Sovereignty, what’s that?

The news from Argentina should be a wakeup call for investors (and voters), who seem to have forgotten about the fact that countries can pretty much do whatever they feel like within their borders. The mantra of the power of “the markets” has been so ingrained, that countries like Spain are willing to sacrifice a whole generation of young people in a vain attempt to keep the market happy.

But you know what? As much as everyone says that investors will flee Argentina and never do business there again, in a couple month they will be back, greedy as ever, hoping to make a deal, just like they were willing to lend money to Argentina pretty much right after they defaulted on their previous debt.