Venezuela Is About to Go Bust
Venezuela’s economy is facing a tsunami of bad news. The country is suffering from the world’s deepest recession, highest inflation rate, and highest credit risk — all problems aggravated by plunging oil prices. Despite all its troubles, though, until now Venezuela has kept making payments on its $100-billion-plus foreign debt.
That is about to end. In recent days a consensus has emerged among market analysts: Venezuela will have to default. The only question is when.
A Venezuela meltdown could rock financial markets, and people around the world will lose a lot of money. But we should all save our collective sympathy — both the government in Caracas and the investors who enabled it had it coming.
In the last few years, the Venezuelan government has been steadfast about staying in good graces with its lenders. It has paid arrears on its debt religiously, and has constantly asserted that it will continue paying.
http://news.yahoo.com/venezuela-bust-213300654.html
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