| Headline: Cavallo’s high-stakes confidence game Source: Euromoney Date: May 2001 Author: James Smalhout
“Everything coming out of the country right now is aimed at avoiding the double-D, by which I mean default and devaluation,” says Morris Goldstein of the Institute for International Economics in Washington. “I hope they make it, but so far it doesn’t look as if they will. They’re not putting forward enough to do the job.” Few expect contagion on the scale that knocked out Long-Term Capital Management almost three years ago. “We’re not likely to see any balance-sheet-based fire selling,” predicts Michael Gavin, head of Latin American research for UBS Warburg. “If anything, most leveraged investors are short Argentina and likely to benefit from a collapse.” | |||||||||||||||||||||||||||||||||||||||||