>* Kremlin considers banning ALL personal loans
* Over 2 million Russians stop repaying credit cards
* Consumer and mortgage loan defaults skyrocket
* Liquidity in Russian banks has dropped to just 9.5%
* Central Bank warns: “We must brace for volatility”
* 199 trillion rubles ($2.19 trillion) in assets—only 19 trillion rubles ($209B) are liquid
* Sanctions threaten 80% of Russia’s oil exports
* Bond markets and housing sector near collapse
The ruble has turned into rubble.
High time coming.
Russians should be panicking. Their “leaders” should be considering an exit strategy. First from Ukraine. From Russia, if there’s time.
Sounds good!
Still plenty of them finding their way to Thailand, Vietnam and the like, for holidays
India and China might be buying 80% of Russian oil now but that amounts to a pittance in absolute terms with Europe pre war. Their market has effectively collapsed and further steps are coming, the EU is preparing moves including ceasing all new sales contracts for example.
I still don’t really buy that Russia’s financial collapse is arriving, its clearly coming soon but theres no panic apparent yet. The signs are becoming dire for them and its starting to look unavoidable but I still think they have a summer of pretending increasingly unconvincingly that everything is fine.
But I suspect there will be a final few rounds of last resort measures taken to keep the economy functioning for another few months yet such as pouring in massive cash injections from the national wealth fund and the gold reserve. Such actions will probably see what healthy money remains in Russia fully depleted and force the state to draw money out of the real economy even faster to keep the war going. They are already depleting those reserves suicidally fast.
Above all else the money is clearly running out in Russia and the state cannot really do anything about it, they are in fact taking the money away from the banks and the people themselves. It looks very much like they will need radical action simply to keep the banks functioning and thats completely unsustainable.
No country can afford to give away 10% of its banks total loans (much less a failing one) and that doesn’t even touch the problems actually driving the ever rising percentage, if they do it this will be ruinously expensive in the full meaning of the word and provide strictly temporary relief. 3 months later they will be back in the same situation with no more money to spend on solving the problem.
Just wait until the average Russian trooper learns their pay and their signup bonus is about to become worthless. This was involved in the 1917 revolution and it directly triggered the 1989 one.
9 comments
>* Kremlin considers banning ALL personal loans
* Over 2 million Russians stop repaying credit cards
* Consumer and mortgage loan defaults skyrocket
* Liquidity in Russian banks has dropped to just 9.5%
* Central Bank warns: “We must brace for volatility”
* 199 trillion rubles ($2.19 trillion) in assets—only 19 trillion rubles ($209B) are liquid
* Sanctions threaten 80% of Russia’s oil exports
* Bond markets and housing sector near collapse
The ruble has turned into rubble.
High time coming.
Russians should be panicking. Their “leaders” should be considering an exit strategy. First from Ukraine. From Russia, if there’s time.
Sounds good!
Still plenty of them finding their way to Thailand, Vietnam and the like, for holidays
It can be solved in 10 minutes.
1 ruble = 1 dog shit
USD//Rub exchange rate doesn’t suggest imminent collapse..
India and China might be buying 80% of Russian oil now but that amounts to a pittance in absolute terms with Europe pre war. Their market has effectively collapsed and further steps are coming, the EU is preparing moves including ceasing all new sales contracts for example.
I still don’t really buy that Russia’s financial collapse is arriving, its clearly coming soon but theres no panic apparent yet. The signs are becoming dire for them and its starting to look unavoidable but I still think they have a summer of pretending increasingly unconvincingly that everything is fine.
But I suspect there will be a final few rounds of last resort measures taken to keep the economy functioning for another few months yet such as pouring in massive cash injections from the national wealth fund and the gold reserve. Such actions will probably see what healthy money remains in Russia fully depleted and force the state to draw money out of the real economy even faster to keep the war going. They are already depleting those reserves suicidally fast.
Above all else the money is clearly running out in Russia and the state cannot really do anything about it, they are in fact taking the money away from the banks and the people themselves. It looks very much like they will need radical action simply to keep the banks functioning and thats completely unsustainable.
No country can afford to give away 10% of its banks total loans (much less a failing one) and that doesn’t even touch the problems actually driving the ever rising percentage, if they do it this will be ruinously expensive in the full meaning of the word and provide strictly temporary relief. 3 months later they will be back in the same situation with no more money to spend on solving the problem.
Just wait until the average Russian trooper learns their pay and their signup bonus is about to become worthless. This was involved in the 1917 revolution and it directly triggered the 1989 one.
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