-With Russian banks getting banned and sanctioned everywhere, what will happen to the market? Well if you freeze a country's dollar reserves, you decrease the liquidity within the market. With the decreased liquidity central banks such as FED would normally have to print more money or open more Swap Lines for other banks so that these banks have money to lend. This whole swift ban and sanctions on Russia have such a dramatic effect on the economy which we can't even imagine how will come out in the end. Definitely has a bearish effect tho!
-Another issue is the rising Gas prices. Well, why do they rise tho? Maybe because Russia is a major supplier of Gas internationally? That might be the issue, right? Of course, it is! One thing that Putin has, and that's his Ego. With so many sanctions applied to him from his western friends, he definitely plans about a pay-back in terms of Gas. Germany is a major economy in the European Union and Germany greatly depends on Russia for Gas. Guess what happens in inflation goes up in Germany due to rising oil prices? Union goes down as a whole.
-Third and last issue is the March Fed interest rate hike. Initially, it was clear that Powell wants to start easy with some small rise, but what about now? With the whole war and its effects on additional inflation, will we have a bigger rise? Or will FED ignore inflation for a while and save the market from a crash by easing the economy for a little more? Well, that's the question that keeps the market away from the crash, for now, it all depends on FED. Honestly, in this hell, we see no light, super bearish. But who are we when there is FED and their decision in March? Let's see how it goes!
-Another issue is the rising Gas prices. Well, why do they rise tho? Maybe because Russia is a major supplier of Gas internationally? That might be the issue, right? Of course, it is! One thing that Putin has, and that's his Ego. With so many sanctions applied to him from his western friends, he definitely plans about a pay-back in terms of Gas. Germany is a major economy in the European Union and Germany greatly depends on Russia for Gas. Guess what happens in inflation goes up in Germany due to rising oil prices? Union goes down as a whole.
-Third and last issue is the March Fed interest rate hike. Initially, it was clear that Powell wants to start easy with some small rise, but what about now? With the whole war and its effects on additional inflation, will we have a bigger rise? Or will FED ignore inflation for a while and save the market from a crash by easing the economy for a little more? Well, that's the question that keeps the market away from the crash, for now, it all depends on FED. Honestly, in this hell, we see no light, super bearish. But who are we when there is FED and their decision in March? Let's see how it goes!