>Then default on the stock, but maintain payment on trade credits, or even
>on new borrowing. It's perfectly possible to make new borrowings senior to
>old, unless someone is acting to support a creditors' cartel . . . .which
>makes me think that the case for getting rid of the IMF may be stronger
>than I thunk.
Wow! Daniel, that's a mighty argument. Makes me wonder whether Mancur Olson's theory of collective action could be used to demonstrate why a creditor's, though not debtor's, cartel could be organized. I can think of no greater use to which the late Olson's work could be put! Yours, Rakesh