Posted: 9/13/2014
Just read his article “Restructuring Debt Restructuring”. it is about the vultures or holdouts and Argentina’s debt.
Eichengreen already erred in the opening paragraph (emphasis added):
“The story begins with Argentina’s financial crisis in 2001-2002. There is no question that the crisis left the country unable to service its debts. But Argentina made no friends by waiting four years to negotiate with its creditors and then offering settlement terms that were stingy by the standards of previous debt restructurings.”
Everybody except Eichengreen knows meanwhile that Argentina has a history of 100 years or so of financial irresponsibility.
It is already revealing if an economist uses such loaded terms as “vultures” throughout his article!
Unfortunately, those disparaged as vultures and holdouts did the whole world and every investor in government bonds a huge favor. Please remember that Barry Eichengreen!
What is so difficult to understand for any economist that pacta sunt servanda or more specifically if someone (private individual or enterprise or government) who issues debt is obligated to pay back! It is that simple!
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