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Argentina Bonds/Currency Tumble As Delegation Snubs Mediation

Tyler Durden's picture




 

With 2 days until the 30-day grace period for 'negotiating' the already defaulted upon bonds is over and Argentina is once again dumped from the public markets, the demands for a "continuous mediation" by Judge Griesa appears to have fallen on dear ears. Bloomberg reports that the Argentina delegation will not meet with the mediator today.. and Argentina bonds are tumbling (and CDS soaring). Markets are implying around 45-50% chance of a default being triggered, which, as Jefferies noted last week, seems low. Argentina's black-market peso (blue dollar rate) weakened to 12.75 (just shy of its weakest ever at 13.00) implying a 50% devaluation over the peso.

 

Cabinet Chief Jorge Capitanich said a delegation won’t meet with a court-appointed mediator until tomorrow even as a July 30 deadline approaches to try and stave off a default.

 

CDS have surged back to pre-mediation/grace-period levels...

 

And bond price "hope" is starting to turn to anxiety...

 

and the currency is tumbling (at 12.75 today)

 

 

Charts: Bloomberg

 

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Mon, 07/28/2014 - 09:16 | 5012231 Grande Tetons
Grande Tetons's picture

Default por favor. 

Mon, 07/28/2014 - 09:28 | 5012273 y3maxx
y3maxx's picture

BRICS vs
PRICS...
USA, UK, Israel, Ukraine, Qatar, Saudi Arabia

Mon, 07/28/2014 - 09:47 | 5012330 Publicus
Publicus's picture

Argentina should just turn to the BRICS and refuse to deal with USD.

 

The only way to win the USD game is to stop playing it! Dummy Argentina.

Mon, 07/28/2014 - 12:50 | 5013219 twh99
twh99's picture

I double dog dare them!

Mon, 07/28/2014 - 09:58 | 5012363 TalkToLind
TalkToLind's picture

PRICS is too pleasant an acronym...I'm gonna go with DICKS.

Mon, 07/28/2014 - 13:39 | 5013410 Kirk2NCC1701
Kirk2NCC1701's picture

The country that defaults first, defaults best.

All others are held back from Cliff Diving by the Global Cartel.

Mon, 07/28/2014 - 09:15 | 5012233 NoDebt
NoDebt's picture

Paging Kyle Bass.  Kyle Bass to the white courtesy phone, please.

Mon, 07/28/2014 - 09:58 | 5012358 brunoaa
brunoaa's picture

I think he has exited this position some time ago.

Still loaded with GM shares though.

Mon, 07/28/2014 - 10:25 | 5012462 BlindMonkey
BlindMonkey's picture

I didn't recall his position on GM.  Thanks for clarifying.

Mon, 07/28/2014 - 09:17 | 5012238 Max Damage
Max Damage's picture

Argentina just tell the wankers to fuck off and refuse to pay any of the debt back. Get more to follow you and fuck these money changing, war mongering pieces of filth off

Mon, 07/28/2014 - 09:22 | 5012256 negative rates
negative rates's picture

The Dr. is the boss now sonny, you can go back to sleep or day dream the time away from here on out.

Mon, 07/28/2014 - 09:38 | 5012297 Max Damage
Max Damage's picture

You buy the bonds, you know the risk. More defaults weakens the bankers method of control. US psychos at the top preparing to start another proxy war in Argentina next?

Mon, 07/28/2014 - 09:45 | 5012324 sessinpo
sessinpo's picture

Max Damage    Argentina just tell the wankers to fuck off and refuse to pay any of the debt back. Get more to follow you and fuck these money changing, war mongering pieces of filth off

----

Do you own any type of bonds?  Have you or would you ever manke a loan to someone such as your child? Then you are a money changer.

