Posted on 09/17/2008 9:51:49 PM PDT by BurbankKarl
The Russian government was facing one of the biggest tests of its market economy on Wednesday after it was forced to close its two main stock exchanges to halt a market rout that has led to the steepest declines since the August 1998 crisis.
The two main bourses, the MICEX and RTS, said they were suspending trading until further notice from the states main financial regulator.
The move came after shares began to tumble again as investors faced a new wave of forced equity sales on margin calls and a dearth of cash. They had not reopened by close of business.
Government and central bank officials were locked in talks with the chief executives of Russias biggest investment banks throughout most of the day on ways to halt the market collapse, which has wiped nearly $800bn (£440bn) off the countrys stock exchanges in a matter of months and sent stocks spinning down to levels last seen in 2005.
Vladimir Putin, Russias prime minister, and Dmitry Medvedev, its president, met to discuss the crisis of confidence and liquidity which was threatening to spread into the real economy amid rumours that more than one bank was failing to make payments to counterparties.
Chris Weafer, chief strategist at Uralsib investment bank in Moscow, said: If the government gets this wrong, the risk is that people will lose confidence in the banking system, will slash spending and put their cash in the only place they feel safe the mattress.
(Excerpt) Read more at ft.com ...
Maybe Putin should invade the stock exchange with tanks.
FYI.......:o)
Damn, we get the financial flu. Russia’s exchange gets ebola. Wonder how the Chinese are feeling right about now. ;)
It is called the Georgia Dividend.
Paid back with interest for the rapes and the murders of the innocent.
Wait long enough, Georgia may end up owning Russia Lock Stock and barrel.
Some of their heavier investors are getting jittery. We should encourage that, by all means.
Russia’s big investors are pulling out in droves...
Their stock market has seen a loss of $800 billion since June.
I think the Azerbaijanis and the Turks would like to get in on that.
Funny how I’ve been hearing so much about the drop in the wall street markets today, but absolutely no mention of this.
I just hope he can't pull a Reagan...on us.
Ukraine halted trading twice last week.
Stocks Trading Halted in Kiev
12 September 2008
KIEV — Trading on Ukraine’s stock market was suspended for the second time in a week after the benchmark PFTS Index slumped as much as 6 percent Thursday.
http://www.themoscowtimes.com/article/1009/42/370876.htm
So is this the 2nd time in 2 days. Russia stopped trading on Tuesday as well. This type of activity — halting markets 2 days running — has the smell of a depression.
Russia halts trading after 17% share price fall
By Catherine Belton and Charles Clover in Moscow and Rachel Morarjee in London
Published: September 16 2008 15:07 | Last updated: September 16 2008 19:11
Russian shares suffered their steepest one-day fall in more than a decade on Tuesday, losing up to 20 per cent, as a sharp slide in oil prices and difficult money market conditions triggered a rush to sell.
The heads of the Russian central bank, the finance ministry and the financial market regulator met on Tuesday night for an emergency discussion on ways to halt the crisis.
http://www.ft.com/cms/s/0/6ff9306c-83f1-11dd-bf00-000077b07658.html?nclick_check=1
Best....
Do you really believe that 1. Georgia has bancrupted Lehman Brothers and others 2. the USA isn't suffering from the crisis in any way?
well, that was just $800 billion is losses.....I am sure the US is in the trillions....or googleillions.
Russia's collapse may leave the Russian Federation holding thousands of tanks and billions of gallons of oil. Wonder how they will feed their people with those assets ?
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