If the banks aren't exposed then why were Citibank & JPMorgan down 5%+ at the lows? And the regional banks were higher so there is obviously risk.
What I do not like is that the most civilized nations over the world start to grab Russian money. The effect is just the opposite. All the bank asset freeze triggers cross-default. If one bank does not pay the other, the other won't pay the rest. Then a lot of businesses default. Also, a lot of US and European investments on Russian mutual funds, ETFs and hedge funds. West investments in Russian assets are far greater than Russian investment in Western assets. Russia is in several of the index funds too. Also global equity index and a lot more. All of those investments and related derivatives are effected. We'll see a lot of news on this.
Not if the government does not bail out those hedge funds. This Russia-Ukraine conflict has been going on for quite some time now. These hedge funds had plenty of time to pull out and didn't, that's not the government or the taxpayer's problem.
Hege Funds had plenty of time to watch Asia fall to the exact same mechanism that caused Russia to default in the same way. Even Soros said long ahead that there was a risk Russia would go down the same way. And yet... all these geniuses on Wall Street STILL over-leveraged to the tits on NAKED OPTIONS gambling that it wouldn't/couldn't happen. (Because this time it's different, ehh?) It did happen again, and they still got their millions of $ in bonuses, yet the Tax Payer had to foot the bill. Now you're telling us AGAIN that 'This time it's different'.
US Pension funds, including Calpers and California State Teachers both were heavily invested in Russia. They lost a huge chunk of their monies for their retirees and future retirees benefits. Everything is interlinked now. There is even talk including, among RINOs like Lindsey Graham to go full nuclear and cut off Russia oil and natural gas. Oil went up about $4 today, how high will oil go without Russia's output? I read an article that said Russian oil accounts for 10-14% of the total oil output in the oil market. These idiots, including Joe Biden and his fellow Democrats want inflation to go thru the roof and it will.
You know, I'm getting flashbacks again when Amaranth was trying to keep their commodities trading a secret from those pension funds, as many of them were weary of risky commodity traders for very good reason. They have a track record of huge losses or blowing up. A year later, Amaranth blew up! Doh! Who saw THAT coming?
High for a while, until additional production ramps up. Fracking becomes quite lucrative at $120/barrel. With Russia, though, their "rainy day fund" is already mostly (I think the figure I have seen is 60%-70%) inaccessible to them. Take away oil and gas sales and their economy craters to zero.
I do not see where additional production will come from with Joe Biden's war on US oil companies. So, they just sit on their hands and wait. Oil prices are going up, US oil producers have no incentive to add production volume. Inflation is going sky high in the US and Europe too. China will get its oil though. It just signed an agreement with Russia to provide its energy needs.
Wow even Turkey - that revels in being contrarians - just closed the Bosphorus and Dardanelles straits to Russia.
I wake up this morning, oil well over 100 a barrel. Good... Hope it goes even higher and the woke Biden supporters pay up the ass for the way they tried to screw over their own producers as well as screw over the Canadians who tried to help them.