Disclosures from the Central Bank of Russia (CBR) on Wednesday reveal widespread liquidity trouble for the Russian banking system. The CBR announced a package of measures to stave off trouble; lowering minimum reserve requirements and accepting credit as collateral. It disclosed a $277m loan to state-controlled VTB, which itself is said to be in talks to buy three troubled consumer lenders. The CBR said it had been pumping about $2.5bn into the system every day via one-day repo auctions since late September, registering a net private capital outflow of $9.4bn in the third quarter of 2007 compared with a capital inflow of $52.7bn in the previous quarter. The CBR also warned that refinancing demands could rise to $12bn-$15bn per day in October and November.
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Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.
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