As we were saying: Argentina, the gift to teachers that keeps on giving.
From one of Kim Ruhl’s students: Elliott Capital Management, a hedge fund run by Paul Singer, seized “ARA Libertad, a training ship owned by the Argentine navy,” in Ghana. Why? Because it owns bonds on which Argentina is in default. Argentina’s response, quoted from the same source: “The Foreign Ministry reiterates that it is the decision of President Cristina Fernández de Kirchner to not bow before the international and local attempts at extortion.” See also here. One might ask: Who’s the pirate here? (Please show all your work.)
Singer is apparently known for buying distressed debt, funding Republican causes, and supporting same-sex marriage in New York. Fernandez is known for, well, being an Argentine leader and eating pork. LOLs to follow, as my kids would say.
Update (Oct 11): nice Forbes article.
Update (Oct 21): the military intelligence director resigns, the crew evacuates, and the government complains.
Update (Oct 23): two pieces from Planet Money.
Update (Nov 4): nice piece (in Spanish) about how creditors get leverage in sovereign defaults.