Argentina: Debt Default is a Solution, Not a Problem

Unless you just returned from holiday in some ultra-remote region lacking newspapers, television or internet access (is there such a place?), you are aware that the government of Argentina defaulted on its external debt on Wednesday. A New York federal court provided the immediate cause of the default with a ruling that rendered illegal an agreement reached between the Argentine government and creditors holding over 90% of the country’s external debt.

The principal litigant bringing the case against the government holds less than US$2 billion of the Argentine debt, which by comparison makes a tail wagging a dog seem a credible anatomical interaction. MNL Capital, never lent a cent to the Argentine government (nor to any other). It acquired its one-billion-plus Argentine bonds on the re-sale market, purchasing them at far below face value.

See more at: http://triplecrisis.com/debt-default-is-a-solution-not-a-problem/#sthash.JZ2jveGD.dpuf

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