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Nobel Prize Stiglitz sides with Argentina in reopening the debt swap

Friday, August 22nd 2014 - 08:20 UTC
Full article 36 comments

In an interview with Argentina’s daily 'Ambito Financiero', Nobel Economics laureate Joseph Stiglitz considered the Argentine government’s move to reopen the debt swap and replace the Bank of New York Mellon with local Banco Nacion as trustee a “good call” saying the reopening would not be mandatory, “voluntarily” inviting bondholders to join the strategy. Read full article


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  • Anglotino

    The guy contradicts himself.

    Mind you he says lots of nice things about Australia. But you have to balance that with his views on Venezuela and Argentina.

    Aug 22nd, 2014 - 08:35 am - Link - Report abuse 0
  • golfcronie

    Stiglitz says “ setting clear rules in a countries restructuring processes” I don't see that.
    Surely if you borrow money you must pay it back. What do you need rules for?
    Restructuring is only a choice of last resort surely?

    Aug 22nd, 2014 - 08:39 am - Link - Report abuse 0
  • Leiard

    “The judge’s job is to interpret the law, or in this case civil contracts. Even if Stiglitz is justified in condemning the ”vulture“ funds that refused to accept the 2001 restructuring and held out for full repayment of the bonds for their greed and heartlessness towards the suffering Argentinian population, it is not for the judge to make value judgments based on emotion.”

    Aug 22nd, 2014 - 09:52 am - Link - Report abuse 0
  • ChrisR

    “Queried about the economic consequences changing the payment jurisdiction would involve, the also co-chair of Columbia University's Committee on Global Thought explained that debt restructurings are “in general” followed by a “rapid” return to international markets.”

    This person is too full of himself and isn't thinking straight, he's backing a bunch of crooks against regularised contract law. But heh, what else do we expect from an economist?

    I just love the “ Columbia University's Committee on Global Thought”. Well they don't know my thoughts looking at this nonsense, typical academics being too up themselves. And no way would this clown refer to Griesa as a “Magistrate”.

    Aug 22nd, 2014 - 10:56 am - Link - Report abuse 0
  • Conqueror

    It's always worth noting a few points. Stiglitz's Nobel Prize (in 2001) came essentially from “spying”. “research was on screening, a technique used by one economic agent to extract otherwise private information from another”. Isn't that spying?

    He used to be empoyed by the World Bank. Until he was fired. “In 2009 the President of the United Nations General Assembly Miguel d'Escoto Brockmann, appointed Stiglitz as the Chairman of the U.N. Commission on Reforms of the International Monetary and Financial System, where he oversaw suggested proposals, and Commissioned a report on reforming the international monetary and financial system”. Strange that he didn't foresee a crooked state breaking all the rules and defying a competent court.

    But he's 71 now. Senile dementia?

    Just see what he comes out with. “From an economic point of view, it is what I would have recommended. If I have an asset and want to voluntarily change it for another asset, I don’t see why not. It is the basis of the economy,” Stiglitz explained as he questioned the position by US District Court Judge Thomas Griesa in the legal dispute.

    “From a global perspective, it is not possible to understand why a magistrate gets to have the right to judge about any bond in the world. Extraterritoriality should be inacceptable,” the university professor at the Columbia Business School said.

    The answer, Mr Stiglitz, is that judges deal in law and justice. Not fanciful economic “models” where no-one gets hurt. Thousands of people are already being hurt by argieland's criminal activities. Does Judge Griesa tell you how to “do” economics? Then don't tell him how to “do” law and justice. Does your “economic model” cater for deliberate fraud? But we can see Stiglitz's overweening attitude. The law must not interfere with his version of the great god, ECONOMICS.

    Aug 22nd, 2014 - 12:12 pm - Link - Report abuse 0
  • Brit Bob

    Argentina may devalue Peso again...

    Aug 22nd, 2014 - 01:02 pm - Link - Report abuse 0
  • reality check

    That's it sorted then!

    No need for contracts, lawyers, brokers etc.

    From now on the worlds financial markets will be regulated and administered by achademics.

    Can't think of why no one thought of it before.

    Those that can do it, do it. Those that can not do it, teach it.

    Postscript. With the exceptional few who are forced by circumstances to pass on their knowledge!

