By Matt Levine – And the other day Argentina’s government introduced a bill in parliament to do a debt exchange to get around Judge Griesa’s orders, which he specifically told it not to do.
So yesterday (Aug 21) the holdout bondholders went to court to try to get Judge Griesa to hold Argentina in contempt, and Judge Griesa basically said (pdf), well, this is pretty contemptuous, but he still didn’t hold Argentina in contempt.
Because what good will that do? They’ve ignored him so far. more> http://tinyurl.com/ld2uzqs
Posted in Banking, Economy, Leadership, Regulations
Tagged Argentina, Capital, Financial crisis, Government, Industrial economy, Leadership, Monetary policy, Regulations
By Tim Fernholz – The whole reason for Argentina’s 2001 default was the string of currency crises in Asia and South America in the 1990s, with the IMF and other international financial leaders having bungled their responses to a series of problems in developing economies.
Now, because the courts didn’t provide a pathway to a settlement, some say that New York’s status as a center for international finance may wane.
But why did Argentina issue its bonds in New York in the first place?
In no small part because people with money trusted US law more than that of Argentina, thanks to the country’s history of erratic economic policy. That suggests the real villain is … more> http://tinyurl.com/pao4nwk
Posted in Banking, EARTH WATCH, Economic development, Economy, Education, History, Leadership, Media
Tagged Argentina, Banking reform, Capital, Debt, Financial crisis, Government, Monetary policy, Regulations, United States
By Alistair Osborne – It would take place late on a Friday night, after the markets closed, or possibly Saturday morning. It would also signal the start of what Saltiel* sees as the “containment” phase of the operation – before the lengthier “resolution” stage.
Much would then happen simultaneously. Greece would announce its decision, declare a two-day bank holiday – as Argentina did when it defaulted in 2002 – and convene an emergency session of Parliament. Assuming MPs rubber-stamped the exit (admittedly no foregone conclusion in Greece), new laws would be passed governing the details of an exit. more> http://is.gd/IJaS9e
* Miles Saltiel, the lead author of the Adam Smith Institute’s entry for the Wolfson prize.
- Greece should exit the euro, says Treasury Select Committee chairman Andrew Tyrie (telegraph.co.uk)
- Euro Leaders Need to Step Up Austerity, Finland’s PM Says, Kati Pohjanpalo, BloombergBusinessweek
- Euro Crisis EKG: Danger Signs Return to Europe, [VIDEO 1:51] Bloomberg
- Through the eye of the storm, Economist
- Spain May Reignite Euro Debt Crisis: Monti, Patrick Donahue, Businessweek
- Monti Signals Spanish Euro Risk as EU to Bolster Firewall, Patrick Donahue, Bloomberg
Posted in Banking, Business, Economy
Tagged Adam Smith, Argentina, Capital, Currency, Deficit, European Central Bank, European sovereign debt crisis, Eurozone, Greece, International Monetary Fund