Friday, July 30, 2004

Gee, here's a news flash: "IMF . . . Policies Crippled Argentina".

OK, the real news is that the IMF admits as much as everybody else already knew.
By overlooking Argentina's growing indebtedness in the 1990s and continuing to lend the country money when its debt burden had become unsustainable, the fund significantly contributed to one of the most devastating financial crises in history, the report concluded. . . .

Although it remains to be seen whether IMF policies will change as a result, fund officials have long said that the Argentine debacle taught them harsh lessons.
"Harsh lessons"? What, were IMF economists living in cardboard boxes and eating out of dumpsters in 2002? Or did they lose their entire life savings? I wasn't aware the global econom meted out such harsh life lessons to IMF staff.

Certainly the IMF is not the only actor to blame. The Argentine middle class is also culpable, living high on the currency board hog they loved so much, particularly after the Brazilian devaluation of early 1999. But global financial capital made it all possible, and the IMF led the bandwagon every step of the way.

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