Argentina Seeks IMF Financing Following Yesterday's Hike in Rates to 40%.

Argentina once again seeks help from the IMF following yesterday's 40% interest rate hike.

Last year, Argentina was a favorite destination for investors. This year, Argentina is facing yet another currency crisis.

A run on the Peso started last month as investors soured on the country. To combat the run, the Argentine central bank hiked rates to 40%.

“The market has been in total panic mode the last few days,” said Brendan Murphy, head of global and multisector fixed income at BNY Mellon Asset Management North America.

The declines are the latest sign that rising U.S. interest rates and a strengthening dollar are prompting investors to pull money out of some of the world’s riskiest markets, especially those with the largest trade and budget deficits.

Other higher-risk markets like Indonesia and Turkey also have suffered big declines in recent days. Standard & Poor’s Global Ratings on Tuesday cut Turkey’s sovereign-debt rating further into junk, citing the country’s debt, rising inflation and volatile currency. Turkey’s main stock market has fallen 4.7% last week, while its currency has declined 4.4%. Indonesia’s JSX Composite Index slumped 6.6% the week ending April 27—the most of any major index globally, according to FactSet—when foreigners fled the market.

Argentina Calls IMF

Once again, Argentina finds itself in a currency crisis. Reuters reports Argentina president says seeking financing from IMF.

“Just a few minutes ago I spoke with Director Christine Lagarde, and she confirmed we would start working on an agreement today,” Argentina’s President Mauricio Macri said in an address to the nation.

Argentine Inflation

$30 Billion Needed

Honey, the IMF is Here

Mike "Mish" Shedlock

Governments need not concern themselves with the whims of the commoners.

Aside, I wonder when this comment section will be compatible with obscure entities like Internet Explorer and Firefox? It’s getting tiresome to need to switch over to iOS to make a comment. Guess some website designers need not concern themselves with lowly blog participants.

Must be time for the US/NATO to organise a regime change.

This is what results when economic liberty is traded for financial “security.” Enjoy the safety net, all.

Cue the current crop of Peronists and coach them all on the wicked foreign capitalist pitch...oops! Hold off until we've got these IMF idiots in tow. How'd we end up busted here this close to our last default? Somebody's got some splainin' to do...

Argentina elected a soap opera actress to be their president, TWICE. People get what they deserve.

Unfortunately, yes, then further down the G numbers. Starts at the margin and works inwards.

And here's the script for their IMF pitch: It's not our fault this time, guys. The Fed held rates so low for so long that even we could float 100 year bonds; How could we resist?

Peronist, Corpororatist, Crony-Capitalist, Socialist ,,,,all desire one thing. The fruits of you labor. Slavers, all.

This is all right out of the book, "The Creature from Jekyll Island."

But, hey, what’s not to like about 3% 100 year bonds? I mean, patriotic duty calls.

They could .... but that's no fun. And it restricts the ability of those in charge to help themselves to the contents of the country's modest slush-fund. Mr Macri is determined to have a bigger Swiss bank account than de Kirchner.

Mauricio Macri is the president of Argentina, he ( not she) is a former Civil Engineer, you might be mixing with another country.

Global debt 233 trillion +

And rising

Where the hell is Paul Singer when you really need him?

Current president Mauricio Macri is a man. Previous president Cristina Kirchner was a lawyer and a career politician. Before her, Nestor Kirchner was a lawyer and a career politician. Before him, Alberto Duhalde was a lawyer too, etc...

It seemed like Macri was on the right track. They ought to dollarize. If you don't have the dollars, you can't spend them.