Saturday, August 09, 2014

Was Argentina bullied? Why does it matter?

So first off, anyone who reads/watches/listens to the CBC for actual business analysis deserves the returns they get. I'm not sure what is so difficult to understand: when you borrow money, the people you borrow the money from expect to be paid back in full. It doesn't seem like an unreasonable expectation that you should repay those who you owed money to first (so long as they are of the same class of debt holders) - and that is more or less what a New York court decided in the case of Argentina.

Argentina used to be incredibly wealthy. So what happened? Governments spent money it didn't have to effectively bribe their own electorate. This was their own doing (Cato). Argentina is a sovereign nation with a democratically elected government. No matter how much the CBC wants to paint them as an underdog (presumably as a historical defense of their own largesse off the backs of Canadians?), this was their own doing. Other countries should take note.

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