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thecrashingisles

Will Ruble Rout Leave Prime London Bubble In Rubble?

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With the Russian ruble plummeting along with oil prices, is the party over for the lesser-oligarchs in London? The ruble is now over 84 to the pound, a massive drop in a very short period of time. If priced in rubles then London property assets have just gone through the roof - will some be tempted to sell up?

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nah, theyll either get a bigger mortgage or they will obviously miss the boat.

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It's a massive drop as you say, CI.

People are very nervous . . . we may see some bank runs.

During the last crash, people changed their wages into dollars as soon as they were paid . . . there were change kiosks on every street corner.

People with their money in property will leave it there. But I guess there will be some knock-on effects for the EU. The big spending Russian tourists won't be coming. This will be particularly bad news for Cyprus and Greece.

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It's a massive drop as you say, CI.

People are very nervous . . . we may see some bank runs.

During the last crash, people changed their wages into dollars as soon as they were paid . . . there were change kiosks on every street corner.

People with their money in property will leave it there. But I guess there will be some knock-on effects for the EU. The big spending Russian tourists won't be coming. This will be particularly bad news for Cyprus and Greece.

Might be the kicker that finally forces them out of the EU?

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Just a little bit of insight into weaker Ruble in Russia. Despite sanctions, Russian companies having to find ways to roll over multi-millions/billions of debt in US $ in months ahead, there is possibly a way out for Gov... little external debt against the value of all their assets. Whereas UK...

Bloomberg Businessweek

Ordinary Russians Suffer Ruble Shock
By Elena Popina November 27, 2014

[..]After having a tooth pulled, Ulyana Lyubyatina, an accountant, says she was told in September that an implant made in Italy would cost 18,000 rubles, or about $480—“a huge sum of money for me.” The dental office told her a week later that it was out of the implants and needed to reorder and that she would be charged 24,000 rubles. In November, she says, the price climbed to 25,000 rubles. Reluctant to buy an inferior Russian-made implant, Lyubyatina is stuck with a temporary plastic tooth. “I don’t know what to do,” she says, shouting over the downtown traffic as she stands in line at an ATM. “I hope the ruble chaos will eventually calm down. What is going on now is crazy.”

http://www.businessweek.com/articles/2014-11-27/ordinary-russians-suffer-as-ruble-plunges

One Russian looking for a new buyer of one of his London houses...

http://www.dailymail.co.uk/news/article-2674977/Londons-cut-price-mansions-How-series-super-prime-houses-available-millions-original-asking-price.html

http://www.dailymail.co.uk/news/article-2690093/Revealed-Billionaire-party-animal-s-snapped-Britain-s-expensive-house-120m-London.html

http://www.rightmove.co.uk/property-for-sale/property-46843496.html

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Just a little bit of insight into weaker Ruble in Russia. Despite sanctions, Russian companies having to find ways to roll over multi-millions/billions of debt in US $ in months ahead, there is possibly a way out for Gov... little external debt against the value of all their assets. Whereas UK...

One Russian looking for a new buyer of one of his London houses...

http://www.dailymail.co.uk/news/article-2674977/Londons-cut-price-mansions-How-series-super-prime-houses-available-millions-original-asking-price.html

http://www.dailymail.co.uk/news/article-2690093/Revealed-Billionaire-party-animal-s-snapped-Britain-s-expensive-house-120m-London.html

http://www.rightmove.co.uk/property-for-sale/property-46843496.html

One less export for the Manufacturer.

Sanctions are not a one way deal.

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Sanctions are not a one way deal.

Absolutely not. Especially when Russia is well-known to play tit for tat.

The Ukraine business has provided a wonderful Putin hatefest for Russophobes, but how is it that no-one at the EU did any sums? . . . the final cost will be zillions.

Hungary is hurting. Bulgaria is totally ticked off about South Stream - terrible energy poverty there, Cyprus is totally dependent upon its half a million Russian tourists . . . The EU simply can't compensate everyone, as it has promised to do with Poland's 790,000 tonnes of uneaten eating apples . . (enough to sink a battleship . . . French perhaps)

Anyway, back on topic, isn't it the Chinese now into London property? 'Swinging Londongrad was in the old days of the exiles, like Berezovsky and Abramovich.

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Savings of surplus state piling into assets of deficit state.

Solution: get rid of state arbitrage - international trade unit based on energy resources. But that's a bit French, so the Anglos will oppose it to destruction.

Edited by okaycuckoo

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