    Aug 22nd, 2014 - 01:07 pm - Link - Report abuse 0
  • Leiard

    “ There is a mixture of ignorance, arrogance and ideology. These people are super ignorant. They are proud because they are very ignorant. It is an economic mess what they are making”

    Aug 22nd, 2014 - 01:16 pm - Link - Report abuse 0
  • chronic

    Stiglitz discredited himself via his role in the Fannie Mae/Freddie Mac debacle.

    Five years prior to the Great Recession of 2008, Stiglitz advised the U.S. government that the risk of bankruptcy by these agencies was so small as to be negligible. Stiglitz has never been held accountable for this act,

    Aug 22nd, 2014 - 01:34 pm - Link - Report abuse 0
  • Wallace

    @3 well said, @7 exactly

    Aug 22nd, 2014 - 01:45 pm - Link - Report abuse 0
  • reality check

    I would go even further and say that most achademics, think they have the absolute right to make decisions, though infact they have never been in position to ACTUALLY make those decisions themselves. Their knowledge is garnered from study and not based on experience.

    I am reminded of a North American Indian proverb concerning Moccasins!

    Aug 22nd, 2014 - 01:57 pm - Link - Report abuse 0
  • imoyaro

    He has zero credibility.

    Aug 22nd, 2014 - 02:10 pm - Link - Report abuse 0
  • Wallace

    “explained that debt restructurings are “in general” followed by a “rapid” return to international markets.”

    Yes, lets buy bonds from a country that still has an outstanding court order against them in New York, what can go wrong. I wonder how many of those bonds Mr Stiglitz will line up to purchase

    Aug 22nd, 2014 - 02:53 pm - Link - Report abuse 0
  • Leiard

    The Argentine is a Lilliputian market

    Aug 22nd, 2014 - 04:00 pm - Link - Report abuse 0
  • Chicureo

    New term that makes sense.
    “Este es un mercado liliputiense. Su capitalización es reducida porque desde el extranjero no pueden o no quieren abastecerlo de capital, especialmente de deuda, mientras el soberano se mantenga aislado.”
    Cristina and her economists all have tiny minds..

    Aug 22nd, 2014 - 04:17 pm - Link - Report abuse 0
  • reality check

    Sorry Chicureo.

    It's not a case of tiny minds.

    More like a case of giant egos.

    Saludo! How are you keeping? Well I hope.

    Aug 22nd, 2014 - 05:18 pm - Link - Report abuse 0
  • commonsparrow

    “I don't see why not”.... what an answer.
    Read Anna Gelpern's daily online Credit Slips. She is a GOOOD READ.
    Really good english too.

    Aug 22nd, 2014 - 05:25 pm - Link - Report abuse 0
  • Chicureo

    I stand corrected, perhaps: Little minds with giant egos would be correct.
    In a beautiful part of California for the summer climate and to avoid the Santiago smog. I yearn for my homeland and hope to return in Spring.
    Thank you and I agree. Nicely summarized.

    Aug 22nd, 2014 - 05:46 pm - Link - Report abuse 0
  • reality check

    @18 Chicureo

    Nice, I hate you, nothing personal of course!

    Still thinking of bringing my wife to your part of the world for our 30th in 2017.

    Any recommendations?

    Aug 22nd, 2014 - 06:11 pm - Link - Report abuse 0
  • Briton

    Join at your peril-

    this is one bubble that will burst badly..

    Aug 22nd, 2014 - 06:38 pm - Link - Report abuse 0
  • Chicureo

    Reality Check,
    So much to consider....
    The Atacama desert, the driest in the world is very popular, especially with Europeans that live here everything stays green all year.
    Torres del Paine at the extreme south.
    The coastal regions with superb seafood and of course the numerous wine districts.
    My personal favorite region is about 2 hours or so south by air from Santiago. The Chilean Lake District is majestic as long as you don't mind summer weather like in Scotland. The landscape is populated by lakes, volcanoes and waterfalls. Over to the east across the lakes and mountains is the most beautiful region of Argentina, which I highly recommend. The area was settled by Germans in the 1800s and their influence is strongly apparent.
    If you travel to the Lake District, you should take the ferries over a series of lakes that ends in Bariloche, Argentina. You can then drive back through the low Andes there back over to Chile.
    BTW Santiago is a great city to base your visit for a quick central Chile tour.

