Truly, a bear market. A Russian bear.
Above: How prophetic now, the bear looking in on the Democratic Convention.
A fascinating lead, you read it here first…
AKTUELL: Early edition Op-Ed piece via The Moscow Times, Turning Russia into a Global Citizen, by Aleh Tsyvinski. (The article was published on Oct. 13, 2008, Moscow time.) So, it is very fresh.
From the article: “The government is sitting on a giant pile of cash that it plans to invest in foreign assets. It began to flex its economic muscle this week, when the prime minister of Iceland announced that Russia may lend it 4 billion euros ($5.4 billion) to shore up its teetering financial system. Who would have thought that, given the chaotic Russia of the 1990s, a mere 10 years later it would be in the position to bail out a developed country and NATO member? Even more surprising is the fact that this helping hand for Iceland comes at a time when the domestic stock market is in a free fall and trading on the Moscow stock exchange is routinely halted.
The Kremlin thinks that now is the time to buy assets cheaply, using the current financial crisis to emerge as a powerful global economic player.”
Geotypografika: Warren Buffett recently reminded us all, in conversation with Charlie Rose, that cash is king, especially now. Russia may be bailing out Iceland? Let’s see, who else has large amounts of capital, aside from the obvious, petro-dollar earning nations? Now, it may not be just sports teams available on the market, but respected banks, credit institutions, auto manufacturers and more, all at a great price.
Suddenly, nationalizing financial institutions has truly political and geopolitical dimensions. Is this what the Western leaders fear most right now, a buying up of “national” assets in a fire-sale?
Stories about Platini and international football may not seem so ridiculous anymore. Is this Western economic xenophobia, suddenly crystallized in the form of the largest open-door in history? Buy American, Buy European has never been cheaper.
Tomorrow, Monday the 13th, 2008, we may see the first shifts toward a new future global fulcrum, with money from the Eastern nations dominating the scene.
Where will Gazprom invest, for example? Or TATA? Or China’s Snow Beer, who recently edged out Bud Light in top global sales. Ja, seriously.
Let’s just see what happens.