Delete comment from: Captain Capitalism
Of ocurse, Captain, the risk was somewhat mitigated by the fact that the outside investment could generally be recouped by the argument:
"Dear defaulting South American nation: As you have failed to meet your obligations, we have no choice but to run your ports at gunpoint until our investors are repaid. We regret any inconvenience or embarrassment this may cause your citizenry, but if you don't like it, please consult our warships in the harbor. Yours sincerely,
The European Powers"
I'm not saying credit and investment was safer, mind you, but it did happen on occasion. And it's so much fun to read about when it did...
Mar 16, 2006, 5:32:00 AM
Posted to Bad Credit Analysis