Trading in Russia suspended to halt slide.

dorlomin · Light Sweet Crude Joined: Aug 05, 2007 Posts: 1151

Link I guess with the fall in comodities and the general panic around the world Russia is taking an absolute pounding. Ugly days. Perhaps the best thing about posting here for over a year, I got my panicking over and done with a year ago.
But all the same many many very poor Russians will become poorer.

EnergyUnlimited · Fusion Joined: May 15, 2006 Posts: 3397

Poor Russians may hold some vodka but not shares. They will remain entirely unconcerned about these events.

If oil drops further $20 (quite likely) then alternative energy bubble will surely collapse and that will be interesting to watch.

oxj

Yes, the struggle of the poor is uninteresting, for it is common.

MrBill · Expert Joined: Sep 15, 2005 Posts: 5650 Location: Eurasia

Your average Russian does not own shares. Those that do are those who can afford to take losses. This downward momentum is actually being caused by those Russians that pledged local shares and ADRs against loans, so that they could buy more shares and/or property. As they cannot meet margin calls their banks are selling that collateral on their behalf to pay-off the loans.

This is truly ugly, but it is not hurting or affecting the poor. I believe that some of TPTB are actually profiting from this rout in share prices. If they sold in May they can now afford to buy back a roughly half. That alone should pay for the Georgian conflict, although they might have over-estimated themselves their ability to stop this fall in stock prices. Sometimes these things take on a life of their own what with the public fight over BP-TNK, comments about Mechel, the credit crisis, the Georgian conflict, the bursting of the commodity bubble and now major players and liquidity providers imploding.
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The organized state is a wonderful invention whereby everyone can live at someone else's expense.

AlexdeLarge

As oil revenues diminish, they will get royally screwed again. But Putin will use this "crisis" to consoldate his power even more.

Got to love those KGB guys!
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Viddy well, little brother. Viddy well.

Specop_007 · Expert Joined: Aug 12, 2004 Posts: 6288

So much for Ivan's military expansion dreams. Laughing

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Abyss, the Abyss gazes also into you."

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كا&#

IslandCrow

Trading Halted in Russian shares

Polemic

Remember the story of how the US in concert with Saudi supposedly tanked oil prices in the late 80's so that the Soviets would have to overproduce their fields to maintain revenue and cause an earlier peak in their production...

Just a guess, but could it be that Western powers saw how commodity-heavy Russia is in their investments; and decided that they wanted to try and burn the Russians? Maybe that partly explains what seems to be manipulation by large players in commodity prices.

I don't think it will work though in the long run. We seem doomed to collapse the way they did, or worse, and they seem destined to rise above.

frankthetank

Wait... This is the same country that has RESOURCES galore, huge amounts of empty land (although some may be radioactive), small population and a couple 100 billion in the bank??? I wouldn't start crying just yet...
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Clothing should be optional.

The_Virginian · Light Sweet Crude Joined: Jun 19, 2004 Posts: 1528

"Financial turmoil accelerates in Russia. Trading on RTS and MICEX stock exchanges suspended for a second day
By Polya Lesova, MarketWatch Last update: 9:51 a.m. EDT 17 Sep 2008:
NEW YORK (MarketWatch) -- Russian financial turmoil accelerated Wednesday as trading on the country's major exchanges was halted for a second day and the finance ministry announced plans to loan the country's three largest banks up to $44 billion. " Now you can "cry" for Russia
Frank,
Their capitol reserves shrunk as well: "handler noted that since the war with Georgia, Russian foreign exchange reserves have fallen by $24 billion. Still, Russia has the third largest reserves in the world; they stood at $573.6 billion as of Sept.5. "
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threadbear · Expert Joined: Jan 22, 2005 Posts: 7790

heroineworshipper

Russian banks probably had huge investments in mortgages. They've printed over 1.5 trillion Rubles since Tuesday to pay off mortgages & sustain the dollar exchange rate.
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People first, then things, then dollars.
There will be enslavement, cannibalism, & zombie invasions.

ReverseEngineer · Light Sweet Crude Joined: Jul 16, 2008 Posts: 1741

Race to the Bottom.

AlexdeLarge

threadbear · Expert Joined: Jan 22, 2005 Posts: 7790