The International Monetary Fund (IMF) has suggested a Chapter 11 style of bankruptcy provision for financially troubled countries as the world's currency markets continue to shift heavily, New Zealand's The Press reported. IMF Managing Director Michel Camdessus said member governments are considering a proposal that would give the IMF power to freeze bond issues temporarily, pending negotiations between debtors and creditors. The proposal, modeled on Chapter 11 of the Bankruptcy Code, is intended to reduce default risk by encouraging creditors and borrowers to make a deal before a default occurs.
Mamma M¡a..... The Socialists are at it yet again... the give away organization is now going nuts... they are giving the keys of the bank to a bunch of kleptomaniacs, that are addicted to free money!!!
What is this??, they demand free market policies on the one hand and then as they get robbed, they are going to turn around and "protect" the guys that do not pay, rewarding them with a general liability umbrella, all you need to do is say... oh, I am sorry, I could not pay, let's re-structure... (we have done this before, have we not ??)
Who are these people? What planet have they been living in ??
Have we learned anything about the S & L Crisis in the 80's ??
Imagine attempting to enforce conditions of the Chapter 11 terms across different borders and jurisdictions... I believe that International Law will be a great field for fees in the years to come, I think I am going back to school....
I hope whoever funds the IMF must have some great contacts in the country where the money is going to end up....
I can see the faces of Mexican politicians, shining with glee, when they read the conditions under the "Chapter 11 protection" for their next folly....
The IMF is seeking to restrict access to global capital sources by enlisting the participation of major creditor nations in the proposed action.
I see the same....(But IMO they will not succeed....)
The bureaucrats seem to be losing control of capital flows, so now they are attempting to act as a clearing house/guarantor, offering safety to the lenders and a "blessing coverage" to the debtors, in case they "mess up yet again"....
However, I can not see the US taxpayer, (as far as the US part of the IMF funding goes), sitting idle as these... er... economists ? are attempting to sucker them into a worldwide future, bailout... say in another 5 years or so... (with no more money at the same time either, or glimmer of hope to do any bailout)
Hmmm... if we look at the record, they have never succeeded, they are trying to export the FDIC guarantee directly to the cave of Aladdin's 40 thieves.
The terms of default would have to be so severe, that would make such default an impossibility, or at least not attractive.... then what if there is a coup.
I can not believe they would pass such provision.....
Assuming that they pass this provision and the re-structure takes place, and then we have Indonesia do a chapter 11 re-structure.... what is next ? how would they re-structure ?? (yet again)
This is nuts !
....The proposal, modeled on Chapter 11 of the Bankruptcy Code, is intended to reduce default risk by encouraging creditors and borrowers to make a deal before a default occurs.
Yeah right !!!
You know, in Mexico they have three "proverbial lies"... er.. promises" (sorry).
1. Te pago Ma¤ana... (I will pay you tomorrow)
2. Nos vemos el L£nes en tu oficina para firmar el contrato...
(I will meet you in your office on Monday to sign the contract).
AND (the biggie)
3. "La puntita nada mas, mi amor".... (Only the little tip, my love.... as the man attempts to convince his sweetheart, to let him make love to her, pointing out that he will "do it" with "only the little tip" he, he, he....) btw.... this is true stuff, I am not making this up.
They are going to have to work with a fourth promise in regards to IMF Chapter 11 protections....., then again...I guess # 1 and # 3 seem appropriate. He, he, he.......
Stop the rubbish and do the deal now, give strong guarantees that no nationalization decrees would be effective for at least 25 years, favorable tax treatment for the same period and allow true free marketers to take over whatever project is in trouble.... what ? the whole country is the problem ?..... interesting.....
I believe we are reaching the point for drastic changes... else, I do not see an easy "out", to continue with these Mickey mouse mirrors, I do not think it would work.....
And amidst of al this, the Republicans are still trying to get rid of Clinton ? What is this.... don't they see what's coming ?
I am sorry, but increasingly I am beginning to believe that Monty Python should be running things since the current leaders are truly no better....
The three Stooges:
The president of the IMF.
The president of the Bank of Japan.
Special Prosecutor Kenneth Starr
LArry, Curly & Moe.... Take your pick. Ha, ha, ha....
I hope that it's me, I am only tired and I am not really understanding all these things...
Z.
p.s. See this
imf.org
The Moral Argument ???!!
They talk about the (ready ?),
Heavily Indebted Poor Countries... or HIPC'c for short.
Frankly it is more like the
Heavily Inebriated Countries or HIC's Sal£....
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