Argentina technical default, a brief resume.

This is not the same as 2001. Argentina has enough money to pay its debts. You need to understand that Argentina successfully managed to get 2 bonds swaps, in 2005 and 2010. Almost 93% of the bondholders accepted the payment conditions.

But a really small part didn't accept the condition. As they usually do when ANY other country collapses after a economic crisis, they bought bonds that had small value and years after the pretend to get around 1500% on revenues. This is complete nonsense.

Problem here is that this judge Griesa ruled 100% according to these guys demands. The amount to money to pay them isn't the issue here, Argentina HAVE the money, it's actually not a big amount. BUT, if Argentina agrees with this, because the RUFO clause that states Argentina cannot make a better offer than the one reached during the 2005 and 2010 negotiations, could cause a chain reaction and every other bondholder (of the 93% that already accepted the payment conditions years before after hard negotiations) could start demanding Argentina the same treatment.

That's WHY Argentina wouldn't agree this completely impossible position. Oh and watch out, because this Griesa ruling sets precedent for any other similar case in the entire world.

It doesn't mean Argentina government did everything right, of course not. BUT these guys are rapists, they don't care about countries welfare. And they will replicate this behavior every time they can.