Argentina: Cristina gives bondholders the raspberry
By Fausta's Blog on August 01, 2014
As I predicted, Argentine Leader Defies Wall Street for Main Street Argentines awoke Thursday to find their country was once again a financial pariah after the populist President Cristina Kirchner stared down Wall Street hedge funds and pushed her country into its second default in 13 years. Very little downside for her, since Her refusal to settle with bondholders owed $1.6 billion could prove politically expedient in the short term: It distracts from Argentina’s slowly crumbling economy and shores up her support among many working-class Argentines who form the base of her Peronist movement, economists and analysts say. Higher inflation, deeper recession? . . .