Stock Market Set To Sell Off Next Week: Argentina Nearing Technical Default, EU Budget Summit Heading Toward Failure, Black Friday Retail Sales Fell Nearly 2%, 30% of Businesses Had Put At Least Some Projects On Hold, And A Very Bad Fiscal Cliff Idea Is Floated

Sunday, November 25, 2012
By Paul Martin
November 25th, 2012

Argentina Nearing Technical Default

from soberlook:

Based on Argentine government’s belligerent behavior toward the rest of the world (see discussion), the odds of the $1.3bn showing up in the escrow account next month are not great. That, combined with the Appeals Court (as well as whatever other appeals Argentina can come up with – possibly appealing to the US Supreme Court) agreeing with Judge Griesa, will put the nation into default – again. By the way, those who still don’t think Argentina’s government is acting like thugs toward foreigners, just read this story from the Mail.

The market-implied peso exchange rate (the so-called “shadow” exchange rate – see discussion) now puts the peso at 42.3% discount to the official rate as the currency continues to decline. Should the technical default take place, the US will begin freezing Argentine government’s dollar accounts – which will push the shadow exchange rate to new lows.

EU Budget Summit Heading Toward Failure While Demanding 8000 Layoffs At Spanish banks

The Rest…HERE

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