The Mighty Russian Economy.

[Newell Steamer]

It might seem a little odd that one single company is now worth more than the entire publicly traded market of a major economy. But that’s what has happened to Apple, that one single firm is now worth more than the entirety of the Russian stock market. However, this isn’t so much a story about how wonderfully Apple is doing (the valuation of Apple is still quite low going by the traditional numbers like EPS and so on), rather, it’s more of a story about how appallingly bad Russian public policy is.

http://www.forbes.com/sites/timwors...th-more-than-the-entire-russian-stock-market/

Murderer, tyrant and now the top of an economy that has been bested by 1 single company - that's some mighty fine leadership,...

Also, for his fans, here is how you can get close to him; http://www.ehow.com/how_8310452_apply-russian-citizenship.html

Have fun at the Kremlin!

 

[doubledeluxe]

When I was in Russia it was very poor. Not African village poor but it's definitely one of the poorest places I've been. So this shouldn't come as a surprise to any one. Especially considering that apple pays virtually no taxes and is an incredibly successful company.

 

[zephyrprime]

All of Putin's machinations in Ukraine is what brought on this precipitous decline in the Russian market. Then the drop in oil prices didn't help matters.

ALSO - it shows that the US stock market is overvalued. We're currently at higher expensiveness levels than at the peak before the 2008 crash back in 2007.

 

[WelshBloke]

We should just buy Russia. :awe:

 

[zephyrprime]

When I was in Russia it was very poor. Not African village poor but it's definitely one of the poorest places I've been. So this shouldn't come as a surprise to any one. Especially considering that apple pays virtually no taxes and is an incredibly successful company.

When was that?

 

[MagnusTheBrewer]

Say it with me now, the Russian stock market is NOT the Russian economy. We make that mistake because in every other major country it is a fairly accurate reflection of that country's economy. The Russian economy is an iceberg and the stock market is merely the tip. The majority of the Russian economy is not tracked by the normal financial tools because the majority of the Russian economy is controlled and managed by legitimized mob bosses with vested interests in doing business outside the normal channels.

 

[doubledeluxe]

Handful of years ago. Basically the clubs in St Petersburg and Moscow were some of the nicest and most expensive I've ever been to but only the mafia was in them. For 95% of Russians they could barely afford meat. I can't imagine much has changed. Their veterans were all over the streets drunk and begging, people smoked tobacco wrapped in newspaper and almost nobody could afford to pay for basic things like rent, utilities, or transportation. Walk into any apt building and the bottom floor was covered in bills that nobody paid and graffiti.

 

[Genx87]

lol

 

[Jaepheth]

We should just buy Russia. :awe:

That would be a delicious irony for the history books.

 

[Genx87]

I guess stealing land from smaller neighbors has consequences after all.

 

[senseamp]

They have a supply sider's dream 13% flat income tax. Clearly they must be a prosperous country, it just hasn't trickled down yet.

 

[Atreus21]

All of Putin's machinations in Ukraine is what brought on this precipitous decline in the Russian market. Then the drop in oil prices didn't help matters.

ALSO - it shows that the US stock market is overvalued. We're currently at higher expensiveness levels than at the peak before the 2008 crash back in 2007.

When oil prices drop, it's bad for America's enemies and their one-trick-pony economies.

Drop baby drop.

 

[cubby1223]

When oil prices drop, it's bad for America's enemies and their one-trick-pony economies.

Drop baby drop.

I don't know anymore. It's very bad for the common civilians in the oil producing nations. But somehow those in charge find ways to keep moving forward. It's like, all the bad stuff continues as normal, the improved civilization for the commoners is what shuts down.

 

[Atreus21]

I don't know anymore. It's very bad for the common civilians in the oil producing nations. But somehow those in charge find ways to keep moving forward. It's like, all the bad stuff continues as normal, the improved civilization for the commoners is what shuts down.

