World economists call on US Congress to take action on the Argentina/holdouts rulings

Friday, August 1st 2014 - 07:57 UTC

Full article 12 comments

Over 100 economists, including Nobel laureate Robert Solow, Branko Milanovic and Dani Rodrik called on the United States Congress to take action to mitigate the harmful fallout from the recent ruling by Judge Griesa of the U.S. District Court for the Southern District of New York that requires Argentina to pay holdout creditors at the same time as the majority of creditors. Read full article

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Voice
....looks like I have over 100 Economists agreeing with my views....;-)
not like the idiots on here....
Aug 01st, 2014 - 08:46 am - Link - Report abuse 0
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Conqueror
Just goes to show that “economists” have little knowledge of the world.

Demonstrably, Congress has no authority over the judicial system. Legislation cannot be enacted with retrospective effect.

And then, as pointed out elsewhere, there is unlikely to be another “country” as crooked and criminal as argieland.

So there is no problem. Except for making argieland PAY!
Aug 01st, 2014 - 09:37 am - Link - Report abuse 0
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hurricane
One hundred economists graduate per day from Universities around the world. So what! So do people that want money to be loaned to them and then decide they just don't want to pay it back. The rule of law is what it is. It is not for banana republics.
Aug 01st, 2014 - 10:06 am - Link - Report abuse 0
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owl61
Were the terms of the 2005 and 2010 substitute bonds really “negotiated” as this economists' letter states or were the terms of 28 cents on a dollar presented to existing bondholders on a take it or leave it basis? I thought the latter. Unlike a bankruptcy court that can investigate and ascertain how much the debtor is realistically capable of paying in order to continue its commercial existence, it is my understanding that Arg simply chose the number it felt comfortable paying.
Moreover, what these economists seem to be overlooking (aside from the observation of #2 that the US Constitution prohibits ex post facto law) is that these (original) particular bonds were poorly drafted in that they failed to contain a collective action clause ( common today) and did not anticipate the effect of the pari passu clause. No future sovereign default is likely to repeat the current scenario as the contract language will contemplate and eliminate the rights of holdouts to pursue full payment.
Meanwhile, the default came and the world has not ended.
Aug 01st, 2014 - 10:19 am - Link - Report abuse 0
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Brasileiro
Finally someone with a brain between the Saxons.
Aug 01st, 2014 - 10:26 am - Link - Report abuse 0
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yankeeboy
US Congress is going into summer recess, then into election mode so they won't be back to work until 2015.

There's nobody to rescue Argentina. Nobody cares about a country being run by a lithium soaked hag and her half witted Econ Minister.

That sounds like paid “advice” and bad advice.

The Sovereign debt market is still in full swing in NYC so if something was going to show as a problem it already would have.

At some point Argentina must realize they lost and defaulted and deal with the problem instead of screeching nonsense.
Aug 01st, 2014 - 10:48 am - Link - Report abuse 0
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commonsparrow
“Argentina is willing to negotiate” that is great news, so get Argentina back around the table and don't let them walk out no matter how hot the questions get.
Aug 01st, 2014 - 11:06 am - Link - Report abuse 0
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Captain Poppy
They can and do enact retroactive legislation but there are a few limiting factors:
1- as yb said....they are going into summer recess and back to their districts
2-again as yb said.....they are in mid term election mode
3-tinman stepped on Argentina's dick when he boarded that USAF cargo plane. If you think for a moment that that is a forgotten act, think again.
Aug 01st, 2014 - 11:20 am - Link - Report abuse 0
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Brasileiro
Argentina is doing what is right! Who cares speculators funds?

The nut twist the tail!
Aug 01st, 2014 - 01:15 pm - Link - Report abuse 0
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The Voice
Voice (of Axel) , yes, those guys have obviously got economics A Levels too. Meanwhile honest folk repay their debts.
Aug 01st, 2014 - 05:05 pm - Link - Report abuse 0
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golfcronie
I'm sorry, if you can't afford to borrow money at an agreed rate, don't borrow. SIMPLES really
Aug 01st, 2014 - 06:01 pm - Link - Report abuse 0
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Terence Hill
“the court’s attempt to force Argentina into a default”.
Is simply untrue, it is a result of Argentina's contempt for the court's ruling. Moreover, it is completely in line with Argentine past practices going back to the eighteen-thirtytwo, which is to breach every agreement.
As the US chargé d'affaires Francis Baylies wrote about them “...The revolutions of these people are seditious; their knowledge, chicanery and trickery; their patriotism, their liberty, a farce... ”
Baylies held that the US should sign no treaty “...for we would abide by it, and they would consider the violation no greater offense than a lie told by a schoolboy...”

http://www.latinamericanstudies.org/argentina/rosas.pdf
Aug 02nd, 2014 - 04:20 am - Link - Report abuse 0
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