Investors Looking To Leave Russia?

Investors Looking To Leave Russia?

news.yahoo.com

On Friday, Russia's central bank announced that its foreign currency reserves -- a key part of its economic stability and an indicator of foreign investor support -- had plunged $16.4 billion. Last week's decline was the largest since Russia's 1998 currency crisis, which led to a collapse of the ruble and rampant triple-digit inflation.

(visit the link for the full news article)

The Bear grabbed the hunter's rifle and shot itself in the foot.

news.yahoo.com
(visit the link for the full news article)

No the Bear didn't shoot itself in the foot.
The morons who run the Bear did.
What the Bear needs to do is take back its own country from insane psycho's much similar to the rest of the world.
Unfortunately it isn't much different.

Hum, I guess Russia still find money to buy American debt as they are our number nine in the list at America yearly auction block.

Investors aren't concerned about the wars Russia is waging or how popular it is around the world.

Investors are concerned with how stable the Russian government is, how favorable the economy and the local markets are, and how many opportunities the host country offers for them to make what counts most - money.


So no, investors will not flee Russia because of some far off isolated conflict. Russia will take a minor-to-moderate economic/financial hit from this affair, but it will bounce back in months thanks to oil, gas and other resources.


Ah - and the bear cliches are getting sort of, well cliche. Maybe the bear is simply coming out of hibernation and living up to the expectation of doing what it is bears do - eat, sleep, growl, eat, sleep, make more bears, growl, eat, sleep.

I wish the bear would go back into hibernation already. It seems to think it's sniffing around its own backyard eventhough the port city of Poti has 'Future Resident of NATO parking' signs at every dock.

Ah well, it won't be long before this cub crawls back in its cave again anyways since all the other animals in the forest are getting together to ground it for a while.

reply to post by maloy


The source article provides its theory:

Now, it seems, investors are fed up with the rampant militaristic nationalism, red tape, corruption and anti-investor sentiment in Vladimir Putin's Russia.

Though, I'd put corruption and general lawlessness at the top of the list.

[edit on 26-8-2008 by loam]

Maybe the NATO hawks should stop stalking the bear. The vultures should go back to scouring for dead meat in Yugoslavia and Afghanistan.

As for the other animals in the forest - so far all they are doing is barking, howling, and wailing. You can't expect the bear to sleep with all that noise. I would suggest playing dead instead of attracting the bear with all the noise.



[edit on 26-8-2008 by maloy]

reply to post by loam


Lawlessness? What are you talking about? Russia isn't Iraq or Afghanistan.

Wheres Mah rifle, so I can end this Bear nonsense.....


Russia is a nation, not a bear, they might be represented as a bear, but thats about where the similarities of a bear and russia end. lets hose this bear metaphors.

Investors want what they are able to get in america, and may go find other avenues soon. they are no different then a Ambulance chaser.

reply to post by Tranceopticalinclined


Bingo!!!!!!!!!!Thanks for nailing to the spot, beside the negative propaganda geared toward Russia for their incursion and confrontation in GA after GA playing the bully I can not expect anything else from US main stream media.

Now the stocks have dropped Putin and his rich nationalist buddies can buy up these stocks at a low price and consolidate their power. I don't think they care if the average Russian suffers economically somehow...

This article is bollocks -

to begin...

1) America is supported by Foreign Capital - sovereign Funds from Bahrain to Beijing - this is a known fact. A 16 billion pound reduction in its reserves is nothing . what an absolute joke.

2) The comment regarding the dissident is also a lie - the prisoner was hoping to get consideration for good behaviour three years early. Total fabrication of the facts.

3) Further 2% is per capita figure of GDP - not a year on year figure - The US has gone down massively since the same period, an actual decline when non secured debts are considered - America is worse off than Russia.

