Cutting Russia off SWIFT - Germany and Italy now on board

Discussion in 'Economics' started by terr, Feb 25, 2022.

  1. Aisone

    Aisone

    I love it when people try to explain what the market did based on the the latest popular headlines and narratives. Yes it's a volatile (and very disturbing) situation in Ukraine, but yes, new lows were going to be reached regardless (and lower lows were even reached after that), but it goes deeper into market dynamics and movement over time, and I can pretty confidently say it had nothing to do with overnight headlines, just something that had been in process for a while. Just because a certain volatility coincides with national or international events, I wouldn't assume headlines are the cause of volatility.

    Case and point, this volatility is very connected to the volatility that bottomed out on 1/24, and that had nothing to do with Ukraine. But that's another story.

    I also said I'm bearish long term but 'crave' the buy opportunities this environment creates, and I was spot on there as well.

    As far as headline-demystifiers are concerned, if anyone wants to EXPLAIN what happened based on headlines, I would just say, since one believes their understanding is so keen, stop explaining and start predicting, beginning with the short term and with specifics. Otherwise its just useless posturing for one to feel smart and relevant. (and respect to anyone who is spot on in their concrete predictions.)
     
    Last edited: Feb 26, 2022
    #51     Feb 26, 2022
    formikatrading and terzioglu like this.
  2. terr

    terr

    Polish PM says Orban told him Hungary now supports disconnecting Russia from SWIFT. They were one of the main holdouts in the EU.

    I saw that Cyprus is on board. Germany has dropped its opposition.

    Seems like the only one left is Biden.
     
    #52     Feb 26, 2022
    d08 and NoahA like this.
  3. d08

    d08

    I heard exactly the opposite, there's supplies to last the whole year.
     
    #53     Feb 26, 2022
  4. d08

    d08

    Exactly.

    Seeing how some here talk about "premium" for gas transportation, that's a minor issue consider what is actually happening at this very moment. But it's easy to theorise sitting somewhere in US or Canada in a quiet location. When just some hours drive away people are being blown to pieces at regular intervals, it's a different story.

    There's no reason to overreact and make bad decisions but the goal is clear and getting hung up on minuscule issues, there's just no time for that.

    If Russia controls Ukraine then things are even worse as then many commodities prices can be dictated by Kremlin. I'm not sure many here realise what's at stake.
     
    #54     Feb 26, 2022
    NoahA likes this.
  5. Russia will be cut from SWIFT. That was on the cards. The countries that are reluctant to support this measure are faking opposition because of their own citizens. This measure will hurt mostly EU, much less Russia and would greatly benefit USA.
     
    #55     Feb 26, 2022
  6. smallfil

    smallfil

    It is the spike in oil prices they are trying to avoid as well as being cut from their natural gas supplies coming from Russia.
     
    #56     Feb 26, 2022
  7. virtusa

    virtusa

    The real numbers are not communicated for strategic reasons. At the actual prices several producers are standing in line to sell gas. The fact that Germany joins the rest in the SWIFT ban, indicates that they have found a solution. Putin can sell the gas to China. What he never tells is that the price the get from the chinese is so low that he hardly makes any money. So Putin is losing billions. And some of his oligarch friends lose a lot too.
     
    #57     Feb 26, 2022
    Nobert and d08 like this.
  8. d08

    d08

    Chinese are just playing Russians for maximum benefit. All their dealings are very poor for Russia. There's no-one to buy Russian gas at the delivery points. They can of course ship it across the world to Iran and India but that's financially stupid.
     
    #58     Feb 26, 2022
    Nobert likes this.
  9. virtusa

    virtusa

  10. There is quite a bit of wisdom in your post. The geopolitical stuff can sometimes just "accelerate the cycles" but otherwise they don't change the bigger picture, as you have indicated.


     
    #60     Feb 27, 2022
    engineering likes this.