Let’s all cry for Argentina…

The local press, in its usual obtuse partisan conservatism, has been lauding the US court decision that crushed Argentina, with consequences yet to fully develop.

If they weren’t so blinded by their own ideology, they might have had second thoughts: Ruling on Argentina Gives Investors an Upper Hand.

Just a nugget: "The United States Supreme Court, ignoring the pleas of the governments of numerous countries, including the United States, turned the world of sovereign debt restructuring on its head. In so doing, the court most likely damaged the status of New York as the world’s financial capital. It made it far less likely that genuinely troubled countries will be able to restructure their debts. And it increased the power of investors — often but not solely hedge funds that buy distressed bonds at deep discounts to face value — to prevent needed restructurings."

Not an isolated example of a boneheaded decision by a US court, unfortunately.

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