Argentina's crisis spawned some catchy but inaccurate
metaphors. The slowest-moving train wreck is one of the most
memorable. Many international investors saw trouble coming in
plenty of time and got out of the way. It was believed at the
time that Argentina's collapse marked the end of financial
market contagion in the developing world. As everyone now
knows, that was not the case at all.
Playing for High Stakes
Argentina's financial crisis has affected the region's
markets far more deeply than many expected. It has changed the way investors and banks approach risk in Latin America.
Brazil's public debt burden is reaching unsustainable
levels, South American companies are finding credit harder to
obtain than ever, and staying current on debt payments is an
everyday struggle for many corporations. Nobody expected a
crisis of such severity or complexity in Argentina. Uruguay's
banks are collapsing. Venezuela is on the ropes. The
implications are far-reaching since these events, especially
the disaster in Argentina, have profoundly changed how markets
view risk in Latin America.
Until recently, banks and traders would model their
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.