Chapter 461 A Tale of Two Cities (Bug Fix): From Wall Street to Moscow
These past few days have been pretty good in the US.
As soon as Soros was admitted to the ICU, international short sellers collectively quieted down.
Asian short sellers have stopped attacking the United States, and Wall Street short sellers have also withdrawn from Hong Kong.
The Hang Seng Index rebounded, and the Dow Jones Industrial Average also surged.
The surviving shareholders clutched their hearts, thanking God they hadn't impulsively jumped.
As it turns out, in the end, the competition in life is about who lives the longest. As long as you survive, you'll eventually win.
Therefore, Soros truly deserved to be shot. After all, his sacrifice brought happiness to all humanity. Even if he couldn't withstand the consequences and died, it would still be a worthwhile death.
So, what kind of shock did Russia's announcement on the evening of the 14th, when it devalued the ruble by 15%, cause in the United States?
No, there really isn't.
It's not that the time is too late and the US market can't react in time. In fact, due to the time difference, what's evening in Moscow is noon in Washington, giving the US financial markets a whole afternoon to process the information.
But their reaction was really nothing.
Zhou Liang found it unbelievable, so he contacted his senior from his senior year who worked at an investment bank on Wall Street through his mentor, wanting to ask what the Americans were planning to do.
For this reason, he specially invited someone to a restaurant for an authentic Sichuan meal, the kind that hadn't been modified, because the chef had just been smuggled over from Sichuan.
After a couple of drinks, his senior asked him directly why he came to America. Was he planning to stay and find a job? He said he could help recommend someone. The job market was good right now, with plenty of opportunities.
Zhou Liang shook his head: "No, I'm doing quite well in China, and my boss trusts me a lot. I came here to help my boss buy some American tech stocks, small ones are fine, as long as they have good prospects. Senior brother, can you give me some advice? I'm starting to feel confused about American stocks. The ruble has fallen, depreciated by 15%, but why isn't the market reacting at all?"
"What kind of reaction do you want?" The senior waved his hand. "Let me tell you the truth, if you want to buy stocks, just buy now. Don't expect to buy at the bottom anymore. It won't fall any further. The United States is not Southeast Asia; the economic situation is completely different."
Zhou Liang pressed on, asking, "Won't the ruble's devaluation have any impact? Won't foreign capital flow out?"
Emerging markets primarily attract investors with high interest rates. If there's no profit to be made, who would come?
The senior student shook his head: "Some people will definitely run, but it shouldn't be a mass exodus. Let me put it this way, no one wants to stimulate the market right now; a smooth transition is best."
The two-week plunge in US stocks has left everyone stunned.
The elites on Wall Street suddenly realized something: the global village is not just a simple information concept, nor does it belong solely to Silicon Valley; it also belongs to Wall Street.
The US dollar and the US system have dominated the era of globalization, but they will also suffer the consequences.
With the Asian economy still sluggish, people are really hesitant to take any risks or take any actions to stimulate the market.
As he drank, he sighed, "The Russians are still the Russians, even a starved camel is bigger than a horse, they have deep pockets. After such a long period of chaos, things have stabilized now, and they should be able to gradually stabilize things further. Besides, look at them, they have a lot of smart people, they know how to choose their timing. This new wave of government officials has learned from their mistakes, they're not rushing into reforms recklessly, they're quite pragmatic."
Zhou Liang tentatively asked, "So you mean this wave of stock market crash in the United States is completely over?"
"Of course it's over. Russia isn't the Soviet Union, let me put it this way." The senior took a sip of his drink, "There's no safer place to invest than the United States. US Treasury bonds are always the safest. Just wait and see, all the money and talent in the world will flock to the United States. Hey, why don't you come over? There are better prospects for development in the United States. There are still too few Chinese people in the United States."
Zhou Liang laughed: "Aren't there enough Chinese people in America? People are already calling it the Yellow Peril."
While they were talking, the waiter came over to serve them their food.
Zhou Liang even pointed at them with a smile: "Look, aren't these all there? You still think there aren't enough people?"
The senior student smiled but didn't speak. Only after everyone had left did he shake his head and whisper, "What's the use of all this? They're smuggled in, they can't even get legal status, they'll always be doing the lowest-paying jobs, they'll never amount to anything. We need to learn from the Indians. Look at the tech companies right now, aren't they the most promising? Silicon Valley is booming, and your boss is even buying a tech company. And look at those tech companies, aren't they full of Indians? I think the Indians are really smart, with their 'fewer children, more trees' philosophy. They just have children, have as many as they can, and then they all go their separate ways. Since the US and Canada don't want to have children, and Europeans don't want to have children either, the land becomes available, and then it all goes to them, right?"