Who is really at fault here? The ones willing to loan the money or the junkies that take it? I admit, I justy loaned a small amount of money to a relative for a used car. Am I a piece of filth if he can't pay back the principle plus 2% interest? I loaned it because he is a relative and he got a lower rate and the principle was small enough for me to afford. Beggers can't be choosers. A responsible government wouldn't take on such debts. It is also government that regulates those same institutions that government borrows from (conflict of interest?) Government is the problem because government is irresponsible. They are irresponsible because they think they can always tax their way out of debt. Loans are not the problem and there will always be loans for thoe responsible to pay them back.

If you want to talk about filth in banking, it is the derivatives, the conflict of interest through lobbying (such as removing glass steagall), excess in printing by central banks which lowers a currencies value (endorsed by government), and excess in debt creation which destroys a currency (endorsed by government). Government gives the power to the banks to do such things.

Mon, 07/28/2014 - 10:39 | 5012503 Max Damage
Max Damage's picture

So the top in banking and those who own Argentina bonds are pretty much filth then? And stupid filth at that, who don't think they should ever lose out no matter what the risk is, just steal it from the workers and if the government refuses, then start a civil war and back someone who will steal it off the workers. Oh and get them in more debt during the civil war

Mon, 07/28/2014 - 11:11 | 5012632 agent default
agent default's picture

Yeah sure, when you buy blown out bonds for pennies on the dollar, knowing full well what the underlying situation is, and then turn around and demand payment in full, although you are not the one who made the original loan in the first place, you are not a money changer.  No sir, not at all.  It's just fraud and predatory behavior at its finest.

Also, charging interest to friends and family for a loan is just below slime.

 

Mon, 07/28/2014 - 23:48 | 5016142 TNTARG
TNTARG's picture

Hey, banksters run the finantial Casino, the FED, the ECB and half of the World's business to say the least, including gvts.

Mon, 07/28/2014 - 09:19 | 5012245 BandGap
BandGap's picture

Doesn't Argentina do this every 10-12 years or so anyway?

I'd have to be a farmer in Argentina, no other way to live with the currency bouncing around like Dolly Parton on a roller coaster.

Mon, 07/28/2014 - 13:34 | 5013388 Kirk2NCC1701
Kirk2NCC1701's picture

Yeah, well, back in the days of Moshe (Moses), they had a Debt Jubilee every 7 years.  Meaning:  No debt Term was longer than 7 years.

They should limit Argentina's debt Terms 10 years and be done with it.  Come to think of it, if we did the same for our debt -- including mortgages -- we would not have such overwhelming debts of perpetual financial slavery.  People would buy the house they need, not the house they want - or are programmed to want.

Mon, 07/28/2014 - 09:19 | 5012246 jmcadg
jmcadg's picture

Fuck you Singer. You greedy cunt.

Mon, 07/28/2014 - 09:43 | 5012314 LasVegasDave
LasVegasDave's picture

No, really, fuck you.

The Argies borrowed the money and promised to repay it.

This is not some liar loan handed out to some clueless "dreamer" to buy more house than he could afford.

If a govt.'s promise is worthless, it's every man for himself.

Mon, 07/28/2014 - 10:29 | 5012472 BlindMonkey
BlindMonkey's picture

Soverign debt is unsecured by nature.  All bond buyers know this and should have priced accordingly.  Caveat emptor and all of that.  

Mon, 07/28/2014 - 10:42 | 5012519 jmcadg
jmcadg's picture

Singer is gambling. This is high risk stakes. 

So you believe he should have no skin in the game?

You believe Singer should be paid regardless? And you believe what a government tells you?????? Bless.

It is every man for himself. You seem surprised!

 

Mon, 07/28/2014 - 11:05 | 5012625 astoriajoe
astoriajoe's picture

Singer bought the bonds from someone, no?

Mon, 07/28/2014 - 12:51 | 5013113 ThroxxOfVron
ThroxxOfVron's picture

"If a govt.'s promise is worthless, it's every man for himself."

 

Really, Dave?  

 

DETROIT, MICHIGAN.  

