Putin Beaten by Bankers:What It Means for Oil By Briton Ryle: You know its usually about money. All this past weekend, Vladimir Putin rattled the saber, talking tough about protecting Russians in the suddenly anarchist Crimean Peninsula. He got Russian Parliament to declare he had the right to invade Ukraine, mobilized troops for war-game exercises on the Ukrainian border, and accused America and Europe of fomenting rebellion in Ukraine. All weekend, U.S. cried: Putin outsmarted us again; Putin is stronger than Obama. Then the financial markets opened up Monday. Russias stock market crashed, falling more than 10% in one session. Russias currency plunged, and the central bank had to raise interest rates to protect it. Right on cue, Putin changed his stance. He sent his troops at the Ukrainian border back to barracks. He said an invasion, which looked inevitable over the weekend, was only a last resort. We arent going to fight the Ukraine people. It should be obvious that the world of finance did what no amount of diplomacy or military threat could have accomplished so quickly. The markets didnt call Putins bluff. Investors acted as if his threat would absolutely be carried out. And they clearly indicated they dont want any part of it. That was enough to change Putins mind.
Posted on: Tue, 11 Mar 2014 08:36:19 +0000
Trending Topics
Recently Viewed Topics
© 2015