Well they went and did it now.
This is a bold move, and one that is sure to escalate things quickly. Think about how much has been put at stake trying to lift Russia out of the pit of communism, over the past two decades. Think of Goldman Sachs’ Blankfein making cross continental trips all through the ’90’s, setting up access for foreign investment into Russia’s economy.
The move is crazy, of course. If Russia started hard confiscation of assets, you’re looking at a basic replay of what happened when they defaulted on their bonds in ’98. Economic stagnation, a plunge back into hard poverty, and all. Worse, even.
The trouble is, the Russian’s are just crazy enough not to care. The ’98 default itself didn’t make any sense. It was a clear blunder – to everyone – that would only hurt Russia and those who were trying to help support the country.
And they did it anyway. And the whole time, Russia’s “leadership” looked on with straight backs and the visage of complete confidence.
Threatening to confiscate assets to get your way is a lot like threatening to shoot yourself in the face. Sure it splatters the audience in blood and inconveniences them…but you’re the one that’s dead, idiot. Yet, here we are, watching “new” Russia follow in the footsteps of “old” Russia – plus Argentina and Venezuela – and you can’t help but wonder, do the people clutching the capacity to throw this switch know something that we don’t?
Like that keeping Russia-at-large somewhere just between the stone age (fighting polar bears with empty vodka bottles) and Flint, MI is personally the best outcome for them?
There’s a small part of me that’s tempted to jump around and start hunting for deals; scouting around for people willing to take $0.50 on the dollar for their now very much imperiled Russian stakes. But that small part is quickly squelched by the much larger part of me that wants nothing to do with gangster thugs running a cross between a cult and a crime syndicate.
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USU filed bankruptcy today, FYI.
And another enjoyable post…
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who supplies 25% or more of nat gas to Germany, UK & several other european countries?
what 2 major countries own a boatload of tbills? hint c…, r…
what would happen if a uk gas supplier began requiring 10% payments for gas from the uk?
why do dumb presidents always choose even dumber vp’s?
who has sunburn missles?
who has a magnetic pulse weapon that fried a us warship in 2011? the ship had to be towed back and scrapped. the story didn’t make cnn
oduma will have to back down again on this threat.
I’m with on UEC (Rick Rule’s in on it, need I say more) I think he said $70/ is break even; these prices can’t last forever. Also on U308.
Down the line, Germany will work with China & Russia, no longer US – financial necesity. When things break, they & other ‘allies” must save themselves.
Isn’t it odd that JPM’s NYC HQ was sold to the Chinese $2 billion below market. Their underground vaults are connected to the Fed. Move along, move along, nothing to see here.
CORRECTIONS:
what would happen if a uk gas supplier began requiring 10% payments IN GOLD for gas TO the uk?
your opinion on USU filing for bankruptcy? Is this a stock to avoid or opportunity here?
Three years ago, almost to the day, when I came out and said that the Fukushima nuclear crisis would be the buying opportunity of a lifetime, I laid down two ground rules:
1) be in for the long haul, willing to take the hits and buy the blood
And
2) Stay away from the small miners, because they were going to get dragged into bankruptcy
USU is hardly the last miner that will fold. There are plenty of other candidates with no cash desperate for business – who do you think has been driving the price down?
Actually, we need these explosions because they’ll give the major players the legroom to offer buyouts on the cheap and ultimately lead to shoring up price markets for nuclear fuel.
I have no interest in USU at all. Why let yourself get dragged into a bankruptcy proceeding where a thousand things can go wrong and wash you out, when CCJ has at least 200% of upside from here? Maybe more like 300-400%.
UEC doesn’t look that bad which is why I took a small gamble, but even there is a lot of risk. You could maybe make the case for a URRE since they’ve raised a bunch of cash to improve their operations. But again, why?
CCJ is as close to a sure thing as you can get, and the rewards are rich. No reason to be greedy, trying to juggle the small explosives because you want to maybe get bragging rights for hitting an extra 500% return.
How much can you reasonable risk in that pursuit anyway? if at most you can put 2-3% on the line, because the bottom is $0.00, you might as well throw 15% of your account at the clean deal and call it a night.
thnxs for reply. My thoughts were they g o thru bankruptcy, and then coming out of bankruptcy the stock might be a good buy then. Just don’t know if/when that might happen.
http://fullcomment.nationalpost.com/2014/03/05/kelly-mcparland-putin-acts-like-a-former-soviet-kgb-agent-why-are-we-surprised/
That’s a pretty fair assessment. Mind you, I’m still not dumb enough to invest in Russia, because they’re still mobsters. But that’s a fair assessment.
Been in CCJ with you, although I admit to lightening up before going on vacation (mistake). DNN is a smaller, higher beta play that has no debt. Any thoughts?