The official scorers rule:
Default for ye, Argentina. Just as it says in the text;
The International Swaps and Derivatives
Association ruled Friday that sellers of credit default swaps tied to
Argentine sovereign debt must pay buyers, judging the nation's failure
to pay bondholders Wednesday a "credit event."
How much to be paid is yet to be determined.
ISDA said in a statement Friday that it would hold an auction to determine the size of the payout, though it didn't say when.
We wonder if the
Friends of Jonathan Gruber are a little unsettled by the precedent;
The ISDA didn't
immediately detail the reasoning backing up the panel's unanimous
decision, but Argentina's bond documents say that the country can only
be considered to have satisfied its obligations once bondholders get the
money they are owed. While Argentina had deposited money with an
intermediary, that money had not reached holders, thanks to a U.S. court
ruling.
The
Atty' General of Oklahoma must be smiling, if texts are going to taken to mean what they say. Just for example, the sections of the PPACA that authorize tax subsidies to be paid to purchasers of health insurance on state created exchanges. Which authorization is absent from the section creating Federal exchanges for states that don't agree to run their own.
FedGov: It is merely a drafting oversight that the legislation supporting our actions sometimes lacks the language which would support our actions. We will do what we want in the meantime while Congress catches up to what is fair, reasonable, and necessary in our sole judgement.
ReplyDeleteIt isn't tyranny when the President does it.