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Investor Group: Argentina Will Lead to Armageddon

December 13th, 2010 | Categoría: Economics

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This video was produced “tongue in cheek” by American Task Force Argentina, which is “an alliance of organizations united for a just and fair reconciliation of the Argentine government’s 2001 debt default and subsequent restructuring.”

Argentine officials say the group is basically comprised of malevolent “vulture funds” that are unhappy with the way Argentina defaulted on its debt and later repaid only a very small percentage of it.

Regardless of the video’s nature, it is true that Argentina is still largely considered a pariah by many investors.

Despite almost a decade of booming economic growth and a solid outlook for the near future, Argentine debt is still viewed cautiously.

Yields on Argentine bonds are extraordinarily high given the country’s comparatively strong fundamentals.

So while many people will consider this video to be a joke, the reality is that Argentina has a long way to go before it will inspire trust and be seen as a safe bet for international investors.

Twitter: @taos

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7 Comments

The US Banks come to mind….

DonaldNo Gravatar says:

Well, the debt was fuelled by years of the Argentine military’s collusion with the US banks. Someone had to borrow all those petrodollars and someone just couldn’t resist making interest on all that debt! Bondholders LOVE the current US deficit. The more the US can spend on wars, the more bondholders can make in the end! That’s called having the last laugh!

Dave JNo Gravatar says:

Don’t forget that the Italian Postal Workers Pension and the Spanish Grade School Teachers Pensions were also stiffed for billions by the government default. Hard working and honest people in the world are suffering due to Argentine intransigence. That is why the government wants everyone to believe that all the money owed was only to the faceless bankers of the IMF. WHO really deserved what they got.

El DotorNo Gravatar says:

OK. Let’s compare some numbers:

Country: Argentina
External Debt: 108,600 million US dollars
Per capita: 2,706 US dollars
% of GDP: 35%

Country: USA
External Debt: 13,450,000 million US dollars
Per capita: 43,758 US dollars
% of GDP: 94%

Now… who is in deep shit???

Yes, I know, I know… you have the gun.

GuillermoNo Gravatar says:

Maybe this is the beginning of a new era were investors can’t just assume that investing in government debt is safe. What happens when you invest in a company that goes bankrupt? do you get your money back?

No matter how you put it or how much money Argentina has in reserves Argentina is a bankrupt third world country, look for other places to invest if what you are looking for is a strong economy/government.

Dear Taos:
wishing you and family
the best of luck for this 2011
to you and all your team.

Aside of all this turmoil that pervades us just for only 65 years…
sincerely
Mandry

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