A bail-out from America can stop a financial crisis in its tracks. In 1995 President Bill Clinton lent Mexico $20bn as its currency collapsed. Two days later, sniffing a bargain, investors were willing to buy the country’s bonds. On September 22nd Scott Bessent must have hoped for a similar reaction. The Argentine peso was sliding in the build-up to make-or-break midterms on October 26th. So America’s treasury secretary announced that he would support the currency unconditionally. “All options”, said Mr Bessent, “are on the table”.
in Finance
