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Spain's economic problems just got worse is Spanish oil company YPF was taken over this week by the leftist government in Argentina.
Spain called the seizure of white -- a hostile illegal act and is threatening to retaliate.
But the move also sent shudders through the emerging market sectors investors are worried now that other governments might feel empowered to take over private property at a whim.
Earlier I talked with the mingle -- he's a former finance minister of Argentina and asked him how the -- takeover would affect Argentina.
Becoming isolated from the rest of over the water what you have a good relations we sustain was what was -- voted -- and then.
You have to think who would be crazy enough to invest some of their operations in Argentina knowing that tomorrow.
The government could take it over yes and the but over them that -- government -- truly wanted to sort of he's not convince many in the energy sector because as they -- that but I seriously they have they he had single.
In the month before they gave me energy increased significantly about so buddy -- for good -- -- -- gas.
Boy and -- link BCP game when down.
And then they -- now a big kid -- a deficit in energy in hasn't -- -- -- They would they would export their affinity and now we -- to be important that and I think what -- -- -- -- It -- bags to solve this problem but by.
Right the FAA.
She we have.
It ease the credit been engaged to relax -- Bid that would be a further reduction in production because that would be no on new money coming boom to being based that the Indian isn't -- up.
Either way what you said about price controls very interest in because whenever you have price huge price controls lead to shortages.
Companies will not produce something if they can't make a profit from and if you restrict the price -- which they -- -- -- They eventually will pull out and that's exactly what happened with the energy and -- yes.
And I'll be forty cup and we -- beef production of -- if they froze that but I shall be so what seven ideas have been an input but -- -- -- -- cheaply.
But then the next Coke -- what's best computing fuels so no -- snowing up production of beef.
Not -- provoked -- exports of beef but if to put the -- at these -- in the with the consumption of beef in their.
In that milk and beef but I just -- stern school of proceeds will be -- -- -- -- that now what are these government.
These phone though Fred these kind of economy -- the -- -- gets what.
Happened in Argentina has sent a chill through out.
The emerging markets investment community they think if Argentina could do it it could happen -- where are they right no they.
-- they get a wrong because.
Gay and that was that but what is happening in Argentina has happened only in Venezuela a nephew that are really let the -- companies I think.
Gave most of the imagine where -- has letting the length songs so.
You'll see that is even but I see that used to have the -- governments Argentina is the united conducting Greece and evidently a -- -- -- incrementally.
They have money and anybody see this thing makes -- of the same meant to deal of course -- has been managing its economy really went.
Colombia is doing there is not gonna work -- -- so soul.
I think that day.
Didn't know what do we even need -- that in Vietnam or Venezuela will be limited it'll be limited -- -- -- -- -- -- for my company about -- fortunate.
They have for the rest of the war that there are -- -- that -- -- economy win if photo.
They -- they -- Venezuelan and -- -- the end and kind of economy policy making one final question -- how long do you think it'll take Argentina recover from this.
You know certain.
If they we need that they I think either we if we nobody got better.
Unbeaten -- changing government -- -- have fifteen no way.
Yeah I think bear in the agency now we continue with these kind of quantities and the Indian no clear there Monday but I am sure that.
Do you another mean Argentina win there how did not I'll know and these -- -- bodies he said.
I think it'd be nice big company that cuts to local resources so he may think governor a -- -- -- My -- -- to make up vol former finance minister of --