Argentina defaults (again)

[Velasco]

Thanks, Paul Singer.

[Velasco]

The Argentinian government is blatantly incompetent, but you should know that Paul Singer was hanging around before Cristina took office. Even a former chief economist of the IMF -who doesn't say good things on the debt restructuring a decade ago- admits that "Argentina is not solely to blame for its latest debt default" and "the global system for sovereign-debt workouts remains badly in need of repair"

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http://www.theguardian.com/business/2014/aug/01/argentina-blame-debt-default

On the other hand, Paul Singer is a billionaire who buys debt bonds when prices are down, and later demands their collection with astronomic profits. Apparently, he sued Peru in the 90s and collected 57.4 million of of dollars, when he acquired the bonds by $10.7 million. Also, he bought bonds from Congo by $20.1 million and later collected almost $90 million. "Vulture" is a well deserved way to describe his hedge fund enterprise.

[Velasco]

Standard and Poor's and Fitch call it "selective default". However, the UN Economic Commission for Latin American and Caribbean (ECLAC, CEPAL in Spanish) says that Argentina has not fallen into default; according to CEPAL's head "default" is a matter "under dispute". I'm sorry because I don't have a link in English. Anyway, the head Alicia Bárcena comes to say that Argentina negotiated with 92% of creditors and paid them, while the remaining 8% "is imposing the rules of the game". She says this situation is a completely new experience and jeopardizes the "financial international architecture", because some countries might not have an "appetite for renegotiating sovereign debts after this".

http://www.cnnexpansion.com/economia/2014/08/04/argentina-no-cayo-en-default-cepal

On the other hand, Argentina deposited a 539 million dollars fund that did not come to the creditors, because certain judge from NY called Thomas Griesa blocked the transfer until the country does not pay 1330 million dollars claimed by the so called 'vulture funds'. If I'm not wrong, Paul Singer spent 48 million of dollars. It's about a 2770% profit!

The rhetoric used by the Argentinian government may sound atomic or bombastic, but...