How does financial crisis affect you?

#1
Our friend Msr (on another thread) asked to comment this artice

http://www.telegraph.co.uk/opinion/main.jhtml?xml=/opinion/2008/10/01/do0105.xml

Unfortunately, the thread was holed. So I try to repeat my answer (before this thread is holed - joke)

British reporters, normally a scruffy bunch, are generally not welcome at The Most [Bridge], one of Moscow's most elite nightclubs. Then again, few people are. As an establishment that prides itself on having perhaps the city's strictest door policy, the club employs burly security guards in pinstripe suits to keep out undesirables.

It is an art that Muscovites call Feis Kontrol [face control]
Never have been is this 'club' - likely a nest of criminals, thives and expensive prostitutes.

Like the rest of us, Russia has been buffeted by the financial crisis. Yet Moscow has suffered more than most. Since reaching a record high in May, the country's stock market has been the world's worst performing in the past quarter, losing nearly 60 per cent of its value - £400 billion - at one point.
Tycoons lost big money? Who cares?

Few will admit just how much they have lost. One who will is Alexander Lebedev, one of the original oligarchs who Forbes magazine ranked the world's 358th richest man, with an estimated fortune of £1.7 billion.

A banking magnate who owns 30 per cent of Aeroflot, he told me he is worth nearly two thirds less than he was a month ago.
By the way, mr.Lebedev tries to create a new political party along with former pres.Gorbachev. Interesting pair - a thief and an idiot.

Ordinary Russians could suffer, too. Already two banks have had to be bailed out by the government...
They are small, insignificant investment banks. I keep my modest savings in different reliable banks (with 11% - 12.5% interest rate). Sums below $8000 would be 100% compensated and additionally $20000 would be 90% compensated in the case of bankrupcy.

For ordinary Russians already struggling with double-digit inflation, that conjures up too many uncomfortable images of the rouble crash of 1998. As the rouble falls steeply, some are putting their money under their beds.
From formal point of view 11-12% inflation is 2-digit. But now the Rouble is stable against Euro & Dollar basket.

The question now is whether Mr Putin will adopt a more moderate course, or up the ante by becoming even more hard-line. By reinforcing the idea that Russia is under threat from Western invasion, he may bank on ordinary Russians rallying round him at a time of national crisis.

A ridiculous drill in St Petersburg on Monday, in which residents were subjected to a simulated invasion complete with air raid sirens, suggests that he is bent on the latter course.
St.Petersburg is being affected by frequent floods (though not so severe as in New Orleans). Emergency situation was simulated to test all services and systems involved.

That, however, will not set Russia on the road to economic recovery. As Mr Lebedev says, the aggressive rhetoric, increased defence spending and threatening behaviour is going to scare no one other than much needed foreign investors.
One of the leaders of still-born political party is too well known thief to be regarded seriously.
 
#2
WTF has that got to do with the thread title? Been on the vodka?
 
#3
In answer to your question..................................so far it hasn't, touch wood
 
#5
thegimp said:
WTF has that got to do with the thread title? Been on the vodka?
I have to admitt that sometimes indeed I drink but not now.

In short, personally I don't feel any influence of global financial crisis and you?
 
#6
thegimp said:
In answer to your question..................................so far it hasn't, touch wood
Thanks. And I knock wood.
 
#8
So long as food prices don't go up too much, Familie von Carrots will be fine. We live in a flat I bought from my sister in the early 90s and a fair whack of the mortgage is already paid; we're on the second floor, so get heat rising from below and a nice buffer above to keep our fuel bills down; and we're both fanatically economical about food and groceries (i.e. tight as a gnat's chuff). Unless our savings get wiped out there's no reason to suggest we won't weather this well. If our savings do get wiped, everyone else's likely to be further up shit creek than we'll be since we've never been ones to take unnecessary gambles with our future and they're mostly in NS&I or National Central Banks. Shitty return by comparison, but at least I know it'll still be there when I need it.
 
#9
I could lose my job! Not a good time to be working in the financial sector.
 
#10
dhobi_walla said:
KGB_resident said:
I have to admitt that sometimes indeed I drink but not now.
Are you sure? We're all friends here so don't be afraid.

As for me, no. Mortagage has gone up £20. Big deal.
Of course I tried to type admit

The crisis is global and I fear it is only its start. What could follow? Very low oil (and gas) prices, low prices on metals and wood that would affect ordinary Russians.
 
#11
KGB_resident said:
They are small, insignificant investment banks. I keep my modest savings in different reliable banks (with 11% - 12.5% interest rate). Sums below $8000 would be 100% compensated and additionally $20000 would be 90% compensated in the case of bankrupcy.
To answer your question first of all - me personally not at all. I work abroad, get paid well and don't pay tax on that. My UK business gets taxed as does my Military pension but I can live with that as one does not rely on the Stock Markets or Banks and the other is paid for by HMG.

My other point though is - those interest rates you quote cannot possibly be sustainable. Where is the money coming from to finance them? The answer is, I suspect, the State. In which case there are going to be a lot more "perceived external threats" to keep the rabbles' mind off how sh1t life is about to become.

As an individual can I put in cash to this nice little earner ? 8) Although I conced that collecting it via a logging camp in the Kolyma Mountains when it comes to withdrawing the loot my be a bit of a deterrence.
 
#12
Not so far for me either. I'm 1 year into a 3-year fixed rate mortgage, which is a bit less than 50% of the current value of my house, so unless things really go t1ts up, I shouldn't have too much trouble finding another deal when the time comes.

