Slava Rabinovich on the Russian economy: Slow motion train wreck was even more slow

Russian banks and companies go bankrupt because of a sharp decrease of the Kremlin leverage in the economy and increasing the cost of capital. This opinion was expressed by the Russian financier and blogger Slava Rabinovich in Facebook.

«Russian banks and other companies go bankrupt because Russian President Vladimir Putin and his gang (1) made a «explosive deleveraging» (reduction of the debt burden, reducing the share of borrowed funds, reducing debt through rapid asset sales. – «GORDON») and (2) by inflating the weighted average cost of capital (WACC) (the average interest rate on all sources of funding. – «GORDON») to the heavens. That’s the whole story,» he wrote.

The financier said that the Kremlin was able to slow down the process of the collapse of the economy.

«The only thing I was wrong: I thought that everything will collapse in two years. Putin’s almary mine (one of the main organizers of the war economy of Nazi Germany’s Hjalmar Schacht. – «GORDON») «slowed down» the process until three or four years. Slow motion train wreck was even more delayed,» – said Rabinovich.

https://www.facebook.com/slava.rabinovich.9/posts/1549237425137566



Slava Rabinovich on the Russian economy: Slow motion train wreck was even more slow 29.09.2017

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Сентябрь 29th, 2017 by
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