wowzers.. check out the russian markets.

[Texan4Life]

-17% Wow. Why are the russians getting hit so hard? Maybe because they are not propping up their banks?

 

[freelance]

Yeah, can anyone explain why the Russians are getting hit so hard?

 

[angelatc]

Fall in oil prices, maybe?

 

[Lafayette]

Yeah, can anyone explain why the Russians are getting hit so hard?

PPT punishing them for not playing ball?

 

[Arklatex]

Probably because they are on a big nationalizing hike again.

 

[bubbleboy]

Because thats what communist countries do, they control the economy for their own measure.

I bet they are making weapons, getting ready to donkey punch United Socialist States of America along with China for empire building and financial fraud.

 

[lodge939]

Investors are bailing out

 

[Knighted]

The Russian market as gauged by RSX is now down 68% from its high. Those are depression-era falls we're seeing.

 

[gaazn]

Yeah, can anyone explain why the Russians are getting hit so hard?

They are still getting hit by the commodities bubble...

 

[HOLLYWOOD]

Halted Twice during the trading day.


The snapshot not tlked about... 2 months in a row, CHINA, has reduced GASOLINE imports.

CHINA economy slows... CHINA NO LONGER buys the U.S. BILLS & BONGS (margin Call)

FREEFALLin!

 

[Kludge]

Don't forget the perception that Russia is becoming aggressive. (Georgia)

 

[jclay2]

Yeah I would tend to think it is because they are a lot more weighted to commodities but I could be completely wrong. Anyone Else?

 

[Zippyjuan]

Not sure of the reason, but they have shut down their exchange several times over the last few weeks. They automatically do so after they hit an 8% decline.
From September 18th: http://curiouslyinspired.wordpress....g-still-shut-down-on-russian-stock-exchanges/
They seem to have the same problems as everybody else.

Hardly unexpected: This crisis has been coming for a while but with Russians stubbornly denying that it might ever happen to them again. The links of the Russian market to the rest of the world economy are not to be underestimated and global ripple effects of the credit crunch are felt throughout.

The other 2 factors contributing to the current collapse in share prices are - the war in Georgia; and the fall in world oil prices.

Additionally, the Russian government has also generated conditions for their own credit crunch through an unchecked consumer lending in the last few years. Credit was freely available for all matter of purchases with no credit checks and only with some basic proof of income.

My prediction: This is going to get much worse shortly. Russia stands to suffer from the properly bubble bursting at any time soon. At the moment the ongoing building boom is unsustainable and is nothing short of a speculative pyramid scheme in property, with easy-come-easy-go money being invested in the housing market on an anticipation of an further unchecked rise in housing prices. These houses and flats are actually standing empty right across Moscow.

Banks which have been riding on a wave of relative economic prosperity in the past 5 years will start defaulting like they did in 1998 as the shocking state of their bad loan portfolio will emerge, and the credit crunch will set in preventing them from obtaining rescue loans from other institutions.

 

[Highland]

I think it is because there economy has been running on credit too...especially with Putin firing up the military again by competing with us...sounds like the Cold war bit both of us in the As* here in the 21st Century.

 

[Zippyjuan]

Energy has pretty much been the only good part of their economy for a few years now and with their production starting to decline, global demand startting to fall due to slowing economies, and the price of oil and gas falling they are taking in less money there. I believe their inflation has been around 20%. It was over 14% (annual rate) for April.