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Argentina Defaults
It's all over but the crying: having explained Argentina's position (i.e. not giving to so-called vulture funds), Economy Minister Kicilloff explains:
- *KICILLOF SAYS HEDGE FUNDS NOT WILLING TO GIVE DELAY ON RULING
- *KICILLOF SAYS HARD TO BELIEVE ARGENTINA IN DEFAULT IF HAS FUNDS
- *KICILLOF SAYS ARGENTINA CAN'T COMPLY WITH COURT RULING
- *HOLDOUTS DIDN'T ACCEPT ARGENTINE OFFER: KICILLOF
As Bloomberg notes, by defaulting today, Argentina may trigger bondholder claims of as much as $29 billion -- equal to all its foreign-currency reserves. Just remember that the last 2 days have seen 'smart money' buy Argentine bonds and stocks to all-time record highs.
Some color on what next (via Bloomberg):
If the overdue interest on Argentina’s dollar-denominated securities due 2033 isn’t paid by July 30, provisions in bond indentures known as cross-default clauses would allow the nation’s other debt holders to also demand their money back immediately. The amount corresponds to Argentina’s debt issued in foreign currencies and governed by international laws.
In a default, even a temporary one, Argentina’s economy will contract and the odds of a crisis are high, according to Marcos Buscaglia, an economist at Bank of America Corp. Money demand will become unstable as Argentines scramble for dollars, causing the peso to slump, he wrote in a report today.
“Argentina’s current weak fiscal, monetary and external conditions make the probability of the situation spinning out of control quite high,” he wrote. “Argentina’s payment capacity should not be taken for granted if it defaults.”
- *ARGENTINA'S RUFO CLAUSE PROHIBITS MAKING BETTER OFFER: KICILLOF
- NEW YORK-ARGENTINA'S ECONOMY MINISTER KICILLOF REPEATEDLY CALLS HOLDOUT INVESTORS "VULTURE FUNDS
- KICILLOF SAYS HOLDOUTS WOULD REAP 300% PROFIT IN DEBT SWAP
- KICILLOF SAYS HEDGE FUNDS WANT MORE AND WANT IT NOW
* * *
All those equity and bond gains - which hit an all time high - today, gone.
Oops:
Finally, we aren't the only ones who are let down by today's anticlimatic development. Compare and contrast with this 2001 announcement when Argentina announced is last default: a far more exuberant affair.
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oh, big surprise!!!!!!!!!!!!!!
GDP 4% - that fixes everything.
Just wait Maradona and going to blame Messi for it, you know, not trying hard enough.
We will now see if in the case of Argentina the Brics can get their financial act together.
Also, if Mutti Merkel will make her play of proposing a deal with Putin on Ukraine; recognition of Crimean annexation against normalisation in rest of Ukraine and a global gas deal for EU.
Things will come to a head in the next few months.
As Greenspan has just warned the US admin : there is no financial buffer space left for major unforseen defense spending ramp ups.
The financial crisis world wide can spiral in coming months on the backs of Gaza and Ukraine and Argentina.
Its getting high stakes at the Putin/Obama poker table!
Just remember that the last 2 days have seen 'smart money' buy Argentine bonds and stocks to all-time record highs.
Thank you Tyler! the best laugh I've had in a long time.
dominoes
Now everybody gets a reminder about why CDS are for SELLING, not BUYING. Wait for it - 'OK, this IS a default but its NOT a credit event'.
And Andres Cantor upon hearing the news.
https://www.youtube.com/watch?v=8AMIrxx3gx8
Argentina 1
USA 0
Russia have a new best friend
Black Swan I: Portugal's Banco Espirito Santo
Black Swan II: Argentina Defaults
No, in 2008 maybe, but now the Central Bankers of the world have discovered a new and powerful mechanism for preventing disruption of the system - I think the technical term for it is 'lying and denying there's anything wrong'.
Yeah, they do.
It’s not just hedge funds that own Argentine bonds http://www.marketwatch.com/story/its-not-just-hedge-funds-that-own-argen...
Just rename the country to "Urgentuna" and tell all the creditors that the debtors 'went that-a-way'!
It's a hop, skip and jump to Uruguay. Bet there will lots of flow from Buenos Aires to Montevideo tomorrow. Uruguay is where the wealth will run and hide.
Price controls on toilet paper should fix this,
Looks like they took the soccer loss a little hard?
the maggots win again
This won't happen--Paul Krugman has assured us that countries that have their own currency can't default.
You forgot the 'Nobel Peace Prize winner .....' part!
Argentina can't print dollars.
Why not?i or at least FRN's - competition for the Fed
They can't afford the green ink... Bankrupted, remember?
...and Argentine Vice-President Amado Boudou is charged with running the printing presses...so no more printing allowed.
I think Argentina should be OK during the coming societal breakdown... but don't follow them as close as I should... so not sure about the Vice decisions.
Yes, they have very good agriculture and land. They can survive any economic collapse independently (except for war).
From 1860 to 1930 it was believed Argentina would become the United States of South America. Their income level was close to both US and UK during those growth years.
Dolars.
