An Emergency Situation

I’ve written several times on this website about why investing in paper such as stocks, bonds, and mutual funds is a bad idea if you wish to keep your money. I have formed this opinion because my research and my experience show these investments offer small rewards and hidden risks.

Yes, I realize that Certified Financial Planners and other trained and licensed advisors – those who make money only when someone invests – claim they can show you how to reduce risks and maximize rewards. However, their perspective is so narrow they often ignore the big picture.

For example, they don’t look at risks that go with releasing the control of your assets to someone else. Moreover, if they are advising you on a retirement account, they don’t mention that placing your assets in a retirement account gives the IRS legal control over your assets.

I’ve written previously about those risks.

However, I haven’t written about the hazards associated with an emergency situation.

In fact, if yesterday’s situation in Russia is any indication, it seems that no one really understands those risks.

Closed SignAround midday yesterday, I started seeing mentions of a story on the ZeroHedge website regarding the Russian Trading System (RTS). It said the Russian Stock Market will not reopen.

I hadn’t heard of the RTS so I did a little research. I discovered the RTS is the equivalent of the NASDAQ system in the United States. I also learned that the majority of Russian equities trading is conducted there.

I assumed this would be a huge story so I waited for other news outlets to report it.

They didn’t.

I nosed around the internet and – other than a few bloggers who were writing about the ZeroHedge story – I found nothing.

One blogger speculated that the closing was tied to this story about European companies losing more than one hundred billion pounds in value yesterday. (See the comment section of this article for what the referenced blogger really meant.)

However, even that story from The Telegraph didn’t mention the closing of the RTS.

I went to sleep thinking that something would be in the news this morning.

I found nothing to explain the situation exception two cryptic stories.

One from Reuters and another from Bloomberg: each story was the shortest financial story I had even seen written on their sites. Either they knew nothing or they are hiding everything.

There was also an explanation from RTS apologizing for the situation and saying steps were being taken so it wouldn’t happen again.

The implication was that this was some kind of computer glitch, perhaps a hardware or a software malfunction. However, they didn’t explain what caused the hiccup.

The absence of news about this situation speaks volumes.

If I had money in the market, anywhere in the world, I would pull it out immediately. The current situation is so tenuous that, based on yesterday’s events, it can disrupt a resilient computer network, close a major stock exchange, and tie investors’ hands while their assets disappear.

In addition, it can make the world’s media outlets, the ones that pride themselves on astute financial reporting, completely deaf and dumb.

What is going on here?

If today’s lack of reports is any indication, I doubt mainstream media will give us an explanation about yesterday’s events. Therefore, I’ll explain what I think happened in tomorrow’s article.

5 thoughts on “An Emergency Situation

  1. NCRenegade

    My article was not meant to imply that there was a correlation between the losses in the European Stock Market and the closing of the Russian stock exchange as stated above. The information from the Russian stock exchange posted in this article declaring an emergency has been removed:
    http://ncrenegade.com/editorial/russian-stock-market-will-not-reopen-the-situation-has-been-recognized-as-an-emergency/

    Here is the latest information from this morning:
    Russian Stock Market Outage Update
    http://ncrenegade.com/editorial/russian-stock-market-outage-update/

  2. MatthewCCox Post author

    Thanks for the additional information. You are correct. Your article did not imply that. However, it had a link to The Telegraph story and quoted some of The Telegraph’s article. Therefore, I immediately made a connection and I assumed you were making that connection too. I apologize for putting words in your month.

    By the way, in spite of the official word from RTS, I believe there was a connection between the two events. Do you?

  3. NCRenegade

    I believe the lines are being drawn. Based on my information from multiple sources, a combined US/Israeli attack will be made at night on the new moon on May 20th. The US is requesting 2500 private contractors (mercenaries), the intelligence officers were sent to the area 3 weeks ago and the naval forces are in place. Iran has a treaty with Russia so this will quickly spread to a world war if this happens.
    The point is that war is the only way to postpone the economic collapse. Another consideration:
    http://ncrenegade.com/editorial/why-are-central-banks-buying-gold/

    Is the European Stock Market decline linked to the Russian Stock Exchange Outage? It is possible but all of the factors coming together at this time all point to the same conclusion.

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