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re: Update pg 23: Russia,IMO, will default on its sovereign debt within six months

Posted on 12/4/14 at 9:00 pm to
Posted by Sid in Lakeshore
Member since Oct 2008
41956 posts
Posted on 12/4/14 at 9:00 pm to
Alpha who is begging his citizens to repatriate foreign currency. He broke.

It will be interesting to see how much shite the Russian citizens put up with before stuff gets touchy for Putin.
Posted by cwill
Member since Jan 2005
54753 posts
Posted on 12/4/14 at 9:11 pm to
quote:

quote:
Me.


Well, it might be you but it certainly isn't rational.


I don't think you understand risk.
Posted by TOKEN
Member since Feb 2014
11990 posts
Posted on 12/4/14 at 10:20 pm to
Obama doing work on Putin.
Posted by Layabout
Baton Rouge
Member since Jul 2011
11082 posts
Posted on 12/5/14 at 4:39 am to
quote:

That looks like a good incentive for them to start a war with the former-Soviet Baltic countries.


This is the real danger. Press them to the ropes and they'll start to get desperate and desperate people do very unwise things.
Posted by StraightCashHomey21
Aberdeen,NC
Member since Jul 2009
125500 posts
Posted on 12/5/14 at 4:43 am to
quote:

It will be interesting to see how much shite the Russian citizens put up with before stuff gets touchy for Putin.



Kremlin controlled media will blame the west. Putin will still be loved.
Posted by SuperSaint
Sorting Out OT BS Since '2007'
Member since Sep 2007
140462 posts
Posted on 12/5/14 at 5:23 am to
No doubt, people like to use the word "Sheeple" often, but those Eastern Slavic Russkiyes are the definition of the word.
Posted by Iosh
Bureau of Interstellar Immigration
Member since Dec 2012
18941 posts
Posted on 12/6/14 at 3:20 am to
quote:

This is a short ETF amusingly referred to as "Russia Bear." If you think Russia's economy is about to skip the tracks entirely it might not hurt to speculate here a bit.


birdmanhandrub.gif
Posted by Iosh
Bureau of Interstellar Immigration
Member since Dec 2012
18941 posts
Posted on 12/15/14 at 10:34 am to
It finally happened



(There is a running joke in Russia that the price of oil, the price of the dollar, and Putin's age would all be the same before the end of the year.)

EDIT: Sberbank is under $4. I hope y'all jumped on my RUSS tip because that shite is going to the moon today.
This post was edited on 12/15/14 at 10:39 am
Posted by Big Scrub TX
Member since Dec 2013
33706 posts
Posted on 12/15/14 at 12:09 pm to
quote:

I don't think you understand risk.


I understand perfectly well. Something that has been predicted by the OP as effectively a 100% chance of happening is able to be traded as if it were only a 6.6% chance as of today. It's highly asymmetric in the favor of the person saying 100%. That's the very definition of good risk management: focusing on trades with limited and known downside for an upside that is many multiples of your capital at risk.
Posted by Iosh
Bureau of Interstellar Immigration
Member since Dec 2012
18941 posts
Posted on 12/15/14 at 12:34 pm to


I'm not saying Russia will default, but I am definitely on board with the idea that LSURussian is correct in being way more pessimistic about their prospects than "the markets" have been.
Posted by Iosh
Bureau of Interstellar Immigration
Member since Dec 2012
18941 posts
Posted on 12/15/14 at 5:57 pm to
Russia announced a 6.5% rate hike today. This less than a week after a 1% rate hike.
Posted by LSURussian
Member since Feb 2005
127099 posts
Posted on 12/15/14 at 7:48 pm to
quote:


I understand perfectly well.
You might understand risk but what you are totally clueless about is Russia.
Posted by LSU0358
Member since Jan 2005
7920 posts
Posted on 12/15/14 at 7:53 pm to
Up to 17%...wow.
Posted by 1234567VFL
Nashville
Member since Jun 2014
1272 posts
Posted on 12/15/14 at 7:57 pm to
War will break before a default occur.
Posted by LSURussian
Member since Feb 2005
127099 posts
Posted on 12/15/14 at 7:59 pm to
Why? It didn't in 1998 when Russia last defaulted on its debt. Besides, Russia is already involved in a war.
Posted by 1234567VFL
Nashville
Member since Jun 2014
1272 posts
Posted on 12/15/14 at 8:02 pm to
Things are a little different this time, but you are correct that a war is already going. A big one will occur if the sacntions continue.
Posted by LSURussian
Member since Feb 2005
127099 posts
Posted on 12/15/14 at 8:05 pm to
quote:

Up to 17%...wow.

Right, and that's the Central Bank's overnight lending rate. Imagine trying to get a rate on a five-year loan.

What some may have missed is the CBR increased its dollar lending limit to banks from $1.5 million to $5 million. That means banks are desparate to obtain dollars, probably because they can't meet their dollar obligations coming due, including meeting their customers' demands to withdraw their dollars from the banks.
This post was edited on 12/15/14 at 8:07 pm
Posted by LSU0358
Member since Jan 2005
7920 posts
Posted on 12/15/14 at 8:12 pm to
Yes, it's ugly.

Don't know if I buy an all out war some are mentioning. Wars take money, and Russia has none. I lean towards trouble being caused with Putin jacking up natural gas prices the first big cold spell Europe has, or cutting it off.
Posted by 1234567VFL
Nashville
Member since Jun 2014
1272 posts
Posted on 12/15/14 at 8:15 pm to
Do wars burn money or natural resources?
Posted by LSURussian
Member since Feb 2005
127099 posts
Posted on 12/15/14 at 8:16 pm to
Both.
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