    Aug 22nd, 2014 - 06:50 pm - Link - Report abuse 0
  • reality check


    The lake district does it I think, does it for me and the sort of place that she who must be obeyed, would love.

    Time to search the net, start the planning.


    Aug 22nd, 2014 - 07:05 pm - Link - Report abuse 0
  • redp0ll

    I think our senile President Pepe Mujica is also aspiring to Nobel prize so Stiglitz should be in the company he feels happy with.

    Aug 22nd, 2014 - 07:07 pm - Link - Report abuse 0
  • Chicureo

    Reality Check,
    SWMBO .... Your wife's name isn't Hilda by chance?
    Good choice! Bring a rain jacket.
    I stake my reputation on recommending the following hotel:

    You will not regret it, and forget about the other options your travel agent will try for you to chose instead.
    It originally was not built for tourists....
    It was instead constructed by the ministry of agriculture exclusively for Peronist government officials to take vacation...

    (By the way, “here everything” above, should have stated WHERE everything “stays green all year”)

    Aug 22nd, 2014 - 07:31 pm - Link - Report abuse 0
  • reality check

    Just looked it up on the net and ordered booklets?

    Rain, you ever been in the UK. We have webbed feet!

    Man, breathtaking scenery!

    Nah she's not called Hilda.

    Hang on a minute I'll ask her for her permission to tell you her name.

    Aug 22nd, 2014 - 07:46 pm - Link - Report abuse 0
  • Chicureo

    Oh that's ok, better not...
    I just thought your name might be Horace Rumpole as his Hilda was nicknamed “She who must be obeyed...”

    The Chilean landscape is just as breathtaking and taking the lake ferries across the Andes is incredible.

    Aug 22nd, 2014 - 07:51 pm - Link - Report abuse 0
  • reality check

    Ah Rumpole of the Bailey!!!!

    Now I know where I got it from.

    Damn, plagiarism!!!!

    Aug 22nd, 2014 - 08:22 pm - Link - Report abuse 0
  • Chicureo

    It's a consequence of spending a great deal of time of imbibing “Chateau Thames Embankment” at Pomeroy's wine bar in the afternoons.
    I'm stuck in a somewhat similar situation at a relatives guest house with some reasonable vintages of the proverbial grapes of wrath from the Sonoma valley...

    Aug 22nd, 2014 - 08:52 pm - Link - Report abuse 0
  • reality check

    I think you would find the Dom Perignon Battersea has a finer bouquet, some what earthy, with a tinge of smokey tar, nevertheless a unique flavour for a deceptive palate such as yours.

    Could I recommend that you desist from imbibingof your hosts gin and please, ensure you return the plug from your sink and the remainder of your toilet tissue. This will no doubt facilitate the full renumeration of your deposit.

    Aug 22nd, 2014 - 09:53 pm - Link - Report abuse 0
  • Chicureo

    Yes, but the sad part is that I'd gladly evict myself back home, but SWMBO has my good conduct passage as hostage.

    Aug 22nd, 2014 - 10:14 pm - Link - Report abuse 0
  • reality check

    Oh bloody hell, tell me you didn't let her hold your wallet!

    Beunas Noches my Chilean friend, late here, have to put duck out (bloody kids nobody told me the damn things lived that long) walk the dogs and get to bed, regards to SWMBO.

    Aug 22nd, 2014 - 10:48 pm - Link - Report abuse 0
  • Chicureo

    Oh she's controlled my wallet since I was an ensign. It's the passport...sleep well.

    Aug 22nd, 2014 - 10:54 pm - Link - Report abuse 0
  • golfcronie

    “take ferries across the Andes”. And I thought that the Andes were mountains, only kidding.

    Aug 23rd, 2014 - 07:18 am - Link - Report abuse 0
  • Holdout.from.Germany

    Comment removed by the editor.

    Aug 23rd, 2014 - 02:30 pm - Link - Report abuse 0
  • Chicureo

    It's really beautiful.

    Aug 23rd, 2014 - 05:44 pm - Link - Report abuse 0
  • malen
    talks about stiglitz opinni on over vultures and so on

    Aug 25th, 2014 - 07:37 pm - Link - Report abuse 0

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