Countries can default on their obligations or become insolvent, but there’s no sovereign bankruptcy forum for restructuring a country’s debts in an orderly process by which all creditors are bound. That’s the difference between insolvency and bankruptcy.
The rich bank depositors in Cyprus got pretty, pretty wiped out when they bailed-in the banks after the banking system collapsed. Lots of them were Russian oligarchs stashing funds abroad, so my sympathy for them is extremely extremely limited.
Not sure if they were completely wiped out, may be just a fraction of their wealth that did - ex: their insurance policy. The working and poor class have less room to cope for disasters.
All the semantic nonsense aside, the question is whether the U.S. cannot lose money by giving it to Argentina because they cannot go “bankrupt”.
Either the meaning of bankrupt is one which doesn’t apply to countries, in which case it’s a complete red herring to the question of whether an investment in a country can lose money, or we use a looser definition of the term “bankrupt” which the responder generously did that would allow a country to go “bankrupt” and an investment in it could lose money.
Either way, the only useful claim, that the US cannot lose money by investing in Argentina is almost certainly false.
