A tiny article read

Discussion in 'General Trading Discussion' started by dianethare, Jun 8, 2014.

  1. dianethare

    dianethare Senior Investor

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    I was searching through the net yesterday and i came across this, since am still new and learning about stock market and all that it entails, i was just wondering, why would Vladimir Putin do this, is it in utter retaliation or...? and does this affect the world market adversely in negative or positive light, I really couldn't figure out no matter how many times, i read and re-read the article;

    https://learni.st/boards/64677/learnings/540899-putin-russia-to-buy-15-billion-in-ukraine-bonds

    Somebody kindly explain/enlighten me more, i appreciate:)
     
    Last edited: Jun 8, 2014
  2. Leeroy_MY

    Leeroy_MY Well-Known Member

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    Why not? He is obviously trying to woo Ukraine back into the arms of Mother Russia after the pro EU faction violently ousted the man he had put into power to ensure Ukraine's loyalty to Russia with this economic biscuit.

    But seeing how Ukraine is the world's 3rd largest grain exporter and has been a major trading partner and ally to Russia for the past 23 years since 'independence', Putin's 'investment' of buying more influence in Ukraine hardly seems like a bad gamble.

    Plus with the Natural Gas offer, you can be sure that many major businessmen will start to sway towards Russia and start lobbying the new government to be more considerate about Russia's demands. Now they are also literally neighbors with Crimea using Russian currency. LOL
     
  3. dianethare

    dianethare Senior Investor

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    Thank you Leeroy_MY...he sure got them where he wants them, but in the light of all of these happenings, are we confident in seeing a war end between the two countries or its still a far-stretch away?...am asking having the stock market in mind.
     
  4. Allison2021

    Allison2021 Well-Known Member

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    Putin won't go to war. His economy couldn't afford it. He wants to make money of all that oil. He's trying to sell some the North Koreans at this very moment.
    O
    ur government could pull a little sneaky trick. Get the Iraq, and Nigerian oil fields to flow like a water faucet.
    Oh, yeah! get those oil Futures and Puts guys to behave themselves.:eek:
    That would drastically make the price of oil drop like a rock. That may make him withdraw from the Ukraine all together.
     
  5. Leeroy_MY

    Leeroy_MY Well-Known Member

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    There will not be war. Because they are both countries with atomic bombs and they are smart enough to know that there are boundaries that should never be crossed lest it'll result in M.A.D (mutually assured destruction), both sides will try their hardest to resolve any conflict before it comes to warfare between them.

    That's why Putin had to resort to deception and feigned ignorance like "no, no. we are only here to protect the russians." and "oh, those armed protestors are totally Ukrainians attacking their own country and not uncover Russian troops. But if you dare to touch them we will retaliate though." to take back at least Crimea when the E.U stole Ukraine away from him via a violent revolution. Even at his worst, he is still trying to avoid direct conflict with the west.

    Anyway, regarding the stock markets. Well, I believe that global conflicts like this are both a blessing and curse. Because as sanctions and embargoes get imposed, the affected countries are forced to move their business elsewhere like Putin moving Russia's natural gas to China and South Korea at lower prices, stock prices will also fluctuate accordingly and a sharp and opportunistic enough investor might use these opportunities to make a fortune if he times his moves right in the Asian markets.

    That said, embargoes and sanctions will only harm the local companies of the country issuing them though. So that's the curse.
     
  6. dianethare

    dianethare Senior Investor

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    All the information and lessons that one can never get in the confines of a classroom, i definitely need to digest that, pretty deep! Thank you Allison2021 and thank you again Leeroy_MY :)
     
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