iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,500 Blog Posts

To the Victors Go the Spoils

Why isn’t the market going down with WW3 looming?

The market is betting on 1 billion plus people in the EU and America defeating Russia and their 140 million. The narrative of weakness in the west, due to low military stocks, can quite literally change quickly — providing they all started mass producing weapons again. The major disadvantage of the west isn’t in weapons, but logistics. The war is fought on Russia’s front porch and to get western weapons there, in a hot pan European war, will be very difficult.

All wars, eventually, end with diplomatic terms. Markets are betting on a WW2 belligerence by the west to force unconditional terms unto Russia, a nation without outward allies. The notion of China siding with Russia might turn out to be real — but for now it is clandestine.

I only mention this now because of the plethora of pro war statements coming out of the west today.

EUROPE IS ALREADY INDIRECTLY AT WAR WITH RUSSIA: ORBAN
Sunak Says NATO Should Make Ukraine Security Pledge by July
NATO Secretary General: The risk of an escalation of the conflict in Ukraine for NATO is incomparable with the danger of Russia’s victory.
“Ukraine must win the war” – German Defense Minister Pistorius
“The UK will be the first country to provide Ukraine with long-range weapons”

Markets will move in the direction it thinks will be victorious.

The Russian Ruble has been under considerable pressure the past 6 months.

Once upon a time, US markets dropped nearly 40% during WW2 because it was pricing in an Axis victory. When things on the ground and in the sea changed, markets went straight up. I believe the fate of this market, at least for 2023, is directly correlated with the conditions on the ground between Ukraine (NATO) and Russia, which is why I am somewhat fixated on news now.

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6 comments

  1. metalleg

    “… which is why I am somewhat fixated on news now.”

    I think the news you’re fixated on may be different than the news the market is fixated on.

    You have it right though. The market…not so much.

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  2. juice

    The west can nearly endlessly produce weapons, but Ukraine is nearly out of Ukrainians to be killed.

    The fight to the last Ukrainian is nearly over.

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    • richardweiner

      The Juice caused 9-11. Never get between the Juice and their money.

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      • juice

        punny u razist pos

        I didn’t know Osama & his gang were juice nor the US dark leadership/CIA which plotted to usurp mideast resources to further their pathological craving for world domination with the petro buck

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  3. purdy

    Putin has rudely used more of Russia’s resources for Russia and Russians. This cannot stand! Bring back a pliable drunk that the bankers can control!

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  4. fluxcapacitor

    This war won’t end with diplomatic terms. Ask the Carthaginians how it works.

    The powers that be won’t settle for anything less than a post-ww2-Germany outcome for Russia – the nation destroyed, its people set into servitude, and burdened with generations of collective guilt.

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