This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Argentina May Defy New York Courts

"I think it will be important for people in Argentina to realize that offering a new bond is totally outside of what the court asked for, demanded or would accept," Rosner said. "They have to know that they can't win this."

President Fernandez and her economic team are proud of sharply reducing the country's foreign debt burden, and never failing to meet payments on the new bonds her government issued in exchange for the defaulted debt. But it still owes tens of billions to many other creditors, and until it settles those debts, its economy will be strangled by punishingly high borrowing costs, Rosner said.

Because of its deadbeat reputation, Argentina has had to look inward, essentially borrowing from its own people, fueling inflation, and trying to centrally manage the increasingly isolated economy by frequently changing the rules for exchanging currency, importing and exporting goods, setting prices and paying taxes.

Increasingly, Argentines are feeling trapped by the government controls, and foreign companies are being scared off.

Argentina's largest single foreign investment, a $6 billion Rio Colorado mine, railroad and port project to deliver potash fertilizer to Brazil, was suspended this month by Vale S.A. (VALE), the world's second-largest mining company. Executives blamed Argentina's unpredictably high inflation and currency controls for laying off more than 4,000 people, despite having invested more than $1 billion and completed 40% of the construction.

"The controls are being put in place because of these unnecessary ideological battles. My attitude as an analyst is, I really don't care whether Argentina is correct ethically, or intellectually. It doesn't matter. At this point, they need to take care of their population," Rosner said. "How do you provide for the people? You bring in foreign direct investment and have Vale staying in the country and building out."

"There's an easier way out," Rosner said. "The government could say 'you know what, we fought for what we thought was fair and equitable, but for the greater good of Argentina, we have to put this in our past so we can normalize our relations with international markets, so that we can start having negotiations with the companies that have judgments against us with World Bank arbitrators, with the Paris Club, with the IMF, because at the end of the day the only way we can protect the lives of the Argentines we have sworn to protect is by not going down this dangerous path.'"

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs