Vulture Capitalist Paul Singer is all smiles

The recent election in Argentina is good news for Wall Street and the vulture capitalists. Wall Street-friendly Mauricio Macri took office as Argentine president in January, replacing Cristina Fernandez.

In 2001 Argentina defaulted on $95 billion dollars’ worth of loans to Wall Street hedge fund operators. Half of the $180 billion of the country’s debt was by created by the military junta in the 1970’s.

Vulture capitalist Paul Singer bought $48 million of Argentinian loans with a face value of $1.5 million.

Singer has demanded $1.5 billion from the Argentinian government for his $48 million investment.

The former Kirchner government renegotiated the money owed to Wall Street by issuing bonds and her administration reduced the public debt to virtually nothing.

90% of Argentina’s creditors agreed to the arrangement, but not Paul Singer.

Now, Macri will come to Wall Street and Singer’s rescue. He is expected to run up new debt, now that the banks will lend, so he will not have to raise taxes on the elite; he will settle with Singer and his friends and tie Argentina closer to Washington.

But what will become of Argentina and their people? Will Macri go after the $400 billion dollars offshored by the Argentinian elite?