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R K

Russia Downgraded By Fitch To Bbb- From Bbb. 1 Above Junk

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Guest Jemmy Button

RK. even your thread about the Russian Bear was downgraded to junk. That thread just got TOO silly to bother reading.

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and yet all this AAA non junk lead to near shut down of the Western Banking system, which has needed "liquidity" fresh from Never Never Land ever since, and even that hasnt been enough...

The Whole system still has AAA parts, but is held up by former AAA now junk bailed by The Wicked Banker of the West.

And yet people still take the advice from the Looking glass, just who is the fairest of them all.

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Does anyone care anymore?

There seems to be a total disconnect between the 'markets' and any other kind of economic parameters . . . or reality.

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I can see oil getting down (later this year) to low $40s. THAT would make RSX index an amazing buy on a 5 yr view (maybe a 12 month view)

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The ratings industry is bought and paid for by the banks.

Never forget: Greece and Bank of Ireland were AAA right before.

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http://www.economist.com/news/leaders/21633813-it-closer-crisis-west-or-vladimir-putin-realise-wounded-economy

An old article, but pertinent as it shows Russia's external debt is half a trillion dollars. Wouldn't expect we are on the hook for losses. Would guess may be the Japs and Germans...1998 once bitten by the Bear twice shy i would have thought.

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RK. even your thread about the Russian Bear was downgraded to junk. That thread just got TOO silly to bother reading.

Only because it got diverted to politics rather than economics.

it's a bit like one of the many supermarket threads that starts with a detailed financial analysis but by post #4 every man and is dog is posting about the fact that the onions should be in aisle 7 rather than aisle 3 and they will never shop there again because of it.

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http://www.economist.com/news/leaders/21633813-it-closer-crisis-west-or-vladimir-putin-realise-wounded-economy

An old article, but pertinent as it shows Russia's external debt is half a trillion dollars. Wouldn't expect we are on the hook for losses. Would guess may be the Japs and Germans...1998 once bitten by the Bear twice shy i would have thought.

A fair amount of gratuitous Vlad bashing in this article as well.

In terms of bank exposure, it's France, Austria and Italy.

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. . . because it got diverted to politics rather than economics.

Even worse than that. Some Russophobic Kid banging on about transexuals and driving licences.

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RK. even your thread about the Russian Bear was downgraded to junk. That thread just got TOO silly to bother reading.

It was trolled off the main forum by the usual suspects

The collapse of Russia as it evolves over the coming year onwards is one of the most significant economic events on the calendar, it would be preferable to ban the trolls rather than the thread.

Edited by R K

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It was trolled off the main forum by the usual suspects

The collapse of Russia as it evolves over the coming year onwards is one of the most significant economic events on the calendar

Oh, come on, RK. Economic recession, certainly. But 'The collapse of Russia' ? Wishful thinking perhaps?

I agree about the significance and the knock on effects. Some EU countries/banks might really collapse. Largely those that are having 'their tail wagged by the German dog' . . . as you so eloquently put it on another thread. Now we have Germany directing both economic and foreign policy of the EU . . . and one size does not fit all any better.

Or were you just trolling us off?

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[quote name="Killer Bunny" post="1102649547"

Never forget: Greece and Bank of Ireland were AAA right before.

No, don't remember this. Don't think either has ever been AAA.

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Oh, come on, RK. Economic recession, certainly. But 'The collapse of Russia' ? Wishful thinking perhaps?

I agree about the significance and the knock on effects. Some EU countries/banks might really collapse. Largely those that are having 'their tail wagged by the German dog' . . . as you so eloquently put it on another thread. Now we have Germany directing both economic and foreign policy of the EU . . . and one size does not fit all any better.

Or were you just trolling us off?

Title was "Collapse of the Russian Bear"

Economically. This is the "House prices and the Economy" forum is it not?

There are threads on Greece, Germany, Italy, Cypus, France etc etc on the main forum. Russia is a biggie, same as it was in '98 with LTCM.

Capital flight from Russia will result in economic collapse (again). Currency has already fallen significantly, now debt is down graded.

It's happening.................

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I guess the big question for the Russians in the face of the oil rout is what if anything they can do to boost other areas of their economy.

Presumably they are going to have an issue with unemployment because of the workers who will be made redundant from the O&G sector. I suppose the obvious thing to do would be to encourage investment in manufacturing previously imported items and take advantage of the increased competitivity of Russian labour an materials prices. Funding this is probably more the challenge. The Western solution would be money printing, but this is difficult while you have increasing import costs feeding into inflation. I guess ultimately they may need to go down this path anyway, and once the currency has stabilised and imports are no longer feeding in there is nothing to stop them doing it anyway. The only question is probably whether they should wait until then.

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Yawn. Just another example of the weaponised rating agencies being wheeled into action.

Anyone still taking the Rating agencies seriously needs their head examined. As if the mortgage securities debacle wasn't enough ...

Edited by Errol

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