U.S. Banks Are Hunting for Collateral to Back $20B Argentina Bailout

https://www.wsj.com/finance/argentina-bailout-banks-collateral-721bc2b5

by JumpCrisscross • 9 months ago

42 30 9 months ago

Terr_2• 9 months ago

I wonder if any bank executives are regretting their past political choices, now that they're getting "if you know what's good for you" demands to bail out friends of Trump by propping up those friends' investments in Argentina.

Concurrently, I imagine some Treasury staff are nervous about similar demands to "help out" from up in the org-chart. Using US government assets for private gain without Congressional approval is often 10-years-in-prison territory. (Ex: 18 U.S.C. § 641 and nearby sections.)

anon2915• 9 months ago

Well you have one party demanding adherence to their political norms or else.

And then the other party that claims anyone who's done better than anyone else is necessarily immoral.

It's a lose lose situation.

And the are the American people. Both sides demand ideological purity while doing very little to affect the material conditions of common Americans

vict74• 9 months ago

And then the other party that claims anyone who's done better than anyone else is necessarily immoral.

This is both a strawman and dismissing a real issue. Inequality is a real problem that has a corrosive effect on democracy. Also, American liberals have done little if nothing to reduce the gross inequality in this country.

So no, the guy that said “nothing will fundamentally change” is not helping reduce inequality nor demanding ideological purity in that regard.

whateveracct2• 9 months ago

isn't it $40B?

Terr_2• 9 months ago

The bank loans would be part of the Trump administration’s plan to backstop the finances of libertarian President Javier Milei’s government with a $40 billion package, including a $20 billion currency swap with the U.S. Treasury Department and the separate $20 billion bank-led debt facility.

impossiblefork2• 9 months ago

It's crazy there are currencies that aren't free-floating even today.

Ekaros• 9 months ago

Makes perfect sense for currencies that are not big enough to be moved. And I think there is two... You don't want economic issues because some sociopath decides to make some money by exploiting your currency.

impossiblefork2• 9 months ago

But that's why you let them float and I get the impression you're suggesting the opposite?

phyzix5761• 9 months ago

Is this a bailout or just regular nation to nation borrowing?

consumer4512• 9 months ago

Here is one explanation: https://paulkrugman.substack.com/p/bailing-out-bessents-budd...

CincinnatiMan• 9 months ago

That was unfortunately very light on details and could be tossed away as mere speculation. I’d love to learn more on this though.

saubeidl• 9 months ago

Making America Great Again by pawning off the country to bail out another country because the president is buddies with theirs.

noir_lord• 9 months ago

It's "funnier" than that - in September China bought no soy bean exports from the US (last time that happened was under another president, weirdly he was called Trump as well) meanwhile by far the largest buyer of soy beans from Argentina is China.

So US farmers lost a decent market for a crop they mostly grow as crop rotation with Corn which is going to require them either getting bailed out or going to the wall while the same president is backing up the country that made bank from the shift in China buying US soybeans.

I've no dog in the fight - not American, Argentine or Chinese but it feels like a weird deal for a guy who "wrote" a book called "The Art of the Deal" no?

lazide• 9 months ago

It makes perfect sense since he didn’t even write the book - he had it ghost written.

NekkoDroid• 9 months ago

I've no dog in the fight - not American, Argentine or Chinese but it feels like a weird deal for a guy who "wrote" a book called "The Art of the Deal" no?

It makes more sense when you realize he doesn't actually give a rats ass about "Making America Great Again". He is only looking to enrich himself, other rich people and advance his ideology. And for that last part he can't have Milei fail after so vocally supporting him and sacrificing tax payer money for that is something he doesn't have to think twice about doing. In that sense it would be a perfect deal for him and his allies.

Yeul• 9 months ago

Reading about Argentina's history made me lose faith in humanity lol. They just keep voting for populists constantly telling themselves this time will be different.

more_corn• 9 months ago

Are you from the US? You might not have a leg to stand on depending on how our democracy survives the current efforts to undermine checks and balances.

burnt-resistor• 9 months ago

This is totally fucking stupid. So much for the "America first", because it's billionaires and foreign authoritarian leaders first.

wtcactus• 9 months ago

So, Milei is an “authoritarian “ now.

That Overton window keeps getting narrower and narrower on that side. I’m wondering if it even lets any light in anymore.

whateveracct2• 9 months ago

lol if it's that narrow on "that" side, it's shut so tight it imploded on the other

metalman• 9 months ago

US citizens are the ONLY backing for the US dollar, and so this is something else they get to "back" and bail out, rather than say, eat

U.S. Banks Are Hunting for Collateral to Back $20B Argentina Bailout

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