Zhou Liang was stunned. After thinking for a while, he shook his head: "That's different. India has a caste system with clear hierarchy. Even if we occupy new territory, we'll still have to listen to India. Our Chinese civilization values kings and nobles. Are we born with a special destiny? Who submits to whom? If we occupy America, we'll definitely end up fighting with our own country. Look at Singapore, how could they possibly listen to their own country?"
The senior student was so startled that the spoon he was using to scoop soup fell back into the bowl with a "clatter," splashing the tofu soup everywhere.
He looked at Zhou Liang in disbelief: "Wow, you've got big ambitions, you even think about taking over America."
Zhou Liang said seriously, "I don't think Americans are that smart. You see, they should have a lot of financial knowledge, it should be common sense for them, right? But look at the US stock market, it just fell like that, and it fell for half a month. Isn't that just being brainless? If it were in our country, we would definitely not be so confused."
Unfortunately, my senior brother didn't buy into that: "Stop bragging. You have the nerve to rush me, but I'm too embarrassed to listen. There are plenty of smart people in China. How could anyone with a brain believe that Chundu ham sausages are made from human flesh from crematoriums?"
The "dancing sausage" was incredibly popular back then. But this rumor started circulating in 1994, and when he returned to China for vacation this summer, he found that Chundu sausages were no longer available in the market.
Zhou Liang was speechless and could only awkwardly try to make amends: "Most people in our country are farmers who have never been out of the country in their lives. They have little experience and are easily fooled, so they just believe it to be true."
My senior colleague was already slurring his words, shaking his head and pointing at him, saying, "You're going too far! I remember you're from the countryside too. How can you wrongly accuse people from the countryside like that? Putting aside everything else, how much did a Chundu ham sausage cost in 1994? One yuan and one mao. How much was a rural person's annual income? How many people could afford to eat ham sausage? A few ham sausages could buy a pound of pork. At that time, the main market for ham sausages was in the city. How can you blame rural people for being ignorant? My mother was a teacher, she taught her whole life, and she still believes this kind of nonsense."
Zhou Liang's face turned bright red, and he could only repeatedly clasp his hands in apology, saying, "I was wrong."
“It’s all the same.” The senior apprentice sighed. “After working in this line of work for a long time, you’ll find that no one is any smarter than anyone else. Anyone can be fooled. This is the place where your eyes are most blind, your nose is most blocked, and you are most susceptible to emotional contagion.”
While drinking and chatting, it was already past 11 p.m. when Zhou Liang finally returned to the hotel after dropping his senior brother off.
He quickly made an international call to his boss to report on Wall Street's reaction, which he had learned from his senior colleague earlier that day.
The main reason for this rush is to ask the boss for instructions.
Should we continue to be bearish on US stocks?
You've just made money, don't let it end up being lost.
Wang Xiao had just finished breakfast and was about to leave when she received the phone call. She simply hummed in response, followed by, "Continue."
Zhou Liang was truly baffled. He simply couldn't understand why the US market would treat the ruble's decline so coldly, as if it hadn't happened at all. What reason could there be for the US stock market to continue falling?
While agreeing with "oh, oh," he glanced at the latest evening paper in his hand, strongly suspecting that the Wall Street short sellers had once again acted recklessly, provoking the dissatisfaction of the Asian revenge organization, which would then take further action.
Why did he say that the other person was courting death?
It's because this article written by a Wall Street financial analyst in the newspaper was really sarcastic and inappropriate.
His analysis suggests that the reason why US stocks rebounded quickly after the sharp decline is because the US economy is generally healthy and thriving. The temporary setbacks have actually made investors see the healthy nature of the market and given them more confidence in it.
In stark contrast, markets that expose more problems during crises are those where, even after those who burst the bubble leave, the bubble continues to be squeezed out by the market until it regains its true market value.
To publish such an article right now is to mock the Asian market: the reason you're still barely surviving is entirely your own fault.
It's the kind of dog that smacks its lips while eating meat, and can't keep a shred of fat inside. It'll start acting up after a few good days, so it's no wonder it gets hated and beaten.
However, he seriously doubted whether the Asian Revenge Organization could generate the same power as before if it were to make a comeback.