4) Inflation is high in Russia for no other reason than it is driving the world commodity boom (not the US - which has lost almost its entire manufacturing sector to China) - Moscow for example now has more millionaires than any other city - HENCE the inflation. It is the most expensive city on earth - because they are all so friggen rich !

5) Oil prices have fallen from a high of 150 us dollars per barrel and have stabilised round 120 - meaning they are almost three times what they were two years ago - foreign investment is falling because it has peaked and there is a global recession - driven by commodities which is Russia's primary economic base - how stupid can you get.

6) The US is spending significantly more because it is involved in financially crippling wars which it is financing through debt - the iraq war is estimated at minimum by the Nobel Prize winner Stiglitz at 3 trillion dollars - yes - a quarter of your economy.

This article is not simply un-named propaganda - it is drivel and torn apart - the problem with putting up garbage like this is it only serves to highlight the desperation of America - in the face of a resurgent Russia.

The reality is that Europe is almost totally reliant on Russia for its energy needs - any real threat to the Russians by Europe and they will switch off - and in my mind - this coming winter is going to be as expensive as hell !

China and India have already pushed for deals with Russia which will remove Europe from the equation - if this were to happen Europe would simply fall over.

Nice try yankee stooges - but please use articles which dont contain such obvious personal bias as seen in lines like this -

Russia could be in real trouble, and it couldn't happen to a nicer regime.

This article makes the OP and Yahoo look really stupid.

[edit on 26-8-2008 by audas]

Russia sounds like a nice place to live!

Ya unfortunately the US did itself in by selling off its industry and creativity for the bottom line..maximizing that also maximized the hole were in.

Its hard to be free when your bought and sold in the marketplace.

Cheers!!!

reply to post by Tranceopticalinclined

Wheres Mah rifle, so I can end this Bear nonsense.....

here - you can borrow mine, if i read one more bear innuendo i thought i was going to scream.

Russia reaps what it sows. Like any other country.

Right now - its in a dry spell playing with a rotten crop.

Bears don't eat vegetables....Russian do.

i have the feeling that behind Russia or US or UE or even China are the same people pulling the strings . The main shareholders of the banking and industrial cartel.. good luck World!

the normal people of Russia had enough extreme poverty , and the Internet is full with young russian women that want to marry old western people just to get out of that country. Putin would better focus on giving a better life to the 150 mil. citisens instead creating another cold war ..

reply to post by marg6043


Amazing how cocky the article is... russia can't beat us militarily wow... i can see thru all the propaganda there. what exactly does beating us militarily have to do with a financial report?

reply to post by audas


Totally agree !! the U.S is in deep caca and the author has the cojones to actually say russia is in trouble? amazing.. The article is super biased and the author should be ashamed of himself! I woudnt be surprised if the investors that took back that money where U.S institutions to begin with... Russia has tons of evergy reserves and they will be needed only more in the future any investor that would pull back would be doing it for political reasons not for financial reasons.

[edit on 26-8-2008 by thefreepatriot]

I've used the Bear metaphor myself, but it has "grown long in the tooth". I'll do my best to only use the other Bear metaphor. The one that is opposite of a Bull.

I concede that Western investors were complicit in some looting of the Russians a decade ago. Putin put an end to that but swung the pendulum too far in the other direction while also enriching his friends and bankrupting and imprisoning his enemies.

I think it's a given that there is a new risk premium for any outsider investing in Russia. There is no doubt that Europe needs to buy energy from them, but why would anyone invest there when there is no guarantee that the terms of such an investment will not be arbitrarily cancelled/changed at the behest of TPTB there?

It may not be the best example (apples to oranges are still comparing fruit though) but lets do a quick comparison. The dispute with the Russian oil company and BP, and the recent lawsuit by an Abu-Dabi bank against Morgan Stanley, Bank New York/Mellon, and the rating agencies. In which jurisdiction does the non-native entity have a chance of actually recieving a fair trial and after presenting convincing evidence of wrongdoing in the courts recieve court ordered recourse from the native entity?