CFK to start limping soon?

[nicoenarg]

There seems to be one key point that most seem to be missing. The government says that it must nationalize YPF becuase it isn´t investing enough in Argentina (almost $3.5 billion this year). However, the Argentine and provincial governments don´t have the cash to replace Repsol´s much deeper pockets.

RR

Agree. This point needs to be mentioned. However, the reason they need investors is because they don't have any money. They government is broke and that is why they have nationalized this perceived "cash cow". I am afraid CFK is in for a very rude awakening.

 

[YanquiGallego]

The way this government operates reminds me of how some ¨beat the bank¨ people manage their checking accounts. They spend blindly without managing and then cross their fingers hoping that nothing bounces or gets overdrawn. When something does overdraw, they call the bank and insist its not their fault!
Aerolineas Argentinas is the perfect example. Each day this airline loses over $1 Million USD, and hearing Cristina Fernandez talk about it, or even reading ¨Dr. Mariano¨ the young CEO from LA CAMPORA that is currently running the company (without having had any prior work experience) you would think everything were going peachy keen.

 

[willwright]

The way this government operates reminds me of how some ¨beat the bank¨ people manage their checking accounts. They spend blindly without managing and then cross their fingers hoping that nothing bounces or gets overdrawn. When something does overdraw, they call the bank and insist its not their fault!
Aerolineas Argentinas is the perfect example. Each day this airline loses over $1 Million USD, and hearing Cristina Fernandez talk about it, or even reading ¨Dr. Mariano¨ the young CEO from LA CAMPORA that is currently running the company (without having had any prior work experience) you would think everything were going peachy keen.

The way they are managing the airline is probably a good preview of how the Oil company will operate, although the numbers will be larger.

 

[toongeorges]

I am afraid CFK is in for a very rude awakening.

That sounds optimistic. I rather think the government will keep denying any wrongdoing and blaming others for anything that goes wrong.

 

[notebook.fix]

I think, I'm not sure...but I'm drawn to the conclusion that the sole reason behind the nationalization of AA was purely for the purpose of expanding the tourism to Santa Cruz. As is well known Kretina & Mafia friends have developed a major tourism industry as a result of their illegal land buying ventures. Nationalization of AA would have produced to positives: 1. It's a populist vote winner..... 2. Assured the growth of the mafia's tourism industry interests that rely on AA at the expense of the Argentine taxpayers.

Watching Gorge Lanata last night made me ponder about this...
http://www.youtube.com/watch?feature=player_embedded&v=BB73Ic_1J8I

 

[trennod]

Nico you´ve hit the nail on the hand, here comes the downside of the YPF nationalisation. With the fact KKs seem to be so hellbent on managing the trade balance it makes the decision on YPF even more baffling given the potential of what could happen in terms of trade restrictions (I am still not convinced the EU will take this path, but the fact the risk is there is enough).

 

[El chabon]

Anything that Argentina sells to the EU can be sold elsewhere.

Spain only real posibility is the 300.000 Argentines in Spain

 

[dennisr]

Shot herself in the foot? One thing for sure, she has tapped into the biggest cash cow in Argentina. Think AFP's cash flow is something like $10 billion (us) a year. Not a bad payday.