Daily Lessons from Life 25-26 July 2014 - Argentine default looms as time runs out for debt deal

MH12 Updates - Dutch and Australian readying its MH17 forces to protect the Dutch-led investigation team and conduct root causes analysis of the crash.

"Argentine default looms as time runs out for debt deal - Reuter 26 July 2014

BUENOS AIRES - Argentina looks set to default on its debt for the second time in 12 years next Thursday as negotiations with "holdout" investors seemingly go nowhere and neither side shows signs of blinking first, though a last minute deal can't be discounted.

Latin America's No. 3 economy has for years fought the holdout hedge funds which snapped up its junk bonds after its $100 billion default in 2002 and then refused the restructuring terms, suing for repayment in full. But time is up. After a slew of legal setbacks for Argentina in US courts, the country has just days to comply with a 2012 ruling by US District Judge Thomas Griesa to pay $1.33 billion plus interest to the funds it calls "vultures.""

Maybe Uncle Sam to print some money to 'pay' the 'vultures' who are US hedge funds (confirmed?)?

Lessons for me are:

1. I am too amateurish to understand this international finance thingy! 'Owed money pay money' is perhaps the best lesson every borrowers MUST remember. There is no free lunch!;

2. On reflection, it is true that this is NO free lunch? Maybe someone is enjoy an 'easy lunch' if not a 'free lunch'!? Maybe the lenders should be smarter and stricter instead of giving finance to someone who probably should not be given any! Or to pay for housing for investment when housing as a home has not even reach a high percentage of the population. For me when one says: "This is my home." it means it has been FULLY paid up and not on mortgage! Many like the definition of 'This is my home.' with 'paid the deposit' and will pay the instalments until maturity with NO issue! Well, this is NOT the case in most cases! This is especially true when 'properties' bubbles' burst!;

3. many countries had threatened to hit the wall over the last few years. e.g. Spain, Italy, etc but all were rescued by some central banks issuing MORE money. As long as this route is still easy and popular, no country will be allowed to go bankrupt. Just print the money. It will worsen future situation and generation but nobody will care. This is especially so when their incentives are based on current short term goals only!!

Will Argentina be allowed to go bankrupt or just issue some money to lend it so that they can pay the vultures. If it is the latter, it will be merry-go-round till the music stops and those exposed have to account for that.

High international finance sometimes look and feel like just a game of the power and privileged! Sad but true!!