This case highlights the complex and often fraught relationship between sovereign nations and private investors, and the potential for lengthy and costly legal battles to resolve disputes.
I think Argentina have just shot themselves in the foot. Its not like they're competently managing the oil well enough to offset the losses in confidence and foreign investment from actions like this.
I'm not sure the fair value adjustments are even necessary. Given the difficulty in valuing this asset, I believe they meet the conditions to record the asset at cost. That would be a huge cost savings. Accountants who specialize in valuations charge an arm and a leg...
since it is a public company, i think it has to revalue the asset periodically for its financial statements. otherwise, the income would be too volatile.
Thank you! This is a niche topic so it's to be expected that the viewership isn't as high as some of our other videos. But we really enjoyed making this one and will continue to make more like it.
Cristina Kirchner was by far the worst thing that happened to Argentina, while many jumped like brainless monkeys celebrating the expropriation of YPF, now we are going to end up paying much more in compensation than what 100% of the company was worth at the time. And keep in mind that today we only have 51% of the company. GENIUS!
Indeed. This video has totally fake data regarding the Kirchner's and the reason for the expropriation........add to that, Chikillof and Cretina expropiated the company a couple of months prior to the historical drop in oil barrel's price (which also basically demolished Venezuela's economy).........this means if those imbecilic apes would have waited 5 months to expropriate, YPF would have costed 100 millions or less, basically, they could have just bought it legally, and Repsol would have gladly sell it for pennies.
How would paying this benefit Argentina? What do they stand to lose if they don't? Their unblemished credit rating? Given how much of the fund's valuation is tied up with this case, I'd be nervous.
@@CHMichael Considering what is involved they (IMF) will never let that debt go away if we can call it like that.. Worlds resources don't belong to countries but to international companies and all govts act in their favor of course!
@@tomkandy that's why Brasil and Argentina had nuclear programmes in the 70s. After all yanks act tough on small countries (like Irak or Libya) but muddy their trousers as soon as a nation gets some nukes lmao
The Argentine state not only has assets in Argentina, it also has assets in the world. At the time they wanted to seize the Libertad Frigate, although it was for another case, or rather another K shit. Those assets are going to be seized. Not paying is worse! What you have to do is stop voting for populists like the Kirchners who expropriate and also do it badly. That is the real way to not pay in the future.
Doesn’t matter what the courts decide. Here in Mexico Argentines are known as slimy people to never do business with. THEY RARELY PAY YOU BACK. I mean their companies and business doers. I’m not saying individual entities.
honestly we should also expropriate the oil here in the US we can finally lower the gas prices, and not have to depend on the good will of wall street.
@@floxy20 he's arguing the old supply / demand redneck economic theory. If gas prices are lower for me, then I can afford a bigger loan for a bigger truck and a bigger loan for a bigger boat, thereby creating more jobs! All operating costs are paid visa-vie credit card until maxed out, truck and boat repossessed, locked out of the trailer, move back next door to mom's trailer. Then I file personal bankruptcy again to stick it to the liberals and start all over again, this time with guns!!!!
Argentina has IMF issues as well...speaking of sovereigns. Why anyone should repay anything at the moment is quite the mystery in point of fact. Not really a fan of oil at this price at the moment remains an understatement tho. Long $kmi Kinder Morgan Energy strong buy.
I binge on these videos. Great insight into financial matters, you guys. Now I see why it's tough (nearly impossible) for my South Africa 🇿🇦 government to expropriate gold mines and other mineral mines owned by American companies and British companies. If we were to expropriate like Zimbabwe did, we would be financially and economically sanctioned to death. It will be economic suicide. The USA 🇺🇸 has done everything, legal and by lethal force, to protect its interests and those of its citizens in other countries' resources. This is why Americans, as much as they know the depths of the USA evil doings, would never do anything to oppose the USA 🇺🇸 because they, too, at an individual level benefit
There are some very negative connotations associated with vultures despite the fact that they do a vital service. Vultures are a critical part of keeping the ecosystem clean. Similarly vulture funds fill a crucial and necessary role that people should appreciate. They clean up shit debt no one else wants to deal with, and then they punish the shitty misbehaving countries that just want a handout. Argentina should have to pay through the nose, they should not get a write off and they should experience a lot of pain for their mismanagement. We can't just keep writing off debt for a country every 20 years because they always overspend. This debt forgiveness welfare system is getting absurd, I appreciate the vulture funds for their services
So make the people of Argentina suffer so that some greedy rich people can get richer. This isn't a game. There is a country full of people who are suffering. Americas greed knows no bounds
No wonder Argentine (like many other countries in South America, Africa, Middle East and Asia) is drifting towards the BRICS in order to escape a weaponized financial system.
Argentina is a DEFAULT MACHINE who requests loans and never pais, and never pays because has a cronic desease called SOCIALISM, which had a deficitary budget for the last 70 years, each year worse than the one before.
Just shows what an incompetent and useless people the Argentines are SMH... Too much pride to pay back, but too little skills and ability to make money 😂😂😂
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you dig up some really interesting and complex case studies that I've never heard of! great stuff bro
17:00 Argentina is my favourite company of all time.
