The shambles unleashed by default and devaluation has
devastated Argentina's financial system, and one of the urgent
tasks facing President Eduardo Duhalde's government is to set
it back on its feet. But the statements and particularly the
actions of Duhalde and his ministers show they have little
understanding of the severity of the financial crisis or that
if left to fester, it will further deepen the depression in the
Devaluation, Default, Depression
Argentina's banks are bust and the economy is paralyzed. Everyone is going to lose in the biggest default in history, starting with the foreigners.
Bankers are a favorite hate figure for politicians
everywhere, particularly in Argentina today where protestors
trash bank branches. Duhalde told a meeting of Argentine union
leaders and industrialists that, "We have to end the
decades-long alliance in Argentina that has made the country
suffer, and that is the alliance between those in power and the
financial sector and not an alliance with the productive
sector. The financial sector is important, but in its proper
Bankers have spent...
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