Debt crisis weights heavy on Argentina

Argentina's economy looks bleak for the second quarter in a row. CNN's Isa Soares reports.

The flags are still flying high,the signs of pride that they reaped from football achievement.But behind the patriotic display,there is an undertone,uncertainty and fear in Buenos Aires.Here on the street,people are worried about fragile state of their economy,and implication of speaking what about it.After several intervew cancelation with other Argentines,we met moter L.P,who agreed to speak to me.And she dosen't hold back when I asked how difficult the life has become for her.She tells me,every thing is much more expensive, our purchasing power has decreased significantly,as well as our standard of living has changed.My life style has changed.I changed my way I dress. I have comfort such as help my home.And I no longger have this.My childeren have to go to the school,and we have to lower the level of education and move schools.And then we have to change the social program we had as a family,such as eating out.We'll no longger go to restaurants.Hollidays are no longger possible.This has all changed she says.Some one said he knows the hardest change may be yet to come.The country's GDP was down at the first quarter this year,and the decline did further in the 2nd quarter, and recession would knowingly be made starker with the expectation the economy will contract by one and half percent this year.Economist E,S, his economy has been precarious the last several years.Basically, the economy has the highest deficit,high inflation,and instead of recuing those problems,the government decided to tighten the exchange rate controls.The only thing is, the only result of that was the declining who serve as world third,the government lost about 15billion dollars of itself,since october, 2011 to something to today.And the economy lost the momentum while we were growing at that time we are in the recession.And inflation at that time was about 25%,now was about 40%,so the thing went wrong for the government.This already out of sustainable situation may become less sustainable still if the Argentina can't find way to pay for its exchange bunghole at the end of month.The country would be in default.And then fears Argentines' likeliness daily faces every day may be hard to escape from.She tells me, I try not to be fearful,I fight not to be fearful,but there are things that went through on daily basis,some makes your fearful.First, economy uncertainty has been made turn out,then pressure we faces over individual freedom and security.The fears are there,they are permanent.I'm trying not to fear them,but they are there,she says.Getting people to talk openly and on camera,but economic reality is there,facing it has been a challenge.Many are fearful the government will look into their finance, into how they spend their money.Well, when Argentina you wish not to be on camera,basically you told me,you can smell the recession,it's every where.Well, with soaring inflation,depleted reserves and social discontent, you are gonging to have smelt it, you can see it.