by Merry Pham
The ratings agency Standard and Poor's declared Argentina to be in default today after the country failed to reach a negotiated settlement with hold-out creditors. It is Argentina's second default in thirteen years
"It's unfortunate that it came to this. Argentina decided it was better to default than to settle. Argentina will likely find alternatives now to pay the restructured bond holders.
"Because of the precedent this case sets there are a lot of losers and few winners. Legitimate investors and poor people lose the most. Argentina never would have defaulted and hold-outs would have been forced to sit at the table if we had an international bankruptcy process in place. In the coming months we'll continue to see the G20 to the IMF try to stop this extreme predatory behavior.
"These predatory actors are only able to operate because our financial system is too much like the wild west."