Carlos St. James, Santiago & Sinclair, LLC

Everything the editor wrote is true about Argentina, and yet everything is as it should be: the markets got what they deserved. Therein lies the paradox. It has confounded me since the crisis emerged that while Argentina is rightly chided as an “irresponsible borrower”, Wall Street has managed to sidestep any of the blame. The Street’s Latin American financiers earned in excess of $1 billion in fees during the go-go ’90s with comparatively little risk: the world over, from the IMF to the Italian widow/investor had nothing but praise for Argentina. Yet the bankers kept pushing money on the country, who was more than happen to take it. And when Argentina’s debt ratios began getting high and US fund managers started to pass on more of the paper, the Street began looking for less sophisticated buyers, in effect dumbing down the offerings by issuing bonds in more currencies and smaller denominations. Enter the Italian widow. And now the smart money is once again sniffing around at Argentina, and why not? The markets are yield-starved; Argentina may offer attractive rates. The crisis happened a few years ago; the next one won’t be for a few more. The Street yearns for the Good Old Days of the last decade; they can be counted on to put together persuasive road shows again soon. And so caveat emptor is indeed the best way to go, but please – it is hard to stomach the bankers tsk-tsking Argentina.