To sum up: Argentina thinks that it is not in default, and The Washington Post thinks that the hedgies got paid. Sooner or later, one or both of them will be right. Andcollective action clauses will save the world.

Twisted Logic Contagion, WaPo Edition

posted by Anna Gelpern

From today's Washington Post editorial:

And the battle between Argentina and the hedgies has certainly clarified U.S. law, to wit: If you borrow money, sooner or later, you have to pay it back.

Wait. No one got paid back. In fact, the debt going unpaid has just gone waay up. In fact, it is all looking increasingly embarrassing precisely because despite the best exertions of the legal system and zillions of dollars in costs to innocent bystanders, no one is getting paid.

To sum up: Argentina thinks that it is not in default, and The Washington Post thinks that the hedgies got paid. Sooner or later, one or both of them will be right. Andcollective action clauses will save the world.