4 ms·
For some reason this is hardly ever discussed. But I guess we can look to the situation in Argentina which defaulted in 2002. Oddly, there doesn't seem to have
by johnyzee 15y ago
For some reason this is hardly ever discussed. But I guess we can look to the situation in Argentina which defaulted in 2002. Oddly, there doesn't seem to have been long-term adverse consequences, most investors took a haircut or lost their money. The country had a deep depression for a couple of years but have been doing pretty well recently. I hope someone with more information can chime in on this.
- oelewapperke 15y agoGovernments are sovereign entities. They don't have to abide by laws at all. So they can just declare your bonds worthless (actually all of the branches can : the parliament, justice system and the executive can declare your bonds worthless) The only consequence this has is the long-term viability of those bonds. The problem is that Greece needs fresh borrowed money just to make the interest payments on it's currently borrowed capital.