Post #56309 by Steve203 on the US Policy board

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On Monday, Popular Information revealed that the taxpayer-funded bailout had massive economic benefits for hedge fund billionaire Rob Citrone, a personal friend and former colleague of Bessent. Citrone’s fund, Discovery Capital, had bet heavily on Argentina, purchasing Argentine debt and equity in numerous companies closely tied to the country’s overall economy.

Citrone’s investments reflected his belief that Milei’s right-wing economic program, which emphasizes deregulation and sharply reduced government spending, would revitalize the Argentine economy.

That theory began to unravel as growth slowed, unemployment spiked, and Milei’s popularity tanked. This spring, Citrone reportedly urged Bessent to help Milei secure a separate $20 billion package from the International Monetary Fund (IMF). The IMF funds began to arrive in April, but proved insufficient to turn the Argentine economy around.

Concerns turned into panic after Milei’s party was routed in the Buenos Aires provincial election in early September, fueling fears that Milei would soon lose control of the economic agenda. Investors began dumping the peso and liquidating other Argentine assets, which spelled major trouble for Citrone’s hedge fund.

Major Argentine media outlets are now reporting that Citrone asked Bessent for a United States rescue package. Ariel Maciel, Political Economy Editor at Perfil, a large Argentine media outlet, wrote that after the Buenos Aires elections, Citrone “returned to his friend and former colleague… to request a second bailout, this time from the very coffers Bessent manages: the US Treasury.”

CE Noticias Financieras, a major wire service in Latin America, similarly reported that after Argentine officials ran into resistance with lower-level Trump officials, “Citrone managed to connect with Bessent to get him to intervene directly.”

https://popular.info/p/update-hedge-fund-billionai...

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Of course, we here in Michigan, are used to that sort of corruption. Governors routinely appoint "emergency managers" to usurp the power of local elected officials, and do whatever it takes to prevent a city, or school system, going bankrupt, so the money interests who own the bonds, get paid in full.

One of the biggest laffs I ever got watching bubblevision was when word got out that former Sec Treasury, Robert Rubin had called the credit rating companies to pressure them to not cut Enron's ratings. Mark Haines said "gee, I didn't realize credit ratings were negotiable"

Steve

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