Ongoing media coverage depicting Argentina as either an immoral deadbeat or exploited debtor are providing a contemporary version of what one of the Minor Prophets is written to have foreseen.
Market anxiety over a potential Argentine default is understandable. The possibility is real with President Cristina Fernandez, in the throes of domestic discontent, spiraling inflation and loss of key constituencies deprived of face-saving latitude to comply with the controversial ruling of New York Judge Thomas Griesa. His ruling asserts Argentina must pay $1.3 billion to a small group of bondholders - hedge fund investor Paul Singer in particular - who refused to participate in debt restructurings offered subsequent to Argentina’s near $100 billion default in late 2001-2002.
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