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Strategies & Market Trends : Investment in Russia and Eastern Europe -- Ignore unavailable to you. Want to Upgrade?


To: Rob Shilling who wrote (624)9/4/1998 7:55:00 PM
From: Rob Shilling  Read Replies (3) | Respond to of 1301
 
O.K. here is my predictions about Russia:

1) The political situation gets resolved by the end of Monday

2) The banking crisis will be shorted lived but will contain a quick collapse of most of the smaller "hedge fund" banks. The larger banks that were in trouble have just been handled by the CB

3) The ruble will stabilize after Victor C. is voted in by the Duma

4) The ruble "limited emission" plus stabilization of the ruble after the government appoints Victor C. will quell any severe unrest

5) Thanks to a weaker ruble and higher oil prices, there will be a current account surplus possibly showing up in September's numbers

6) Tax collection will improve by January

7) A few months after all of the "economic dictatorship" measures have been enacted the ruble will settle at a rate of 10-13 per dollar

8) Russian GDP will be positive in 1999

9) And of course, Russian stocks will rise.



To: Rob Shilling who wrote (624)9/4/1998 7:56:00 PM
From: John Liu  Respond to of 1301
 
Actually I think the IMF and/or the US sort of in a way caused the current problems by bailing out the banks/Mexico several years back. This cause international banks/lenders to be more risky to whom they loaned their money to since they think that worse come to worse the IMF will always be there to return the money and in the mean time they can earn 100-200% interest.

John