“It's panic. There are problems with liquidity on the market. People are having problems with refinancing their positions so they started selling.” -Oleg Vorotnitsky, Uralsib Financial Corp.
One of the BRIC’s* just bricked…
Eventually they will all get rinsed like this. Hot money moves fast… and hot money is ‘weak’ money. Expect forced liquidation and repatriation in size.
Russia's Micex Index Falls Most Ever After Dollar Rates Double: “Russia's Micex Index fell the most since Bloomberg began tracking the measure in May 2001, losing 14 percent, after the cost of borrowing in dollars overnight more than doubled and as oil prices tumbled.
OAO Sberbank and OAO VTB Group, Russia's two biggest banks, led the decline in Moscow, falling 14 percent and 16 percent respectively. Financial stocks worldwide slid after American International Group Inc., the biggest U.S. insurer, had its credit ratings downgraded. OAO Rosneft, the government-controlled oil producer, lost 10 percent.
The ruble-denominated Micex plunged 14 percent to 919.24 at 4:11 p.m. in Moscow, the lowest level in almost three years. The dollar-denominated RTS Index dropped 10 percent to 1,151.16, a 54 percent retreat from its highest close of 2,487.92, on May 19.”
*BRIC = Brazil, Russia, India and China
One of the BRIC’s* just bricked…
Eventually they will all get rinsed like this. Hot money moves fast… and hot money is ‘weak’ money. Expect forced liquidation and repatriation in size.
Russia's Micex Index Falls Most Ever After Dollar Rates Double: “Russia's Micex Index fell the most since Bloomberg began tracking the measure in May 2001, losing 14 percent, after the cost of borrowing in dollars overnight more than doubled and as oil prices tumbled.
OAO Sberbank and OAO VTB Group, Russia's two biggest banks, led the decline in Moscow, falling 14 percent and 16 percent respectively. Financial stocks worldwide slid after American International Group Inc., the biggest U.S. insurer, had its credit ratings downgraded. OAO Rosneft, the government-controlled oil producer, lost 10 percent.
The ruble-denominated Micex plunged 14 percent to 919.24 at 4:11 p.m. in Moscow, the lowest level in almost three years. The dollar-denominated RTS Index dropped 10 percent to 1,151.16, a 54 percent retreat from its highest close of 2,487.92, on May 19.”
*BRIC = Brazil, Russia, India and China
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1 comments:
Thanks for the humour on such a dark day. Made me laugh.
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