Monday, December 22, 2014

Russian MPs Issue 1T Rouble Bank Recapitalization Bill

This is not hitting the headlines but as reported here in The Guardian, apparently the Russian government representatives have appropriated up to 1T rouble for bank recapitalizations if needed.
Last Friday, Russian MPs rushed through a bill authorising a 1tn-rouble recapitalisation of the country’s banks, which have suffered big losses as a result the currency crisis.
I'd take issue with the assertion here that this appropriation was necessary as a result of the so-called "currency crisis", I'd rather assert it had more to do with the collapse in oil prices in USDs but this story is revealing in any regard.

I think this is a good move they are making here.

I'd hate to see what our government representatives would do in response to a similar crisis here in the U.S. these days. In 2008 Hank Paulson had to literally get on his knees to beg Democrat House Speaker Pelosi to pass a similar bill (TARP), and ever since then there has been nothing but complaining about this so-called "bailout" everywhere you look.

This is a good move that they are making and coupled with the 17% policy rate which will get another form of fiscal support going (2% GDP) through the interest income channel, should surely help to get things turned around there domestically.

This move towards more fiscal support by Russian government personnel may stand in contrast to how the U.S. government personnel will conduct themselves when we are up against the U.S. so-called "debt ceiling" in March.

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