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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Andeveron who wrote (26197)	9/2/1998 9:29:00 AM
From: Philipp	Read Replies (1) \| Respond to of 94695

Hi, That's too sanguine a view to assess the Russian economic situation. Billions of dollars are being funneled to Russia with no returns in sight Yes, it is many billions, but anyone who invested in Russia knew the risk and most of it has been written off a long time ago. I don't think that it can cause a serious banking crisis in Europe (Germany in particular), the average bank customer is and has been paying the bill. I also don't agree that we should continue throwing good money after bad. But there are possibly other serious economical consequences for Europe: most significantly perhaps another emigration wave. The European economies are not in a position to handle that easily; there is record unemployment and the welfare systems are under pressure already. I didn't want to belittle the economical consequences, though Asia is far more serious in that respect, just wanted to emphasize that the political dimension is where the real risk is. By the way, Yeltsin has no longer any support in the population (almost as bad as Gorbachev). Regards, Phil