Bailout Nation, Soviet Style: Russian Trading Halt
The criminal enterprise, formerly known as Russia, has decided to halt trading. With its stock market down 57%, Putin & Co. are being even more risk averse than Paulson, Bernanke, et.al. & Co.
"Russian markets stopped trading for a second day after emergency funding measures by the government failed to halt the biggest stock rout since the country's debt default and currency devaluation a decade ago.
The ruble-denominated Micex Stock Exchange suspended trading indefinitely at 12:10 p.m. after its index erased a 7.6 percent gain and plunged as much as 10 percent within an hour. The benchmark fell 17 percent yesterday, the biggest drop since Bloomberg started tracking the gauge in May 2001. The dollar- denominated RTS halted trading after similar declines.
The government yesterday injected $20 billion into the interbank lending market via central bank and Finance Ministry auctions in a bid to contain soaring borrowing rates as credit dried up in the wake of the Lehman Brothers Holdings Inc. bankruptcy. The one-day MosPrime overnight rate, a gauge for monitoring liquidity demand, leapt 25 basis points to a record 11.08 percent today."
Here in the US, we may be well meaning interventionists Socialists -- but at least our markets are open !
>
Source:
Russian Markets Halted as Emergency Funding Fails to Halt Rout
Alex Nicholson and William Mauldin
Bloomberg, Sept. 17 2008
http://www.bloomberg.com/apps/news?pid=20601087&sid=aIRza4.azeC4
Wednesday, September 17, 2008 | 09:37 AM | Permalink
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Comments
BR:Surely the bigger question is why anyone, anyone, would invest a cent in this place. But the reality is plenty in the west line up to do so.
Posted by: John(2) | Sep 17, 2008 9:45:40 AM
God, I love how all the nabobs of news are outraged, yes outraged, at the lack of transparency in the credit swaps. Crameresque.
Posted by: Amos Satterlee | Sep 17, 2008 9:46:24 AM
Thank God it's contained. Right, Hank?... Hank?
Posted by: Winston Munn | Sep 17, 2008 9:48:41 AM
Nothing says "We're f*cked and desperate" like a good old fashioned forced shut down. Other than Gazprom, what value IS there in Russia anyhow :P
Posted by: RussianBear | Sep 17, 2008 9:51:07 AM
Criminal enterprise former known as Russia...
Our market sare open - hardly!
USA = manipulated by an oligarchy and subsidized by the US taxpayer - thieves and
a hefty dose of socialism. Who looses... me and the other chumps trying to build a stash.
Crooks are crooks wherever they live. And the USA has more than enough.
Whew!
Posted by: c. dorman | Sep 17, 2008 9:52:25 AM
These hand-made securities - credit swaps, etc... - are designed with on key feature, uniqueness, so they can be sold over a phone, by a human, that means commissions.
Think of it this way, you're Georgia, Russia's calling you, they have something for you...
Posted by: VennData | Sep 17, 2008 9:56:50 AM
"Here in the US, we may be well meaning interventionists Socialists -- but at least our markets are open !"
So, now Russia joins the elite company of Pakistan and Nigeria in shutting down their stock exchanges....
Don't worry Barry. Before the end of this year, our markets will be shutdown "temporarily" to allow an "orderly and functioning market."
They'll come up with some good reasons for shutting it down.
- AT
Posted by: Andy Tabbo | Sep 17, 2008 9:59:40 AM
If US markets went down that fast that hard, our markets would be closed for periods of time, too.
Posted by: wunsacon | Sep 17, 2008 10:00:16 AM
Maybe the Comrades need to huddle with the Zimbabweans ... one has hyper-deflation and the other hyper-inflation.
Posted by: Chief Tomahawk | Sep 17, 2008 10:01:16 AM
Or should that be hypo-deflation???
Posted by: Chief Tomahawk | Sep 17, 2008 10:02:15 AM
Easy now Barry...how long will it be before we see trading halts on Western exchanges? Care to comment on that?
BTW Russian stocks are still trading in London today and are up +10%. Large institional buyers are sniffing around at these levels, esp. the oil & gas names, i.e. those that are backed by real tangible assets and not paper/derivatives/crap.
Now is not the time to be drawing comparisons about how poorly other markets like Russia/China are performing lately...
Posted by: dapoopa | Sep 17, 2008 10:04:38 AM
Vipers and Thieves Redux?
Recall this quote from Andrew Jackson in 1836?....closing the Second Bank of the US.
"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.''
Posted by: Lars | Sep 17, 2008 10:06:22 AM
If the NY exchange dropped by 10% (as the market in russia did), our markets would close.
Of course....
Posted by: hankest | Sep 17, 2008 10:08:12 AM
14:01
*U.S. TREASURY TO ISSUE DEBT TO EXPAND FED'S BALANCE SHEET
And so it begins...
Posted by: Weeee | Sep 17, 2008 10:08:22 AM
"Here in the US, we may be well meaning interventionists Socialists -- but at least our markets are open !"
So how far behind are we? We ban shorts. We ban commodities speculators? The government nationalizes banks and insurance companies. That is an open free market?
So tell me, are stocks going up or down. Up based on government intervention or down based on fundamentals?
Posted by: me | Sep 17, 2008 10:10:31 AM
That would be this "open market"?
`Naked' Short-Selling Limits Ordered by SEC in Bid to Curb Market Turmoil'
http://www.bloomberg.com/apps/news?pid=20601087&sid=acrJlH57GgO4&refer=home
Come on now, where's that rally spirit!
Posted by: Sheep | Sep 17, 2008 10:11:04 AM
Bill Gross is our version of the Russian oligarch, except his wealth flows from the quasi-nationalization of the insurance and credit industries, whereas the typical Russian oligarch got his from quasi-privatization.
From whichever direction, they both end up in the same place: As partners in crime with the government.
Posted by: Donkei | Sep 17, 2008 10:16:39 AM
I wonder if the current world market conditions would lead to contagion? I remember that being a key buzzword for the last devaluation of the peso, rubel and stock markets in asia. The media seem fixated on just the US and whether we are in a recession or depression. But not many discuss contagion.
Posted by: marcus | Sep 17, 2008 10:22:17 AM
Putin … risk averse?
They’re not avoiding risk; only delaying the inevitable and making matters worse in the process.
Short RSX anyone?
Posted by: D.L. | Sep 17, 2008 10:28:31 AM
jesus, this is coming from you??? The Country of the Free Markets???? Look! that brown stuff that is hitting the fan is about to stain your blouse
Posted by: this is it | Sep 17, 2008 10:32:12 AM
They are still open because they haven't fallen 57%.
Posted by: Katie | Sep 17, 2008 10:39:18 AM
Never gloat. Paybacks happen.
Posted by: wally | Sep 17, 2008 10:41:28 AM
"Who looses... me and the other chumps trying to build a stash."
It's the same the whole world over:
It's the poor what gets the blame.
It's the rich what gets the pleasure;
Ain't it all a bloomin' shame.
-- Late 19th century (to be sung with an exaggerated Cockney accent)
Posted by: Joshua | Sep 17, 2008 10:44:06 AM
The wreckage is indeed contained...
to the planet Earth!
HCF
Posted by: HCF | Sep 17, 2008 10:48:58 AM
Call me a gloater: the d-bag set of Johnny-come-lately institutional investors has been cheering Putin and commodities. Both are in the crapper. Maybe Chinda is next?
The lesson: investing is hard work. People that act like it is obvious should suffer and eventually, they usually do.
Posted by: Mean Mister Mustard | Sep 17, 2008 10:54:13 AM
