Global financial crisis in Russia 2008-2009. Causes and consequences
How to start a financial crisis in Russia?
The reasons for the crisis in Russia
It is clear that the crisis of 2008 in Russia is not there by itself. These were some reasons, both domestically and abroad. However, we believe the external causes of the crisis of 2008 had a greater effect on the financial system than internal causes.
External causes of the financial crisis in Russia: A sharp fall in oil prices to nearly $ 150 to $ 40 a barrel. The financial disaster in the U.S. and it followed the chain reaction throughout the world. The world crisis of liquidity, reducing the access of Russian companies to cheap foreign credit.
Internal causes of the financial crisis in Russia. The strength of Russia's economic dependence on energy prices (oil and gas). Economy Russia export-oriented commodities faced with a situation where demand and prices fell. Fuel to the fire added to the authorities in relation to the business (Mechel, TNK-BP), the intervention of Russia in the Georgian-Ossetian conflict, and then began a sharp outflow Foreign capital in August-September 2008. Teck, the situation complicated the weak banking system, causing a liquidity crisis and banking crisis in Russia. Then the company ceased to have access to cheap credit. Exacerbated the financial crisis in Russia debts of corporations, which are comparable to ZVR.
The effects of the financial crisis in Russia
The effects of the financial crisis may be very different, the crisis will cause both positive and negative changes in the economy. It is now clear that it would decrease income. Reducing the ruble against other currencies, ie, the devaluation of the ruble (sharp or smooth). There is substitution of private capital the public. Because of the financial crisis in Russia in 2008-2009, the Government has already moved to reduce the public infrastructure projects and construction. The largest companies reduced their investment programs. The crisis has touched every business and every employee, companies are reducing the working day and working week. Some companies carry out staff reductions. Banks have raised interest rates for loans, scaling down mortgage program.
From the positive side effects of the financial crisis in Russia could provide the rejuvenation of the economy, the revival of entrepreneurial initiative, the substitution of imported goods - home. Devastation of uncompetitive enterprises and the development of more effective and viable. Increased competition and hence lower prices for some goods. The crisis in Russia has led to lower prices for gasoline, real estate and land to blow off many bubbles in different markets. What happens next could say experts in the financial crisis.
Experts on the financial crisis in Russia
Lyndon LaRouche economist: "It is impossible to give a simple projection, events could develop in different ways. For example, large dollar investors, such as China and other countries, will change the currency. Including Russia will attempt to forge closer cooperation with Europe and other countries. The money will be derived from the dollar zone. And this is only protective measure - the whole world aware of the rapid collapse of the dollar. Some countries prefer a combination of different currencies, not just the dollar."