Why Argentina Needs Bailout After Bailout After Bailout
Understanding the bond market basket case.
The financial district of Buenos Aires.
Photographer: Anita Pouchard Serra/BloombergListen to Odd Lots on Apple Podcasts
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Argentina is getting bailed out again, with $40 billion of help from the Trump administration. Of course, this is a recurring phenomenon for Argentina, and this time it's happening under the free market-oriented Javier Milei, who has slashed spending to bring down inflation. So why is it in trouble again? And why is this such a recurring feature of the Argentine economy? In this episode, we speak with Greg Makoff, the author of Default: The Landmark Court Battle over Argentina's $100 Billion Debt Restructuring. In this conversation, Greg explains the domestic political context for why Argentina hasn't been able to establish a sustainable economic footing. We discuss the legacy of Peronism, Milei's efforts to sharply change course, and the challenge of seeing any economic reform project through to completion, given the pain required get into fiscal balance.