I’ll be watching this situation closely. In the meantime, some food for thought…it might be time for investors to give some serious thought to the major Russian names out there. Here is what I saw in the GDRs this morning...
I'm not personally of the opinion that Putin is the most effective head of state on the Globe, but there's no doubt Russians love him, and for good reason. From wikipedia:
He didn't even have to take his shirt off to do it. That's just the icing on the cake. The most sensible criticism of Putin I've seen (and I agree with it) is that he failed to effectively take advantage of the tremendous wealth pouring in from the energy sector to transform and diversify the economy to make it more broad based. His administration may have missed the boat on executing economic reform of the type that could more effectively insulated them from what is happening right now.
This line I didn't quite understand. Gains momentum from what? Haven't inflation hawks been predicting a manifestation for over half a decade now? Why have they been wrong for so long, and what is different in this instance? Not saying it won't/can't happen, I just don't understand the mechanism clearly this time.
I've read a few economists discussing the exposure to Russian debt in the European market since 'Red Monday', -I'm most curious about this. I wonder how long it will take to see if there's a major issue there that manifests...