The United States has the most sophisticated financial market in the world, and its ability to respond is extremely strong. Last time, it was caught off guard, so it panicked and became a laughing stock for the whole world.
This time they will definitely learn from their mistakes and will not let the short sellers succeed so easily.
Did the boss not expect this? Or did she have another plan?
Zhou Liang racked his brains until his head ached, but he still couldn't figure it out.
Wang Xiao hung up the phone and turned to Ivanov, saying, "The US market should be able to hold up this weekend."
So they postponed their plans to avoid a sudden outbreak that could cause the ruble to become unstable due to market panic.
She noticed his collar was a little crooked, reached out and straightened it, casually asking, "Did you bring all your clothes?"
Yes, very unfortunate.
Although Russia has had a two-day weekend since the Soviet era, the greater the power a person wields, the greater the responsibility they must bear.
Not only will Ivanov have to work overtime this weekend, but he won't leave the White House until Russia has completely weathered this crisis.
Regardless of the final outcome, at least he should make his stance clear.
The assistant quickly replied, "Everything is packed and ready."
When Miss Wang is not in Moscow, their Prime Minister is also stationed at the White House.
Ivanov lowered his head, rubbed his forehead against hers, and said in a muffled voice, "Can I call you then?"
Although no one requested it, and even though people from the Kremlin and the White House repeatedly invited her, Wang would absolutely not set foot in the power centers of these two Russian Federations. This was an unspoken understanding among everyone.
But this also means that he will not see the king for a long time.
“Okay.” Wang Xiao raised her hands and cupped his face in her hands. “I will stay at the container market. You can call me anytime.”
She could no longer stay in the villa and hide away in her small building; she had to go to the container market to take charge.
In this era, when faced with natural disasters or man-made calamities, the top boss definitely has to step in and coordinate. Otherwise, simply following the original rules and regulations would be too inefficient and prone to causing chaos.
And now, no one but her can play the role of this big boss.
Because the real operating principles of business, just like financial investment, are not really about rules or anything like that, but rather about two words—trust.
As long as trust remains, even the worst situation can be salvaged.
The first thing Ivanov did at the White House today was to try to stabilize investors' trust in the Russian government.
He had to convince everyone that there were no problems with the Russian economy, and that the devaluation of the ruble was part of a planned economic reform that had been in the works for some time, and that the decision was simply being made at the right time.
But the reporters, who had waited all night, were not going to let him off easily, and their questions were getting sharper and sharper.
Some people have asked why the news of the ruble's devaluation was released on Friday night, after the Russian stock market had closed. Was it to prevent people from selling their rubles on the market, forcing them to wait until Monday if they were in a hurry?
Ivanov looked extremely sincere. Although he had a pair of captivating eyes, he was probably too handsome, so he didn't seem very intelligent. Instead, he had an innocent air about him that couldn't hide his true thoughts.
He looked at the reporter with a puzzled expression: "Apart from Friday night, no other time is suitable. Everyone has to go to work or school during the week, and only on weekends can everyone have enough time to shop. Although the government has repeatedly emphasized that there is no need for panic buying or hoarding, we fully understand everyone's feelings. The reason we didn't announce it on the weekend is because we want to leave one night for everyone to think about what is the most suitable thing to buy if they really want to panic buy. This way, they can plan ahead before taking action and avoid wasting the money they have worked so hard to earn."
His beautiful, almond-shaped eyes stared intently at the reporter. "As for the market reaction, due to the time difference, many markets were still open when we made the announcement. According to the feedback we received, the ruble devaluation did not cause severe market turmoil. On the contrary, many international financial experts believe that we have chosen an appropriate opportunity to promote the recovery of industrial and agricultural production in Russia, further deepen reforms, and regulate the market."
In short, the domestic people are satisfied, and the foreign investors have no objections; everyone is happy.
The reporters weren't planning on celebrating; they were there to uncover the truth.
"However, a 15% depreciation of the ruble would cause significant losses for investors, especially foreign investors who have invested in government bonds. How is the government considering this? Are there any subsequent compensation measures?"
This question is not very clever; in fact, it's a bit naive.
Ivanov replied with remarkable good temper: "Foreign investors can use dollar futures contracts to make up for their losses."
What are so-called US dollar futures contracts? They are a layer of insurance for foreign investors investing in Russia.
The ruble had been depreciating for many years. Even though the ruble exchange rate was forcibly stabilized in the second half of 1996, foreign investors, while liking Russian government short-term bonds, were also afraid that the ruble's depreciation would cause serious economic losses.
