It was a shock to see Ecuador, default on it's payment, considering that they have over $6bn in the treasury, to meet its payments easily. Ecuador has over $30bn in overall global debt, which it has obligations to meet by 2012.
There apparently is a leftist president, Rafael Correa, who doesn't like to pay his bills. I don't know what's going on in Ecuador, aside from the fact that this guy just has something else to do with the people's money. Pay your bills, I say.
But, why would Ecuador be feeling the pinch and buckle in these tough times. A closer look may be in order, to see why this president, feels as if he can't and should not meet the obligations due to lack of resources. This is something I am not able to get into, aside from other desk research to see who else has the same type of position in Latin America. However, Argentina may need a second look after what has happened in Ecuador--considering that most LA countries, mirror themselves in regards to their markets and structure of governance.
There is no reason for LA to be the way it is. No reason at all. Production could be up and economies, could be well above board.
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