Investors have followed the latest twist in the saga of Argentina's sovereign debt pretty calmly. Soon, they may have second thoughts.
In effect, the U.S. Supreme Court has just rewritten the rules of sovereign borrowing -- and not in a good way. It did this indirectly, by refusing to intervene in the legal fight between Argentina and an unusually persistent creditor. The immediate implications may be confined to Argentina, whose outlaw tendencies have made it a special case. The longer-term implications go wider.