From a theoretical perspective, investing in bonds from any country is an investment activity. However, anyone who invests should be prepared that they may not only lose interest but also their principal.
The problem is that the Russian government is eager to attract foreign investment, so it provided risk guarantees. The central bank approved a financial instrument called a dollar futures contract.
Russian commercial banks provide financial compensation for potential ruble devaluation by charging investors a fee.
In other words, if the ruble does not depreciate, the banks receive these fees for free.
The ruble depreciated, and the resulting economic losses for government bond buyers were compensated by banks through dollar futures contracts.
Bond buyers bear no risk.
But one reporter pressed on to this point: "Does the bank have sufficient funds to make compensation? What if the bank can't afford to compensate?"
The scene immediately stirred, as this was the biggest concern for all GKO holders whose contracts had expired or were about to expire.
What happens to them if the banks can't pay out the money and go bankrupt?
Ivanov remained calm: "That just proves they're a bad bank, an untrustworthy bank. If they don't have enough reserves, why would they issue dollar futures? It's not like it's free; they're being paid for it."
The reporters were instantly in an uproar.
What does this mean?
Ivanov remained unhurried: "If any bank is unable to pay, then the government will take over the bank, nationalize it, and the government will be responsible for compensating for this portion of the dollar futures."
The uproar at the scene grew even louder.
Russia has been pushing for privatization, so why is it now nationalizing banks?
Ivanov smiled broadly: "However, the government has faith in the banks' strength; the banks issuing dollar futures are all major Russian banks. If they need assistance, the government will provide it. But the government will not interfere in the market arbitrarily."
What he said sounded reasonable, but reporters are there to find problems, so they naturally kept asking one question after another.
"Mr. Ivanov, I sense that the government is very optimistic about this ruble devaluation and believes it will not cause international investors to leave. But as far as we know, foreign capital has already left, for example, South Korean capital is withdrawing. How does the government plan to deal with the possibility of a large-scale exodus of foreign capital in the future?"
Ivanov nodded to the other party and said softly, "First of all, I must clarify something. As everyone knows, I am a businessman by trade and have invested both domestically and internationally. Based on my experience, I think I have some understanding of the mindset of investors—not all withdrawals are due to a lack of confidence in the market."
"For example, when I invest in building a branch factory, the head office may encounter financial difficulties. In order to ensure that the operation of the head office is not affected, I will choose to urgently withdraw the funds that are prepared to invest in building the branch factory to support the head office to return to normal. Only after the business is in good condition will I withdraw funds to build the branch factory."
“No investor can focus on just one market. They will consider their overall investment situation and make corresponding adjustments. For example, why do some people still sell their stocks during a rising market? It's not that the stock is performing poorly, but that the holders have their own considerations.”
Ivanov smiled. "However, on behalf of the Russian government, I urge all investors not to leave the market too easily. Just like last week when the US stock market was still falling, those who sold off their shares at a loss might be regretting it this week."
Laughter erupted from the audience.
The turmoil in the US stock market was like a movie. Now that the crisis has passed, looking back, the whole thing seems more bizarre than a Hollywood film.
The press conference lasted for an hour and a half. After answering all the questions from reporters, Ivanov shook hands with each of them, smiling as always, and thanked them for their concern for the Russian economy and their continued support for the government's work.
"If you have any questions, feel free to call me. My colleagues and I are happy to answer them anytime."
The reporters finally left, and Chubais came over from the next office, looking almost exhausted. He exclaimed to Ivanov, "God, you really pulled through."
He is considered one of the Russian government officials who is quite adept at dealing with the media, but he must admit that there are many times when he really doesn't want to face reporters.
Because he was faced with so many problems, he was unable to tell the truth and could only give perfunctory answers.
Ivanov pointed to his back, equally listless: "It's covered in sweat."
Chubais laughed out loud: "So why don't you let Miss Wang come over? If she's here, at least we'll have someone to talk to in case of any unexpected situation."
Ivanov shook his head in response: "She's a container market now, and she won't leave the market until things stabilize."
Chubais was at a loss for words and could only sigh, "Your sacrifices are truly immense."
Stabilizing such a large supply chain entity means consuming a lot of time, energy, and money, and incurring countless favors.
These will all have to be repaid later.
Ivanov glanced at him and said seriously, "Didn't you also make a great sacrifice? All of you made great sacrifices. Really, Anatoly, I was prepared to fight you to the death, it was either you or me. But I didn't expect that you would actually agree to the devaluation of the ruble, that you would actually agree."