That's true of almost all nations. But I disagree anyway. When the Ayatollah sees the price of his country's one major export plummet, it's got to make him sweat. And that's good.

 

[senseamp]

When oil prices drop, it's bad for America's enemies and their one-trick-pony economies.

Drop baby drop.

Bad for Louisiana too.
http://www.sfgate.com/news/article/Oil-price-drop-creates-havoc-in-Louisiana-budget-5894018.php
Good for us blue states though

 

[Atreus21]

Bad for Louisiana too.
http://www.sfgate.com/news/article/Oil-price-drop-creates-havoc-in-Louisiana-budget-5894018.php
Good for us blue states though

So be it. That's supply and demand. I didn't say it's win win. We'll see our economy suffer (Louisiana that is), but the rest of the country's citizens get cheaper energy, and to boot our real enemies howl.

I'll happily take that action.

 

[Spungo]

When I was in Russia it was very poor. Not African village poor but it's definitely one of the poorest places I've been. So this shouldn't come as a surprise to any one. Especially considering that apple pays virtually no taxes and is an incredibly successful company.

Oh? But Paul Krugman said Russia was a Keynesian utopia with super high inflation:

We can't even get 2% inflation. Russia had hyperinflation. Those lucky bastards. I sure wish my life savings would become totally worthless. Think of all the jobs it would create.

Say it with me now, the Russian stock market is NOT the Russian economy.

You'll NEVER convince people of this. I said Tesla was a fake company with no earnings and this forum universally agreed I was wrong because the stock price was going up. A year later, they still have no earnings. Do investors care? Nope, stock is at record highs:
https://www.google.com/finance?q=NASDAQ:TSLA&fstype=ii&ei=TYBrVOi2GpHk8wbhjIGgAg

+29.07mm cash from operations
-601.22mm capital expenditures
-572.15mm free cash flow, and that's only 3 quarter into the year!
Market cap of this completely worthless company: 31.94 billion US dollars.

Some other gems of worthlessness:
Twitter (no earnings), market cap 25 billion
Pandora (no earnings), market cap 4 billion
Yelp (PE of 3675), market cap 4 billion

 

[doubledeluxe]

Speculation baby! Its how our bubbles work

 

[lozina]

We can't even get 2% inflation.

Lucky for us, when one CPI formula starts getting too high, we just change the rules and come up with a new formula that results in a more favorable result. If you used 1990 CPI formula, we'd be showing just over 5% inflation. If we continued to use 1980's CPI formula, we'd be showing close to 10% inflation.

 

[hal2kilo]

Bad for Louisiana too.
http://www.sfgate.com/news/article/Oil-price-drop-creates-havoc-in-Louisiana-budget-5894018.php
Good for us blue states though

Speaking of one trick poney economies.

It amazing a state with such natural resources of wealth and one of the largest ports in the world, yet the state is so poor. Red states.

 

[rudder]

They have a supply sider's dream 13% flat income tax. Clearly they must be a prosperous country, it just hasn't trickled down yet.

Exactly. I am sure graft and corruption throughout all levels of the government have no impact on the state of their economy.

 

[bshole]

Exactly. I am sure graft and corruption throughout all levels of the government have no impact on the state of their economy.

So Red states have horrible economies because their Republican governments are completely full of graft and corruption?

 

[Pray To Jesus]

Sell some nukes for cash?

 

[calyco]

If you owned Apple Inc. (AAPL), and sold it, you could purchase the entire stock market of Russia, and still have enough change to buy every Russian an iPhone 6 Plus.

Ouch lol

 

[Spungo]

Lucky for us, when one CPI formula starts getting too high, we just change the rules and come up with a new formula that results in a more favorable result. If you used 1990 CPI formula, we'd be showing just over 5% inflation. If we continued to use 1980's CPI formula, we'd be showing close to 10% inflation.

Yeah but it's good inflation. Going into debt just to buy groceries makes it easier to pay off debts. /s