Default
The U.S. government will hit the statutory limit on its ability to borrow sometime between mid-February and early March, and unless Congress authorizes an increase in the debt ceiling, the government will not be able to meet all of its financial obligations. While the political squabbling has garnered most of the headlines, there are real financial consequences at stake. In a poll conducted earlier this week in the CFA Institute Financial NewsBrief, we asked readers how they expected financial markets to react if the U.S. failed to resolve its debt ceiling crisis and subsequently defaulted on its debt.
The collapse of interest rates to record lows in the United States, the United Kingdom, the European Union, Switzerland, and Japan has inflicted pain on those who rely on interest income.
“Financial repression” is the watchword for this… READ MORE ›
Editor’s Note: The complicated story of Argentina’s national debt has some of the character of a spy novel. There is a secretive hedge fund, political unrest, and a court ruling that… READ MORE ›
To understand why a judge in New York has to force Argentina to pay its sovereign obligations, we need to go back to 2002, when Argentina defaulted on its debt.