Posted on 09/06/2008 5:52:07 AM PDT by MARKUSPRIME
After further falls on Friday, the Russian stock market has plunged more than 30% since the country's invasion of Georgia last month. Investor confidence has been hit hard by the conflict. Some international banks estimating that between up to $20bn (£11bn)in foreign capital has been pulled out of Russia in the last month alone. Since the invasion the value of the rouble has slumped, reportedly leading to the central bank stepping in. So whereas Russia may have got away with a slap on the wrist from Europe for its invasion, Moscow is being punished much more directly by international investors. Analysts in Moscow say Russia is now seen as a risky place to invest and it will be a long time before confidence returns. But Russia is not in any danger of imminent economic crisis. More than $1bn a day flows in from oil and gas exports and Russia is sitting on foreign exchange reserves of more than half a trillion dollars, the third largest in the world. But the financial fall out from Russia's Georgian adventure may now be giving the Kremlin reason to pause for thought.
(Excerpt) Read more at news.bbc.co.uk ...
Ouch, that's gonna leave a mark.
Russia is learning that muscle isn’t the way to hurt a country.
Pardon me while I make a deposit to the Russian blood bank...
Cheney’s in the region mucking things up even farther for Ivan...uh, Putin.
Let Putin reap his whirlwind.
Russia has shown itself as being run by thugs and not suitable for being the business partner of free nations. I guess Russia, China, Iran, Venezuela and Cuba can form some type of “Common Market”.
I love the smell of Russia's economy crashing in the morning with my coffee.
Some time ago I posted something to my FRiend Sal about how the pipelines are in need of maintenance and oil is running out for the Russkies. Apparently they were into energy for the quick and dirty approach and now are in arrears for having done it that way.
Additionally the cost of propping up those welfare states around the world with Russkie passports, and the US and Australia maybe pulling out on the uranium deals.
It's all going to add up sooner or later.
One of the things that struck me from the many articles that have been posted about the flight of foreign capital from Russia is that it isn't just about the money. It's the expertise, the organizational skills, and the understanding that you can't steal all the funding and still expect the plans to work.
Apparently the Russians are incapable of maintaining infrastructure, let alone improving or expanding it. Building, creating are right out. They NEED foreigners running things because they are not up to the job either skills wise or integrity wise. No wonder they have to plunder elsewhere like the thugs they are. (Still referring to the "leadership".)
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