Because of the sharp devaluation of the ruble in the later period of the Soviet Union and after its collapse, it became a typical symbol of economic collapse.
Therefore, stabilizing the ruble's exchange rate was a huge achievement for the reformist officials led by Chubais.
Even Chubais himself proudly said that he would have this achievement engraved on his tombstone.
Reformist officials are strongly opposed to the devaluation of the ruble.
Ivanov and Chubais nearly smashed the meeting table over this, pointing out that the other shouldn't have issued so many short-term government bonds while leading economic reforms.
The debt is now snowballing. If it's not cut off quickly, when the snowball starts to crush people, it will drag everyone down with it, and no one will be able to escape.
However, what ultimately convinced Chubais was that Taiwan abandoned its currency policy, which shifted all the pressure to Hong Kong, and Taiwan's economy was not significantly affected by the Asian financial crisis.
Chubais, drawing on his intuition as a liberal economist, directly compared Russia and South Korea.
Both countries currently have a large amount of short-term foreign debt, and South Korea has been stubbornly maintaining its exchange rate due to national pride and the fact that it is an election year.
Chubais felt that if Russia could preemptively devalue its currency before South Korea, the pressure would be much less.
Moreover, the increased pressure on banks caused by the ruble's devaluation is, in the long run, in Russia's national interest. The government can take this opportunity to weaken the power of oligarchs, allowing Russia to truly achieve free-market capitalism.
So although the process was painful, Chubais believed that he should endure the pain.
In the course of economic and social reforms, it is inevitable that some people will suffer greatly.
Ivanov said earnestly, "Anatol, my dear friend, I have always wanted to tell you, thank you, thank you all, the entire Russian people will be grateful to you."
"God!" Chubais finally broke down, forcing a bitter smile. "Ivan, don't be naive about gratitude. All we, you and I, and all of us will receive is hatred. Countless people will curse us and wish us to go to hell."
No sooner had he finished speaking than the White House Chief of Staff rushed over: "The bankers are here."
The ruble's one-time devaluation of 15% hit banks, which held large amounts of GKO and dollar futures contracts, the hardest hit group.
Last night, when the bankers saw the news on the news, it was like the sky had fallen. They frantically tried to get explanations from the Kremlin and the White House.
However, at that time, everyone had already left work.
Unless Russia experiences a massive catastrophe, the Kremlin president will absolutely not pay any attention to them; they won't even get a chance to meet him.
From a certain perspective, senior White House officials should be much easier to meet than the president, and they have interacted quite often, so there's at least some mutual respect between them.
But this time the White House took an unusually tough stance, and Ivanov, who is usually good-natured, stopped answering anyone's calls after returning home.
Prime Minister Chernomyrdin was willing to talk to them, but unfortunately he was a notorious opportunist; his consistent approach was to make promises to everyone, and then it was as if he had made no promises to anyone at all.
The other First Deputy Prime Minister, Soskovets, focuses mainly on practical matters and doesn't concern himself much with finance. Even when he answers the phone, he only emphasizes that Russia must revitalize its industry and agriculture.
As for Chubais, who had been acting as a liaison between the Kremlin and the White House, he simply disappeared a couple of days ago, and no one has seen him.
So the bankers, who had spent the night at the Sparrow Hills Club and whose eyes were swollen from exhaustion, and then waited painfully for nearly two hours at the White House, strangely breathed a sigh of relief.
Because in a sense, Chubais was the government official they were most familiar with. He was the one who presided over the privatization auction. Later, because of the presidential election, they became colleagues in a practical sense and fought side by side for half a year.
But Chubais didn't like their comfort; the time he spent working for oligarchs during the presidential election had become a dark chapter in his life.
These people paid him, so they treated him as their employee and assumed he would be employed by them indefinitely.
This foolish arrogance severely damaged his self-esteem.
He thought he had been too lenient with them. At the time, Miss Wang, a campaign PR staff member who also worked at the campaign foundation and earned the same $10,000 a month as him, was not treated as a subordinate by anyone.
He should be just as tough.
Chubais simply nodded, then sat down and remained silent.
Ignoring his cold attitude, the crowd eagerly pressed Ivanov, "Sir, how can the government go back on its word? Before issuing dollar futures, the government promised that the dollar would not depreciate!"
As they spoke, some people glanced at Chubais out of the corner of their eyes, hoping he would stand up and oppose the devaluation of the ruble.
