Do Cry For Argentina: It's Not Borrowing Its Way To Prosperity....Again!

For Argentina, it started with a bang. On April 19, 2016, for the first time in a decade and a half the nation was able to source global bonds. The legacy of old default was finally put behind, and a then-record (for EM’s) $16.5 billion was floated to equally impressive demand. In this day and age, there is no memory when a few hundred additional basis points in yield are in line.

Having reestablished this “dollar” conduit, Argentina has been back several times more. This past June, they even managed to sell $2.75 billion of a 100-year bond. As if the country weren’t some dangerous credit, brokers booked about $10 billion in orders for that sale.

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.