The investment banker magicians and political manglers have been up to their usual handiwork in South America (as they have all over planet earth), pretending and extending, prestidigitating debt into “assets” and hiding toxic levels of debt “off book”. Except try as they might, more debt does not cure more debt (no matter what you rename it as) and the cash flow crisis continues throughout the real economy.
Argentina’s debt default raises the prospect of the Latin American economy sinking further into recession – a worry weighing on sentiment in European markets. As Joanna Partridge reports, the default – Argentina’s second in 12 years – came after last minute talks with holdout creditors failed. Here is a direct video link.
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