Yes, it should stop. The announcement made last night can be completely rescinded this weekend, and all systems will return to normal by next Monday.
Ivanov asked in surprise, "Didn't the British government promise in 1992 that the pound wouldn't be devalued? All governments promise that their currencies won't be devalued. They mean it when they say it, and at that time they really didn't intend to devalue it. But the market is fluid, and matter itself is in motion. No government with a brain can stick to the old ways; it has to make adjustments based on the actual situation."
Ladimir Vinogradov, the head of the Reform Bank, roared, "Sir, don't spout such meaningless nonsense! The government can completely avoid devaluation! The Hong Kong dollar hasn't devalued, the renminbi hasn't devalued, so why should the ruble devalue? Are we inferior to them?"
Ivanov retorted without hesitation: "Because we have opened our foreign exchange market, completely opened it. China hasn't; China's market is closed. They are not afraid of attacks from the outside world."
Vinogradov's eyes were bloodshot: "You made the policy. Since you think your policy is wrong, why should we bear the consequences?"
Ivanov remained expressionless: "Please don't try to twist the facts. I didn't say our policy was wrong. I'm asking if there's been a problem with your implementation? Otherwise, why are you so agitated? Mr. Vinogradov, now you must tell me honestly: how many futures contracts does your Reform Bank hold? How much money do you need to pay out? Are you prepared?"
Vinogradov, like a trapped beast, said: "You launched a surprise attack; you have no regard for the life or death of the bank."
“That’s exactly what I wanted to say to you,” Ivanov said, his gaze sharp as a knife. “You’re taking advantage of the country by holding dollar futures without having prepared sufficient funds. You’re being irresponsible to your clients; you don’t care about their well-being at all. You don’t understand the basic principles of financial investment. Do you think you can leech off the country without taking any risks? Sir, if you can’t raise enough funds, the government will immediately take over the Reform Bank.”
Although everyone kept their positions well hidden and didn't disclose the details to outsiders, there was no doubt that Innovation Bank was the biggest gambler in dollar futures contracts.
Ivanov estimates that it currently holds no less than $1 billion in dollar futures.
After delivering his message, he turned to look at Potanin and Khodorkovsky. The former, who owned the United Export-Import Bank, and the latter, who owned Menatep Bank, were both major players in dollar futures contracts.
"Gentlemen, what about you? I believe you are capable people, and you should be able to resolve the dollar futures issue. After all, the ruble devaluation is not continuous; it is only a one-time devaluation of 15%, which means you only need to compensate clients for losses during the three to six-month contract period."
Ivanov smiled slightly. "Presumably, the management fees you collected should cover this part of the expenses. Even if they don't, you should be able to raise other funds to solve the problem. If your problem is really too serious, then rest assured, the government will not stand idly by, and the central bank will provide you with loans. However, you will need to use your most core assets—minerals and oil and gas fields—as collateral."
Khodorkovsky's face turned green. He knew that Ivanov's failure to acquire Yukos Oil Company in 1995 had left the Deputy Prime Minister with a grudge, and he was still keeping an eye on the oil company to this day.
He emphasized with a stern face: "We can use banks as collateral to obtain loans from the central bank. Banks are banks, and oil companies are oil companies; they should not be confused. Otherwise, it will cause chaos in financial management."
Ivanov shook his head: "Mr. Khodorkovsky, we are all businessmen, so you don't need to fool me. Your bank's equity structure is so complicated that even the large Western financial institutions that lend to you, with all their experience, can't figure out who really calls the shots in your bank. The government doesn't have the time or energy to argue with you about these things, so we've stepped forward. We only recognize what we can see and understand clearly."
Only by securing hard currencies such as minerals, oil, and natural gas can the government have the confidence to raise more funds to weather this self-inflicted crisis.
As for whether anyone will go bankrupt in the process? Yes, it is inevitable; in free capitalism, some people will go bankrupt.
Russia also needs such bankruptcies to regulate the entire market.
————————!!————————
In reality, Ladimir Vinogradov's Reform Commercial Bank was the biggest gambler, holding $1.8 billion worth of futures, roughly one-third of the total futures market value as of July 1998. Potanin's United Export-Import Bank held $1.4 billion, while Khodorkovsky's Menatep held $910 million. However, their situation was somewhat better in November 1997.
Furthermore, in real history, due to the Russian government's default on its bonds in August 1998, international investors suffered devastating losses. Russia simply defaulted, leaving creditors with no recourse.
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