Article Image

IPFS News Link • Scams

Why you're likely exposed to one of the dumbest investments in history


Last June, in one of the most egregious displays of economic insanity, Argentina was able to raise $2.75 billion by selling bonds with a ONE HUNDRED YEAR maturity.

Even more miraculously, the bond turned out to be wildly popular with investors.

So basically investors willingly forked over billions of dollars to a country that has a history of defaulting on its debt, confiscating private assets, and engaging in rampant corruption… for an entire century.

It's as if everyone was oblivious to Argentina's past. The country has defaulted twice just in the last twenty years, and eight times since its independence in 1816.

Did you know? You can receive all our actionable articles straight to your email inbox... Click here to signup for our Notes from the Field newsletter.

So the chances that Argentina DOESN'T default within the next century (or even the next decade) is slim to none. And slim's out of town.

11 months later, reality is starting to set in.

Investors have begun to realize that Argentina doesn't actually have any money, that inflation is more than 25%, and the central bank has blown through $8 billion (more than twice the amount of the bond issuance) trying to prop up their weak currency.

Oh yeah, and the Argentine government has asked the International Monetary Fund (IMF) for an emergency $30 billion credit line to remain solvent.