Politician Sergey Glazyev believes, the stock market will remain shocked for a short time
Sergey Glazyev, leader of the patriotic bloc Fatherland (Rodina), has recently commented on the economic situation in Russia and the changes connected with the arrest of Yukos's CEO, Mikhail Khodorkovsky.
Sergey Glazyev believes that the collapse of the Russian stock market is absolutely ungrounded and the situation will be stabilized in a week or two. Glazyev thinks that Russian stock prices dropped because of the structure of Russia's present securities market: "Our stock market is rather speculative in its nature, it is not the market of investment. This is the result of the privatization. It will remain the same until the property relations are finally fixed and until investors are trying to gain profits without investing anything in production - they simply boost the cost of stocks. As long as the market remains speculative, speculators will use any news, good or bad, to derive profit and to destabilize the market with that," Sergey Glazyev said in a statement.
"They have been recently speculating on Mr. Khodorkovsky's trouble: the panic has made it become a political event, caused damage to Khodorkovsky and collapsed the market. Needless to mention that speculators have earned a lot on that. The reaction of the market to Mikhail Khodorkovsky's arrest in connection with the political echo is very inadequate and exaggerated. Because of the hysterics caused by several party leaders, market members believed that the situation had become political. The market reaction was similar to the reaction of political persecution. I think that present events are not a political campaign and Khodorkovsky's arrest will not be followed with the arrest of other businessmen. It is a private matter of prosecuting agencies. It will happen gradually - the people behind the collapse of the Russian stock market will understand that the reduction has reached the minimum level. They will start buying them and the process will develop backwards. I think that the market will stay shocked for a couple of days and then it will gradually recover."