Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (24232)	11/13/2009 3:23:54 PM
From: Real Man	Read Replies (1) \| Respond to of 71463

No it didn't. Soviet Union did not have a stock market. During 1998 currency crisis the stock market existed, and it crashed, from something like 700 to something like 100. By July 1999 the index was back at 800 (in rubles), exceeding 1997 high. By 2000 it was at 1500. In 2006 RTS index reached 10,000. The 00-s was a decade of rapid growth, though, as opposed to the early 90-s, when the real GDP got cut in half. The RTS went up 5-fold even in dollars. The comparison with the US is not particularly valid, but the point is that the crisis here is not over, because of major structural deficiencies that exist in the economy. The worst should come during reform, as these structural issues are resolved. The true boom will come after that. Printing does not resolve structural issues, it may be contributing to these instead. The bloated shadow banking system that was pumped with money, not reformed, can't take us out of the economic crisis, really an issue of US consuming too much and producing too little.