----- Original Message -----
From: "Neal" <standupnz@clear.net.nz>
Sent: Thursday, October 18, 2001 4:28 AM
Subject: WARNING!!!! Argentina WILL Default In Days
The story below evidences either, Argentina is being a naughty boy and our keepers
(listed below) are going to whack his bum OR Argentina is just the lucky one in a
very long queue, OR BOTH. Those that have been on my list for some time will know I've
been expecting the lot to go ... could this be it? Well time has already told, take a look
at what your money was buying 2 years ago and then today. ... That's how much it's fallen
already. But this could be the beginning of the BIG BUMP.
Neal
WARNING!!!! Argentina WILL Default In Days Commentary: Biggest debt crisis in
years is looming
By Paul Erdman, CBS.MarketWatch.com
Last Update: 3:25 PM ET Oct. 17, 2001
SAN FRANCISCO (CBS.MW) -- The world is about to be hit with the biggest
debt and currency crisis in years.
It is only a matter of days before Argentina will default on its sovereign debt -- which
now amounts to $132 billion.
Neither the International Monetary Fund nor the Bank for International Settlement nor the
United States Treasury will step in to prevent this since none of them are willing to
throw more money down that black hole.
This default will inevitably trigger a major devaluation of the Argentine peso.
The shock waves emanating from these Argentine events will roil currency markets
throughout Latin America.
Brazil's currency, the real, which has already depreciated 28 percent in the year to date,
will be severely tested.
And all of this will further undermine confidence in the currencies of those Asian
countries that are facing rapidly mounting economic problems of their own as a result of
recessions in their principal export markets.
Argentina's default will be triggered by the refusal of current holders of its public debt
-- 60 percent of which are foreign institutions -- to accept a swap arrangement that would
force them to accept huge losses now and still not solve the basic problems brought on by
the irresponsible fiscal policies of the Argentine government.
To cover its domestic budgetary deficits, during the past 10 years Argentina was forced to
borrow $89 billion in the international capital markets, more than any other emerging
market.
To put this in perspective, Mexico, whose economy is twice as large as that of Argentina,
has only borrowed half that much over the same period of time. The situation was brought
to the breaking point last Friday when Moody's cut Argentina's credit
rating to below that of any other country. Reflecting this, the yield on Argentine bonds
is now 33 percent.
Main site at: http://hammer.prohosting.com/~nealking
New site "Dob-a-cop" http://odin.prohosting.com/dobacop
"But if the watchman sees the sword coming and does not blow the trumpet
to warn the people and the sword comes and takes the life of one of them, that man will be
taken away because of his sin, but I will hold the watchman accountable for his
blood." - Eze 33:6
For more background on the Argentina crisis and solution visit The Argentina
Cyberclassroom: www.cyberclass.net/argentina.htm