My final post for this semester OR Finacial Crisis in RUSSIA

In this post i would like to conclude and sum up everything what i have written before

First of all, i would like to say that this year 2008 was very hard for every country due to the Global Financial Crisis. The crisis occured very suddenly for people, like me,who were not very involved with Financial markets and their situation. I never thought this would happen, but unfortunately, as many specialists claimed , the crisis was expected for a long time and inevitable.

In Russia , the situation is getting worse day by day, in a way that people notice it in everyday life, such as change (fall) in prices for luxury commodities, dramatic slip in sales and just overall population's shock and preparation for the "worse".

There are many programmes on russian TV that talk about crisis, where as some presenters claim that it is not going to influence Russian economy too much, on the other hand, others state that the crisis can lead to great depression, like in US in 1929 and ruble's default in 1998.

People are anxcious and do not know what to expect, but as according to famous economist Andrey Cherepanov, russians should not worry too much because of ruble's recent depreciation. He explained that our Government will not allow the default, however also suggested that people can transfer rubles into japanese yens or british pounds in order to be more sure and safe. Again,

controversy from leading economist, but it doesnt surprise me, because i am used to things like this.

In the end i would like to mention, that some experts are saying that crisis is going to be very long and really bad for majority of people, that can lead to depressionin its turn. Others say that it is going to hit its bottom, the lowest point after New Years, but then closer to the summer, the situation must stabilize.

Nobody knows, how it is going to be for sure, but all we can do is hope for the best and cut down expences for a mean while.

I wishGood Luck to everyone!!!!

BLOOMBERG!!!

This post would be different to all previouse ones, i have done so far.

Yestarday on the 20th of November, our class from Financial Media and Communication EBS, visited Bloomberg Terminal in the City. I found this expirience very interesting and fulfilling.

Firstly, i would like to say that i have not heard about Bloomberg before i started doing Finance in EBS,London. However, when i first looked at their website, it did not fascinate me. Therefore, that visit changed my whole perception about them.

I want to start from explaining their building and the way people work their. From the outside, the building looks like all others in the city, but when i came inside, i was shocked. Everything is high-tech and "open". People dont have separate offices their,everyone seats next to each other, and as we were told by the HR manager, a person who is doing an internship their can be found seatting next to the executive manager. The organizational structure is very flat,hence the information flows very easily from one department to another one. Each department has their own floor, although, they are all inter-linked and the communication is inevitable part of the working day between departments. Also, i found out that they take interns to work for 8-10 weeks only during summer, no internship is available in the winter. In order to get a working experience there, some serious procedures are taking place. As we were told by Stephen Duso-Bauduin who is one of the employees at Bloomberg, in order to get a place for the internship there, CV, cover letter, recommenadtion letters have to be sent and the interview is to the same extent hard and important as if you want to work at the company full-time. Reasons behind it, is that Bloomberg considers interns ,in case of available positions , to work in the organization full-time. Moreover, he stated that any experience at Bloomberg is an extraodinary opportunity to gain more knowledge about the way Financial information flows and presented in their terminal.

There is so much i can tell about that visit, but the most important thing is that i decided to apply their for the job. I have been told that Bloomberg needs more russian-speakers...Therefore if anyone is interested, go for it and Good Luck!

P.S. I never though before that i would even consider working in the Financial sector, and look at me now i am wiiling to try.

World Bank predicts that Russian RUBLE will depreciate in the short-run

The leading economist of theWorld Bank in Russia Jelko Bogetich when giving the interview to "Komsomolkaya Pravda", said tha the depreciation of Ruble is unavoidable and reasons behind are fundamental.

Reasons are:

• Russia is one of the leading countries in terms of export of OIL



• Oil prices are dropping, because of Global Financial Crises



• Russian economy depends on prices of oil significantely



• Value of Rubles depends on oil prices to the same extent



• Jelko Bogetich claimed: "When the prices for oil go up, value of Rubles rise,on the contrast, when the prices of oil go down,then value of Rubles drop"



• At the moment the situation is reflecting the second statement ,therefore the Ruble is going to depreciate.

