Category: Argentina

A group of American economists has dominated the debate over the policies that Latin American governments, especially Argentina’s, should adopt. Any policy they suggested would have worked better that what is in place.

With the Argentine economy quickly crumbling and the rules changing with such bewildering speed, little is certain in the debt negotiations of local companies and their creditors.

Against the odds, the best Latin American funds posted respectable returns last year. And despite Argentina?s troubles, economic fundamentals in the region?s main markets look strong and stocks and bonds stand to benefit.

For the real emerging market gamblers, Argentina offered up a wild ride last year. Many investors came out ahead, but the outlook for the emerging market asset class is uncertain.

Argentina, consumed by excessive borrowing and spending, has discredited itself with investors. Despite another bond swap, only a full rehabilitation of the sovereign’s messy finances can save the country.