I’ll be updating this post later. A roll on the drums, please………………………………….
UPDATE: Well guess what? I was wrong, and President Studmuffin is taking his country into default. Here’s Bloomberg’s version:
By Stephan Kueffner Dec. 12 (Bloomberg) — Ecuador won’t make a $30.6 million bond interest payment due next week, putting the South American country in default for a second time in a decade, President Rafael Correa said.
“The country is in default,” Correa told reporters in his office in Guayaquil. Correa, calling the debt “illegal” and “illegitimate,” said the government will present a restructuring proposal to bondholders in coming days. “We want creditors to recoup part of their money.”
The country’s bonds plunged to under 25 cents on the dollar yadayada continues here
As a little mitigation, I point out that the advice was to take half profits today at the 31c prices offered, but that doesn’t disguise the fact that this sucks.
As more mitigation, he’s clearly aiming to get a deal done here and he’s not saying “we ain’t gonna pay never never”, but doesn’t disguise the fact that this sucks, either.
As the last little droplet of mitigation the call to buy Ecuador paper was made when it stood at 21c and 22c, so it’s still a win. But hell, this still sucks.
Bonds have dropped from those 31.5c levels yesterday to 25c now, and Elliott Associates are sharpening their knives as we speak. Mark Weisbrot got the call right this week. Good shot, sir.
More on this later. Meanwhile he’s the proof that I was dead wrong on this call. Having opinions is a real burden sometimes.