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Russia Looks to Privatize and We Look To Socialize

October 1, 2009

Recently Mr. Putin said a new  round of government privatizations would begin and it would likely involve the government dumping shares in companies which had been gained in recent bailouts during the global recession.

In the last few years Russia tapped international capital markets. Russia refused to give up control issued bonds or took out loans with foreign banks rather than issuing stock.   Recently over$500 billion came into Russia.

The global economic crisis dried up in a matter of weeks most funding sources. Commodity prices fell, the ruble dumped 30%. Loans and bonds  require repayment in currency reserves. The Russian economy contracted quicker and deeper than any other major state in the world.

So Russia looks to privatize and we look to expand government takeover of business?

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