Tuesday, April 9, 2013

Is Putin’s Russia the biggest winner of the U.S. induced financial crisis?

I have called a breakfast meeting with our senior executives in order to discuss Russia’s surge in investment banking and how our interests are aligned. It is no secret that the financial crisis which was induced by stupidity out of the most regulated part of the U.S. financial system, the mortgage market, caused the global system to weaken drastically as communist regulators tried to choke of financial evolution as well as competitiveness.

My personal assistant enters my office with a dossier which I need for the meeting and the two of us are headed towards the conference room. As we make it past security she tells me that she is convinced that the rest of the senior executives will agree with my proposal to exponentially increase our business with Russian investment banks and attempt to win some business with elite Russian oligarchs. I glance over at her with a smile of confidence and a minor nod of agreement.

I am the first executive in the conference room and my personal assistant heads over to get me my fresh squeezed orange juice with a squirt of lemon juice mixed in it. The conference room soon fills up with the rest of the executives whose presence I requested in order to discuss our Russian strategy. The U.S. financial system continues to remain on live support as Ben Bernanke, also known as the Septic Tank, and his Twelve Plumbers at the Fed continue to abuse their dead patient. This has caused prolonged struggle not only for the U.S., but has had negative impacts on the global financial system. Anything Bernanke does not manage to kill, Dumbama will finish of as he pisses on the U.S. constitution and is the biggest scam in American history.

Europe has struggled with their own debt contagion as the situation, especially in the Eurozone, deteriorates at an alarming pace due to the German Neo-Nazi invasion of Eurozone periphery countries under the lead of Angela Merkel who decided to take a page or fourteen out of Hitler’s Blitzkrieg strategy. The developed world has, with very few expectations, all made the same mistake to jump on the sinking ship, the crumbling empire, the dead economy now known as the United States of America.

Among all those pathetic excuses for policy makers and politicians and those who claim to be, we have Russian President Putin as the victor. Bailouts were everywhere, but most bailouts were funded by debt. President Putin took a slightly different approach, one that actually materialized and worked. Putin pledged $200 Billion in loans as well as tax relief to a selected number of Russian oligarchs in 2008 through state-owned banks.

In 2005 the market share of Russian investment banks stood at a laughable 7%. In 2012, thanks to President Putin’s approach to solve the ripple effects of American idiocy, their market share has surged to 38%. At the forefront of the surge stand OAO Sberbank as well as VTB Group. After Lehman Brothers as well as Bear Sterns collapsed in the U.S. most investment banks cut their investments, shut their doors and turned their backs on all in need. Russian investment banks did the opposite and maintained strong relationships with existing clients while seeking new ones at the same time. The end result is visible in the 500% surge in market share which continues to grow.

The share of European banks dropped from a record 61% to 32%, while U.S. investment banks saw their market share shrink from 27% to 20% and the rest of the world accounted for 10%. Each company which received financing or assistance during the height of the financial crisis had to include Sberbank as well as VTB in their deals. President Putin understood how to assist in times of need in order to come out of the financial crisis much stronger, while the U.S. went down the opposite way. Additionally Sberbank as well VTB increased their global M&A market share form 0% to 13%. Anyone who argues with success is beyond ridiculously pathetic.

The surge of Russian investment bank has caused plenty of weaker competitors to leave the country. Foreign competitiveness of global banks has been crushed thanks to a communist approach across most Western banking centers as only London walks a fine line right now, but is rushing towards the abyss. Ben Bernanke is among those who bare great responsibility for the collapse of Western investment banking. An unknown source told him that he is qualified to lead and unfortunately he was given the position to destroy the entire American empire.

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