Evil Diaries: Don’t Cry For Me, Argentina

For some reason Argentina has emerged in recent months as a possible investment arena. It is the eighth biggest country in the world and has massive resources both pastoral and mining-derived. But, most important of all, the new president Xavier Milei is compelling his fellow countrymen to grow up and be common sensical. And just to rub it in he refuses to run a deficit on his budget since he knows perfectly well that if he does so Argentina slides back to its old ways.

Most are unaware that Argentina has defaulted on its government’s debt about eight times since 1820. As a result it takes a real gamble of faith for anyone ever to advance a brass farthing and Milei now reckons he has caught Argentina’s economic failure right at the bottom. He may well be right and I hope he is.

In the nineteen-twenties Argentina was as rich as America and the architecture reflects this. But it was run by some right little rotters. They borrowed more for Argentina by getting some Wall Street bank to raise the necessary whilst they took a percentage for themselves – I suppose it was termed introductory commission. Further, I expect the man in the street just did not know about this conduct.

Anyway, it is all a question of how to get involved. Here, I am not an expert. But those wishing to buy what, time and again and all over the place, looks very cheap (which it may be given how out of favour Argentina has been) are advised to ask their broker and stand well back. Be very careful.

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A grouping self-styled the “Audit Reform Lab” of the University of Sheffield claims that audit firms have failed to warn of 75% of “big company collapses”. Well, it depends upon what is meant by big company or warning. I doubt if the Audit Reform Lab has a clue. They just like a bit of publicity.

In my experience it is the shorters who give advance warning. They are betting their own money and have every incentive to judge correctly. Knighthoods all round I suppose. It would only be fair.