Posted on 10/06/2008 6:31:13 AM PDT by TigerLikesRooster
Europe and Asia stock markets are also heavily down (4-8%) and the Dow is currently down over 300 points.
That $700B was just to bail out Goldman Sachs and the connected investors. The rest of the world would need more money than currently exists.
I wonder how this will affect Russia’s decision to increase military spending...
That's going to make it tough to fund their drunken belligerence.
We are coming up on Iran’s cost of extraction.
This is where life gets interesting.
And Brent Spot is at $87/bbl. Which means that Putie's choices will be to either lower the rate that the Russian treasury gets from oil, or see the revenues stop entirely as the industry shuts down production. And oil is the main source of Russian foreign exchange right now.
From the CIA Factbook:
Oil, natural gas, metals, and timber account for more than 80% of exports and 30% of government revenues, leaving the country vulnerable to swings in world commodity prices.Russia exports 5M bbl/day of oil, representing (5 * 365 * $85 =) $155B/year in tax revenue.
It would be nice if Senator McCain explained to Chairman Milhouse tomorrow night that this is what an economy that does not have solid fundamentals looks like.
Is there any reason I shouldn’t feel good whenever Russia or China have bad economic news?
There’s one. Bad economical news from Russia and China are just faint reflections of huge crisis engulfing US economy and stock market.
Something tells me we’ll fare the storm better than third-world fascist dictatorships like Russia.
US economy collapse is the main cause for the world crisis. If US gets better the whole world could sign with relief. If US fails then everyone is on its own and countries with lesser dependence on stock market (like China and Russia) have better chance.
You just keep telling yourself that. Chekist Putin modeled Russia’s economy after his good comrade Hugo Chavez’s Venezuela. You can root for global capitalism to fail but then how much do you think the price of Russia’s oil will drop? *snicker*
Russian stock market is very small and does not reflect the real situation in economics.
Russian economics growth is about 6% and there is no problem while oil price is more than $60/barrel.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.