But the ood news are according to the economist of the World Bank is that the rate at which russian currency is going to depreciate is smooth and stable. Also he said that the situation is not going to be anything like the defaukt of Ruble in 1998, because Russian economy is not in bad state,even comparing to some developed countries. Also, he stated that by looking at forcast of Russian economy, it is possible that Russia by the end of year 2009, can overcome the worst part of the finacial crisis.

I guess these are good news for Russians. Fingers Crossed!!!

Global Financial Crisis and Mr. Khazin's predictions for Russia in terms of the OUTCOMES.

Global Crisis started from US, and its a well known fact, therefore within the time has been spreading across countries,starting from Europe,then Eastern Europe,ASian countries and the rest of the World. This interview as was promised, from russian newspaper with Mikhail Khazin, scared big chunk of people in Russia. You will understand why when you read it.

Miikhail Khazin has been asked many questions during the interview for "Komsomolskaya Pravda", all of them were concerning Global CRisis, reasons behind it, outcomes for US and the world in general. Although, the most fascinating part of the article starts from Khazin's predicitons for Russians and specifically for oligharks.

He stated that the situation in Russia and especially in Moscow, as it is the biggest city in the country as well as the capital, is going to be dramatic and disastrouse. Khazin's estimations of the unemployment for Year 2009 spring(he thinks that this are going to be the hardest times of Financial Crisis in Russia) in Moscow are around 2.5-3 million people. Half of the million or even 1 million are going to be unskilled workers from post USSR countries,like Tadjikistan, Uzbekistan,Kazakhstan,Azerbaidjan and etc. Also, constructors from same countries who have lower than average income and majority of whom are illegal in Russia. Hence, according to Khazin, these unemployed people will start stealing,robbing and even killing in order to get any money,food etc. Also majority of them are considered to be "wild" and "uncivilized". These in its turn will lead to the increased rate of crime, therefore Khazin suggested that the Government would have deport them, although Mikhail Khazin was not sure in the interview that our Governmnet has an ability and more importantely willingness to do so. Also, he pointed out that the worst and hardest scenario would be when bankers,office workers and etc. would become unemployed. Because maajority of them are relatevely young,ambitiouse,educated people,who are used already to get paid thousands of $ just for the appearance at work. Therefore for these people it would be even harder to overcome the unemployment, hence much less money if any,standards of living would fall , what can lead to depression all over Russia. Moreover, Khazin's concern was that when they get unemployed,they will not be able to pay mortgages(many of them have),credits to the Banks etc. Thus,Banks would have to take apartments and other things instead of unpaid debts. Although, Banks could not act like this,because otherwise people would "destroy" them and Moscow as well. People in Russia can be very agressive in extreme situations like this.

Additionally, there are other concerns Khazin arose in the interview. He said that money which had been injected into the system and the Russian economy, are not going to help the overal situation, due to the fact that Russian Government is known for "steeling money". Therefore, he argued that if "we are lucky, untill spring, we can survive. Otherwise it is time for all population to start growing potatoes and prepare for Great depression",when he said "we" he meant Russians. Also, Khazin pointed out that Russian Government alway thought that we have enough money in the system to pay for everything, where as now, they realised that it is not even that we dont have much, it is not enough to cover all inbalances. Moreover, big corporations are asking money from Government, they need $50billion , banksAgricultural sector is asking for $100 billions, the car industry is begging $1billion,banks need $50 billions, otherwise not going to survive, oil people and oligharks are asking for $50 billion each and saying that do not have any other option to survive. These figures are scary, personally for me.

Also, concerning Oligarhs, Khazin said that he is not even sure that the majority of them would survive in next 3- years.

In conclusion he gave an advice for readers of "KP", saying that people should be aware that bad times came for a long period of time and according to this fact should live their lives.

When i read this article, i couldnt believe what i saw, in the national newspaper very well-know economist Mikhail Khazin, talking about US and saying that 11 of September 2001 was a "stunt" from US government to take people's minds away from upcoming financial crises. Also, him stating that Russian Government may "steel"injected money for recovery of the economy and lastly his predictions about oligarhs. What surprises me is the fact that the interview was not taken out from online since it was published 29/10/08

What else i can say, i dont know to be honest. I am going to hope that Khazin's predictions are not going to come true, but you know what they say "Be prepaired for worst and at the end you will be fine".

I wish everyone Good Luck and hope that the Financial Crises is going to go beyond us and our Families.