4 ms·
Ohh gee, what are the securities of the nation that threatens the world with nuclear war are worth for the plethora of buyers clamoring to invest? I suspect th
by VincentEvans 5y ago
Ohh gee, what are the securities of the nation that threatens the world with nuclear war are worth for the plethora of buyers clamoring to invest?
I suspect they are worth as much as Russian promises of honoring their treaties, contracts, and obligations.
- Uehreka 5y agoNot invest, divest. They’re trying to stop Western funds from selling off their interest in Russian companies.
- londons_explore 5y agoI'll happily buy them all for 1% of the face value last week.
- Jabbles 5y agoWhilst 1% is obviously not the price the market currently values them at, do remember that many Russian stocks went to 0% in 1998. Buying at 1% would still have meant you lost all your money. https://en.wikipedia.org/wiki/1998_Russian_financial_crisis https://en.wikipedia.org/wiki/1998_Russian_financial_crisis
- tenpies 5y agoIf it weren't for a moral consideration and a very long tail risk of an involuntary shareholder meet up at a prisoner camp as the West's decision-making is further compromised by emotion, there are company that everyone should be lining up to buy. The book value of many of these resource and agriculture companies is very far from zero. Even with the West's self-destructive energy policies and "let them eat inflation" approach to monetary policy, the continued long-term operation of these companies should be of interest to anyone that likes avoiding mass scale social unrest. I really wonder if 2 years from now when there's famine and and people are huddling at a community warming centre in the dead of winter because private heating is a luxury good, people will buy the "it was Putin's fault" and "it's worth it for the environment".
- pevey 5y agoFor those who don't remember or weren't alive, Long-Term Capital Management was the whale hedge fund of the day and had on staff at least one Nobel laureate, Robert Merton. They essentially bought into the "let's buy at a discount" plan, too. They were leveraged on a lot of Russian debt. Russia decided to simply default and not pay anything. No restructuring. And LCTM's resulting crash and burn is now a financial history lesson.
- VincentEvans 5y agoThats a good lesson. Russia does not respect the West and liberalism and considers it weak and only useful in as much as it can be used for own gain. This is basically what the official government controlled media says all the time.
- deleted 5y ago[deleted]
- avianlyric 5y agoFor someone to sell, there needs to be someone to buy. GP is saying that nobody sane is gonna buy these securities, so divesting isn’t really possible, and thus blocking divestiture is kinda meaningless. You’re blocking people from doing something they can’t do anyway.
- wiredone 5y agoMy guess is that given Russias energy reserves (they won’t go away due to war) that there’d be a non zero number of people willing to buy the bounce on that at a minimum.
- nine_zeros 5y agoThere is always a buyer of distressed assets. Always. It may not seem like a wise investment to the average HNer but there is an entire world of investing other people's money on different kinds of assets. And Russia has a lot of desirable assets that could reap dividends after the war is over.
- hsbauauvhabzb 5y agoWhat are the long term implications? I’m not in finance but presumably a Russia could order a block on assets when they’re tanking, which would make me hesitant to buy if / when things smooth over.