Got no credit cards or loans, and I'm fairly substantially in credit with my gas & electric (monthly DDs).

Food's getting a bit expensive, so I'm currently sorting out an allotment (fed up with the chemical-laden cr@p from the supermarkets, anyway). And there are plenty of rabbits in the fields nearby.

On the downside, I've got absolutely nothing in the way of savings, so no cushion for if things do get bad.
 
#13
rickshaw-major said:
KGB_resident said:
They are small, insignificant investment banks. I keep my modest savings in different reliable banks (with 11% - 12.5% interest rate). Sums below $8000 would be 100% compensated and additionally $20000 would be 90% compensated in the case of bankrupcy.
To answer your question first of all - me personally not at all. I work abroad, get paid well and don't pay tax on that. My UK business gets taxed as does my Military pension but I can live with that as one does not rely on the Stock Markets or Banks and the other is paid for by HMG.

My other point though is - those interest rates you quote cannot possibly be sustainable. Where is the money coming from to finance them?
No, relatively high interest rates (11-12%) for 1 year deposits are being proposed by commercial private banks.

There is unique situation in Russia. The Rouble is very stable toward Dollar, Euro, Pound and meanwhile interest rates on deposits are high enough. It is because of huge wave of consumerism. The Russians borrow money in banks to buy literally everything. Now Russia becomes the biggest car market in Europe. Btw, this month I buy a new car (though inexpensive - $22000) and give my 2-yo one to my son.
 
#14
[/quote]

No, relatively high interest rates (11-12%) for 1 year deposits are being proposed by commercial private banks.

There is unique situation in Russia. The Rouble is very stable toward Dollar, Euro, Pound and meanwhile interest rates on deposits are high enough. It is because of huge wave of consumerism. The Russians borrow money in banks to buy literally everything. Now Russia becomes the biggest car market in Europe. Btw, this month I buy a new car (though inexpensive - $22000) and give my 2-yo one to my son.[/quote]
I wouldn't brag about borrowing money. That's the reason why the western banks are in the state they are in. If the Russians are borrowing heavily to pay for everything then they may find the credit crunch comes to visit in a much more catastrophic way than it has in the west.
 
#15
No, relatively high interest rates (11-12%) for 1 year deposits are being proposed by commercial private banks.

There is unique situation in Russia. The Rouble is very stable toward Dollar, Euro, Pound and meanwhile interest rates on deposits are high enough. It is because of huge wave of consumerism. The Russians borrow money in banks to buy literally everything. Now Russia becomes the biggest car market in Europe. Btw, this month I buy a new car (though inexpensive - $22000) and give my 2-yo one to my son.[/quote]
I wouldn't brag about borrowing money. That's the reason why the western banks are in the state they are in. If the Russians are borrowing heavily to pay for everything then they may find the credit crunch comes to visit in a much more catastrophic way than it has in the west.[/quote]

And there's the rub! The money has to be coming from somewhere and when is all goes t1ts up the Bank Rossiya will have to print more cash or provide Credits to support the private Banks. Where have you heard that story before? :(
 
#16
Both good and bad

It means the days of sensible people and plans are returning, the froth is disappearing and the flight to quality is accelerating Globally.

Over the last few months a number of our more leveraged partners have folded as their funding disappeared overnight leaving us with gaping holes to be urgently plugged. A nightmare to do at the last minute but thankfully that was months ago when there was still extra finance available, now it would be impossible. It also gave us a very timely heads up to get all of our houses in order which thankfully they now are. We are anticipating a 3-5 year period of short rations, with a couple of years on top of gradual upturn.

A very telling sign of how people think things are going to go is the amount of gold being bought that can be taken outside of the financial system i.e. coins and bars not in the usual form of gold trading accounts. This means that serious players believe that gold may be nationalised as it was in the 1930’s.
 
#17
blocksweat said:
No, relatively high interest rates (11-12%) for 1 year deposits are being proposed by commercial private banks.

There is unique situation in Russia. The Rouble is very stable toward Dollar, Euro, Pound and meanwhile interest rates on deposits are high enough. It is because of huge wave of consumerism. The Russians borrow money in banks to buy literally everything. Now Russia becomes the biggest car market in Europe. Btw, this month I buy a new car (though inexpensive - $22000) and give my 2-yo one to my son.
I wouldn't brag about borrowing money. That's the reason why the western banks are in the state they are in. If the Russians are borrowing heavily to pay for everything then they may find the credit crunch comes to visit in a much more catastrophic way than it has in the west.
Right. Personally I hate to borrow and many years don't borrow at all.
 

TheIronDuke

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#18
Paid the mortgage off a couple of years ago and we owe nowt worth talking about. Dropped £6.5k in Northern Rock shares but they were free to begin with. All in all - good. If you think this is a proper recession, try booking a long haul holiday over Christmas / New Year somewhere decent?

Alan Sugar said it in todays paper. We are paying for the mad antics of some spivs a few years ago when you could borrow for anything then leverage more. Fortunatley I resisted the temptation and am quietly smug at me mates in the clarts with Buy-To-Rent millstones. Hey, they were smug enough a couple of years ago.
 
#19
I have had to sack two of the maids,one of the cooks,and one of the chauffeurs.Harrod's now only deliver four times a week.I am also considering selling one of the Jet Rangers.May have to give up one of my seven annual holidays.Apart from that everything is fine.
 

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