Okay, so now the corporate journalists are angry with Venezuela because the country paid its bills
Okay, so now the corporate journalists are angry with Venezuela because the country paid its bills
By Joe Emersberger
Saturday, Mar 5, 2016
Not often does a Wall Street Journal headline appear to be written by hardline Marxists, but that is what happened on Feb. 24: “In Decaying Venezuela, Debts Get Repaid: The country, struggling with an economy in crisis, appears set to hand over $1.5 billion for its debt payment to foreign bondholders.”
A February 29 headline for CNBC.com was even more indignant: “Venezuela is making 'surreal, suicidal' debt payments.”
Frustrated analysts lash out as if they were the sworn enemies of Capital, showing they'll do anything to disparage Venezuela.
As you might guess, the headlines are not really driven by outrage that bondholders were paid. These are frustrated analysts venting their anger, not irate Marxists. With rare exceptions, corporate journalists are as likely to be hostile toward elite bondholders as Hillary Clinton is toward Goldman Sachs. I am not saying that Marxists always urge default without properly analyzing the consequences - just observing that many reporters are willing to sound like the sworn enemies of Capital when Venezuela defies their predictions and pays bondholders.
Not often does a Wall Street Journal headline appear to be written by hardline Marxists, but that is what happened on Feb. 24: “In Decaying Venezuela, Debts Get Repaid: The country, struggling with an economy in crisis, appears set to hand over $1.5 billion for its debt payment to foreign bondholders.”
A February 29 headline for CNBC.com was even more indignant: “Venezuela is making 'surreal, suicidal' debt payments.”
Frustrated analysts lash out as if they were the sworn enemies of Capital, showing they'll do anything to disparage Venezuela.
As you might guess, the headlines are not really driven by outrage that bondholders were paid. These are frustrated analysts venting their anger, not irate Marxists. With rare exceptions, corporate journalists are as likely to be hostile toward elite bondholders as Hillary Clinton is toward Goldman Sachs. I am not saying that Marxists always urge default without properly analyzing the consequences - just observing that many reporters are willing to sound like the sworn enemies of Capital when Venezuela defies their predictions and pays bondholders.
Rodriguez just published a commentary stating that “the market has underestimated the country's capacity to reduce imports as well as its willingness to use its stock of external and internal assets to avoid defaulting. In fact, in January of last year, markets were assigning a 68 percent probability to default within a year.”
More:
http://axisoflogic.com/artman/publish/Article_73285.shtml
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