And he's right. Krugman is wrong about a lot of stuff. This isn't one of them.
Where's the beef?
The US would have defaulted a long fucking time ago it weren't for the unfettered money printing.
That's why the US will never default nor was it ever a possibility.
if you like your default, you can keep your default!
Signed,
Yellen the evil albino smurf is a cunt
Evil albino smurf...
williambanzai7, report to the drawing room. williambanzai7 (you know what Christine would say about that 7, right)...
williambanzai7, report to the drawing room. williambanzai7...
Strategy of the worst...
They have no choice but to default, otherwise they risk hyperinflating the Peso.
Defaulting is the right choice under the circumstances, and this is what needs to happen in a bunch of other countries, so that all this bad debt can be liquidated, and then countries can begin to make a true recovery.
All your pesos, I mean TP, are belongs to us
Time for the holdouts to begin asset seizure proceedings on Argentine embassy and consulate buildings?
If the holdouts were really clever they would have loaded up on Argentine CDS before beginning court proceedings. Then they could make money regardless of the Argentine decision.
Maybe they did?
Socialism does not work. It never has, and it never will. This will happen every single time from now until forever. Can we please try something that is not completely fucking retarded now?
It's in their DNA!
Then they are destined to fail and turn to dust.
Why isnt gold soaring? Oh, thats right..fuggin Bizarro World!
It's for the children..........
Around the globe banksters are hanging themselves. Let's REJOICE
When you speak of defaults- let us go Alphabetically
America is the biggest ever defaulter in history.
With all data manipulated, S& P & Moody's as accomplices, with all Congress & Senate complicit it is shown as still credit worthy.
Now the problem is not US$29 billion- Argentina's default amount. The problem is what derivative bombs will be triggerred.
Thank you Zioputians and The School of the Americas. How long can you keep it hard fucking the Argentinians? When will you get tired of that aged hole? Fuck you State Department. Fuck you all. Don't cry for me.
China's going to help them out soon.They take a certain percentage of gold,oil,gas production in exchange for a level of development.(like highways,hospitals,water treatment plants,shipyards etc.)They've been doing the same in Africa where the IMF and World Bank have basically raped the entire continent for decades.They're just going to have to switch over to selling to China.China will take every mineral in the ground that Argentina can produce.Just Chinese Currency though,no Dollars returned to Yankees anymore.
In May Exxon found the first shale in Argentina. Teach your kids Russian and Spanish, Gazprom is coming.
The idiot judge should take a bow.... Judges are as arrogant as (some) Presidents.
Wow, I've never seen an announcement like this before, seriously. I was expecting that there would be boos and hisses in the parliament when the default was announced. Everyone was cheering.
Wow, I've never seen an announcement like this before, seriously. I was expecting that there would be boos and hisses in the parliament when the default was announced. Everyone was cheering.
Vulture Funds being given the Sicilian Salute:
I'm lovin' it!
I heard that they got good steaks down there, and I'd love to fuck their leader!
BTW...all their top cabinet looks like they came off the front page of Vogue.
Maybe they need Madonna or Lady Gaga to run things for a while down there until it blows over.
More proof that government can only ever produce poverty, misery and death.
Any indication otherwise is temporary and an illusion.
It turns out the so-called smart money was not so smart after all. It appears that they know very little (not smart) about Argentina, the law and history. They were blinded by their own greed. Serves them well. Now, what about all those credit default swaps?
why is no one asking who wrote the swaps on these Arg bonds?
Hold on! I thought the GERMANS were in charge down there? Or is that southern Brazil I am thinking about?
Hope they stick it to the banksters but good.
Tishman Speyer.
Futs "smashed"/"crushed"/"slammed" lower by .05%
99.95% of default was already baked in
Yes we Can !
Even vultures gotta eat sometime.
Guess it's not this time. Maybe they will finally learn that a horse skeleton has no meat on it.
With the IBEX at 4year highs and Spanish bonds at an ATL you would expect a little turmoil in the Spanish market tomorrow??? they have never been shy in investing in dogshit and you would expect them to be top of the list of creditors and bondholders as well as the biggest shareholders in Argentine Banks...? this could also have repercussions if there is a major move on the Japnanese who hoovered up all these Spanish bonds in the last year, interesting to see what occurs...NO REACTION WHATSOVER sofar to Spanish futures
The Best Way to Rob a Bank is to own one.
- William Black.
Pull the reserves/deposits and fail it! Shift all the reserves to untouchable overseas accounts.
The infinite bailout mentality is failing, eventually the currency fails. Wait and watch Japan implode first.
fuck those hedge fund cunts....non-payment is better than a bullet in the head....I think
another thought Spanish Banks as Portugals biggest creditor will also be on the hook in any Espirito blow up....
And now the main hedge fund dick head is on King World News predicting fuckin social unrest
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/7/30_Bi....
He'll be the first one to get strung up.
Will have very little effect outside the country. It's been baked in for a while...
Think again: Argentina didn't default, it has paid all its commitments, the financial system was defaulted by Griesa.
how ridiculous all this would be if argentina 'd won the world cup.....