Yes they're a very large company
yeah, that was a headscratcher. I wasn't really listening until then....I suppose he was talking about GDP and taxes, not sales and net income?
This is wild. I didn’t even know businesses like this existed. Buying shares in litigation funds? 😂😂😂
Try Sabah Sultan of Sulu Phillipines vs Malaysia.
my sentiments exactly
I didn’t either but I assume they work similar to all those work compensations lawyers.
Muddy Waters Research. These short selling vigilantes really do know how to pick good company names....
This case highlights the complex and often fraught relationship between sovereign nations and private investors, and the potential for lengthy and costly legal battles to resolve disputes.
I think Argentina have just shot themselves in the foot. Its not like they're competently managing the oil well enough to offset the losses in confidence and foreign investment from actions like this.
Imagine destroying your own currency, just to spite Burford Capital.
I imagine it looks something like this 5:48
Just shows what an incompetent and useless people the Argentines are SMH...
@@joez.2794 Nah, that chart moved upwards
@@ProfAzimov 5:49
@joez.2794 What I mean is that the chart shown has periods where it moves up in price, when the Argentine peso only goes down compared to the USD
17:02 “Argentina are still a large company”
I'm not sure the fair value adjustments are even necessary. Given the difficulty in valuing this asset, I believe they meet the conditions to record the asset at cost. That would be a huge cost savings. Accountants who specialize in valuations charge an arm and a leg...
But they boost management's paper wealth ten fold. People feel richer if stock prices go up.
They will never get the money anyway, US will not intervene diplomatically for a small financial firm
since it is a public company, i think it has to revalue the asset periodically for its financial statements. otherwise, the income would be too volatile.
@@gregheffley2 since there is absolutely zero chance that Argentina will pay, the j come should be zero anyway
Well done video. I hope the lower view count doesn't dissuade you for making more. I was impressed.
Thank you! This is a niche topic so it's to be expected that the viewership isn't as high as some of our other videos. But we really enjoyed making this one and will continue to make more like it.
@@wallstreetmillennial I very much enjoyed it, as most of your videos. Also please never start playing the *RUclips shorts game! 🙂
Superb research! Thx for putting this together.
Cristina Kirchner was by far the worst thing that happened to Argentina, while many jumped like brainless monkeys celebrating the expropriation of YPF, now we are going to end up paying much more in compensation than what 100% of the company was worth at the time. And keep in mind that today we only have 51% of the company. GENIUS!
Indeed. This video has totally fake data regarding the Kirchner's and the reason for the expropriation........add to that, Chikillof and Cretina expropiated the company a couple of months prior to the historical drop in oil barrel's price (which also basically demolished Venezuela's economy).........this means if those imbecilic apes would have waited 5 months to expropriate, YPF would have costed 100 millions or less, basically, they could have just bought it legally, and Repsol would have gladly sell it for pennies.
How would paying this benefit Argentina? What do they stand to lose if they don't? Their unblemished credit rating?
Given how much of the fund's valuation is tied up with this case, I'd be nervous.
bonuses are probably tied to operating "profit" not cash flow or stock price. Given the wrong carrot the rabbit will rob you blind.
The Repsol agreement to pay 88 dollars on a 12 dollar stock is crazy.
17:00 Yes, Argentina is a large corporation 😂
There are four kinds of countries in the world: developed countries, undeveloped countries, Japan and Argentina.
Very interesting case I would never have heard of without you, cheers mate
Me when I scam a international corporation 5:48
The were required to Privatize YPF by the IMF.
And it thrived. Until they renationalized it and then it became like everything else the Argentine government controls.
The IMF should stop giving these flunks anything
Another gift of the Fernandez government
That sounds similar to what got Venezuela and iran kicked out of the international community.
That's the political use of some many invented debts...
@ezequielstersciuckz9330 they just elected a new president.
Did the lawsuit go away or is it part of the problem?
@@CHMichael Considering what is involved they (IMF) will never let that debt go away if we can call it like that.. Worlds resources don't belong to countries but to international companies and all govts act in their favor of course!
Wild that Argentina would just steal half of an oil company and expect it to be intact the next day.
16:59
Yeah, that’s a pretty large “company” lol
How is a New York court going to get the Argentine government to pay
Back in the good old days, they'd have sent in the gunboats
@@tomkandy that's why Brasil and Argentina had nuclear programmes in the 70s. After all yanks act tough on small countries (like Irak or Libya) but muddy their trousers as soon as a nation gets some nukes lmao
The Argentine state not only has assets in Argentina, it also has assets in the world. At the time they wanted to seize the Libertad Frigate, although it was for another case, or rather another K shit. Those assets are going to be seized. Not paying is worse! What you have to do is stop voting for populists like the Kirchners who expropriate and also do it badly. That is the real way to not pay in the future.
Allow the seizure of assets if the government doesn't pay, probably.
@@somethinglikethat2176 hard to foresee anything like that happening as it quickly trends on sovereign immunity stuff
Thanks vor this Great case study
Who wants to bet the new management team the President hired are her personal friends and family?
