. Different country, different language, same childish ideology.
Sounds all too familiar? It's not my fault I borrowed thousands on a home I couldn't afford. It's not our fault we sued, and demanded banks make bad loans.
No no, it's those evil Wall St people.... even though the biggest crashes were Freddie and Fannie which are government, but no no, it's the evil capitalist bankers on Wall Street, not government, not the home buyers. Nope. All socialists are pure and perfect.
Argentina is our future if we don't stop going down this path.
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