WESTFALL TOWNSHIP, PENNSYLVANIA. 

JEFFERSON COUNTY, ALABAMA.

ORANGE COUNTY, CALIFORNIA.

STOCKTON, CALIFORNIA.

SAN BERNADINO, CALIFORNIA.

CENTRAL FALLS, RHODE ISLAND.

BOISE COUNTY, IDAHO.

 

I think your on your own, Dave.  Good luck!

Mon, 07/28/2014 - 09:21 | 5012250 yogibear
yogibear's picture

The sooner that Argentina defaults and dumps it's debt the faster the recovery.

The banksters want to keep their debt going and act as a leech causing a slow death to the host while they extract their money.

Mon, 07/28/2014 - 09:51 | 5012341 sessinpo
sessinpo's picture

yogibear    The sooner that Argentina defaults and dumps it's debt the faster the recovery.

The banksters want to keep their debt going and act as a leech causing a slow death to the host while they extract their money.

---

No one is forcing the government to borrow that money. It is the government trying to keep the charade going. Government tricks its population that the economy is fine by borrowing money it can't pay back. The US is doing the same thing.

Yes, you are correct the sooner Argentina defaults the better. But it is the government at fault, not banksters.

Mon, 07/28/2014 - 10:14 | 5012411 jmcadg
jmcadg's picture

Leave it out. Are you inferring Singer (and Elliot) are sweetness and light? I agree Argentina should not have taken the loan, they like all nations should live within their means. If that means cuts then so be it. But this shit show is not just profligate nations.

These hedge funds are like PayDay lenders to the sheeple. They prey on the vulnerable and then use 'the boys' to recoup their money (plus interest) - I don't know what interest rate it is here but I doubt it's 2%!

How about Greece and The Squid?  Same shit different show.

"Here Popolololopoulous, bung me millions and I'll cook your books to get you entry into the Eurozone, but but, don't worry pal no one will know, you'll be able to feed from the EU trough for years" Just keep paying me and you'll be fine.

This is symbiotic bullshit of the highest order.

Mon, 07/28/2014 - 10:46 | 5012534 bobby02
bobby02's picture

Please, sessinpo, your facts are not welcome here. You're screwing with the whole "banksters are evil" meme.

 

If you can't make an argument based on an appeal to emotion, at least have the decency to throw in a couple of really bad analogies to confuse matters. Gratuitous references to situations, entities and countries that have nothing to do with the matter at hand will be greatly appreciated.

Mon, 07/28/2014 - 11:07 | 5012629 jmcadg
jmcadg's picture

It's good to feel appreciated :)

Mon, 07/28/2014 - 13:23 | 5013342 astoriajoe
astoriajoe's picture

"Please, sessinpo, your facts are not welcome here. You're screwing with the whole "banksters are evil" meme."

The problem comes when politicians are weak and want to feed to urges of the populace, which the bankers are happy to oblige. 

the problem is exacerbated when the politicians are former bankers.

Mon, 07/28/2014 - 09:22 | 5012253 Soul Glow
Soul Glow's picture

Another day another Argentinian default.

Mon, 07/28/2014 - 09:23 | 5012255 Kreditanstalt
Kreditanstalt's picture

THIS is a free market in action: truth, honesty and risk...and less extend-and-pretend.

Let's see more of this!

Mon, 07/28/2014 - 09:24 | 5012260 ozzzo
ozzzo's picture

Kirchner forgot to say "read my lips" when she vowed to burn the vulture funds, so nobody believed her.  What she said: "ruled out paying holders of defaulted bonds in full" and 'used the term "extortion"'

Does that sound like someone who is going to pay?

http://www.independent.ie/business/world/argentina-on-brink-of-new-debt-crisis-as-president-vows-to-burn-bondholders-30363087.html

 

Looks like Judge Greasy-Palm may not get to make those million-dollar speeches after all.