Investing in Argentina is never a good idea. Argentina is allergic to paying
They have a Roaring 20s and Great Depression cycle every decade or two.
"allergic to paying"
Just get another payday loan
I lived there for 9 months and it was a nightmare. Nothing works. The whole country is stuck in the past.
@@samsonsoturian6013 I don’t know about the first part 😂
@@Nswix The past? Argentina is pretty average, globally speaking.
Eton is pronounced 'eaton'
5:48 🤣🤣 Dancing fool. Literally.
Never take on an entity that owns an army
Doesn’t matter what the courts decide. Here in Mexico Argentines are known as slimy people to never do business with. THEY RARELY PAY YOU BACK. I mean their companies and business doers. I’m not saying individual entities.
Just shows what an incompetent and useless people the Argentines are SMH...
Another home run video! Thanks
I mean who in their right mind would invest in anything in Argentina or Venezuela!?!?!
When a Kirchner is criticising you, you’re doing something right.
"argentina is still a large company" good to know but its a company thats badly managed ;)
Hahaha! Socialism works for the Fernandez family but no one else! 😂❤
Bro, they are Argentine, it is the Argentine economy.
I don't believe in short selling.
Why not
Oka, oka, ATADORA BURFORD SMART SERVO.
Hahahaha I'm not the sensitive type.. Plus I'm not argentinian.. But damn that thumb nail is.... Hahahah
Wait they just won the football championship! I am confused.
honestly we should also expropriate the oil here in the US
we can finally lower the gas prices, and not have to depend on the good will of wall street.
Congratulations! The dumbest comment of the day. Keep up the good work and keep on never consulting an economic or history text.
@@floxy20 he's arguing the old supply / demand redneck economic theory. If gas prices are lower for me, then I can afford a bigger loan for a bigger truck and a bigger loan for a bigger boat, thereby creating more jobs! All operating costs are paid visa-vie credit card until maxed out, truck and boat repossessed, locked out of the trailer, move back next door to mom's trailer. Then I file personal bankruptcy again to stick it to the liberals and start all over again, this time with guns!!!!
This would've been a good idea 50 years ago, but oil hasn't much future now.
Argentina is a large "company"
I love Argentina but the Argentinian government is not going to pay. Especially with the new president
Argentina has IMF issues as well...speaking of sovereigns. Why anyone should repay anything at the moment is quite the mystery in point of fact. Not really a fan of oil at this price at the moment remains an understatement tho.
Long $kmi Kinder Morgan Energy strong buy.
Argentina doesn't think expropriating international companies hurts FDI? No wonder the peso has gone to the dogs.
It was a staged expropiation for private business my friend.. if any debt there will be on the people expense.. thats why corruption/business works
LOL...this Burford guys will get pessos
I binge on these videos. Great insight into financial matters, you guys. Now I see why it's tough (nearly impossible) for my South Africa 🇿🇦 government to expropriate gold mines and other mineral mines owned by American companies and British companies. If we were to expropriate like Zimbabwe did, we would be financially and economically sanctioned to death. It will be economic suicide. The USA 🇺🇸 has done everything, legal and by lethal force, to protect its interests and those of its citizens in other countries' resources. This is why Americans, as much as they know the depths of the USA evil doings, would never do anything to oppose the USA 🇺🇸 because they, too, at an individual level benefit
There are some very negative connotations associated with vultures despite the fact that they do a vital service. Vultures are a critical part of keeping the ecosystem clean. Similarly vulture funds fill a crucial and necessary role that people should appreciate.
They clean up shit debt no one else wants to deal with, and then they punish the shitty misbehaving countries that just want a handout. Argentina should have to pay through the nose, they should not get a write off and they should experience a lot of pain for their mismanagement. We can't just keep writing off debt for a country every 20 years because they always overspend. This debt forgiveness welfare system is getting absurd, I appreciate the vulture funds for their services
Bet you were one of those shills crying "short sellers are good ppl" when WSB was beating the sht out of the hedgies lmao
So make the people of Argentina suffer so that some greedy rich people can get richer. This isn't a game. There is a country full of people who are suffering. Americas greed knows no bounds
Good luck collecting 🤡
Watch USA they have the biggest debt.. never really pay and they do great so far lol
It's always handy to have an US Supreme Court Judge in your back pocket...
It’s not Ee-ton Park. It is said Eat-on park. Eton is a VERY famous school that you should know how to pronounce.
No wonder Argentine (like many other countries in South America, Africa, Middle East and Asia) is drifting towards the BRICS in order to escape a weaponized financial system.
Argentina is a DEFAULT MACHINE who requests loans and never pais, and never pays because has a cronic desease called SOCIALISM, which had a deficitary budget for the last 70 years, each year worse than the one before.
Just shows what an incompetent and useless people the Argentines are SMH... Too much pride to pay back, but too little skills and ability to make money 😂😂😂
Yeah don't pay the debt you owe to China and see what happens
@WSM please consider putting your content on twitter