Mon, 07/28/2014 - 09:26 | 5012267 LawsofPhysics
LawsofPhysics's picture

Now that's a dirty shirt....

Mon, 07/28/2014 - 09:27 | 5012270 jubber
jubber's picture

Surely Spanish banks are up to their nek in this and Espirito...?

Mon, 07/28/2014 - 09:35 | 5012293 TalkToLind
TalkToLind's picture

Kirchner should grow a set and Iceland those bitchez.

Mon, 07/28/2014 - 09:35 | 5012294 laomei
laomei's picture

Funny how that happened... junk bond buyer turned holdout cries and cries, and just after quite a few multibillion dollar deals with china go through, bam, time to skullfuck it for daring to turn to someone else.

Mon, 07/28/2014 - 09:42 | 5012310 rsnoble
rsnoble's picture

We'll see.  So far it's been nothing but recovery, no defaults and no civil wars allowed.

Mon, 07/28/2014 - 09:43 | 5012315 jmcadg
jmcadg's picture

Serves Singer right. If you want to try and screw a poor nation even more, there are risks. 

This is where the rubber meets the road. Don't sucumb Cristina, this hedgefuck needs to understand, he don't get a free ride.

Mon, 07/28/2014 - 09:46 | 5012334 rsnoble
rsnoble's picture

BTW i'd like to see the Argentine bitch and Hillary in a straponmatch.

Mon, 07/28/2014 - 10:03 | 5012375 espirit
espirit's picture

Hitlery still thinks 'hers' is teflon coated stainless steel, and that shit won't stick.

Mon, 07/28/2014 - 10:21 | 5012440 bustdrs
bustdrs's picture

Does anyone acknowlegde Citibanks role in "holding" or "distributing" Argentinian Soveriegn interest payments and the roll on effects......

Mon, 07/28/2014 - 11:34 | 5012812 Hannibal
Hannibal's picture

WTF< not paying up?

Time the bomb Argentina into the dark ages. (sarc.)

Mon, 07/28/2014 - 13:38 | 5013407 syntaxterror
syntaxterror's picture

Fuck the two hedge funds involved in this scheme. I hope they start jumping from tall buildings soon.

Mon, 07/28/2014 - 13:39 | 5013413 TNTARG
TNTARG's picture

do you want to know how Argentina was indebted in the first place? Try to search the Junta bakced up by CIA/US.

Then the "exeptional"  IMF suck,r Menem. Then the pathetic Alianza and DeLaRua coward flying president who resigned in 2001. Since then, it was about renegotiating the default. Done. Then NML bought the remains off the defaulted bonds (little money) for chips. But wants the whole full bond price ´+ interests. Those are defaulted bonds. Have to be negotiated.  Fuck Griesa. I hope the gvt don't let them sunk Argentina's economy for another decade.

Like sombody in this World was acting according to the law.

Mon, 07/28/2014 - 18:39 | 5014926 Argieboy
Argieboy's picture

So true.. Very right. Now you smell like a Kirchnerist.

Mon, 07/28/2014 - 23:37 | 5016080 TNTARG
TNTARG's picture

See,  fallacies don't easily work with me.

If I had to choose an "ist" it would be Humanist. But the truth is the truth and has no colours.

Pretty free thinker as I pretend to be - not always succeeding -, rather Cartesian regarding method, I don't think people need Leviathans.

I believe Human Evolution will come, on time. As long as we don't exterminate ourselves. The Earth gives us a lot of time.

 

(Sorry for the digression)

Mon, 07/28/2014 - 19:54 | 5015157 honestann
honestann's picture

You know how far down the rabbit hole the world has gone when... you find the only viable position is to hold your nose and advise someone like Kirchner to default.

The funny thing is... if only nobody would ever loan any money to Argentina again, that part of the planet could have a chance to get rational and make something of that spiffy part of the world.

The problem is, the IMF and other nefarious scumbags will soon show up again after the default and... offer more loans.  Sheesh!

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