My client from Russia bought some nice land in Daytona Beach area. Hired an attorney, talked to city, to the architect, told me that in 6 months he would be ready to build.
And no, he would not need any financing…
When in couple of months I was talking to him, I asked why he was not transferring money to US. I was thinking that he could start doing it and play with this money at foreclosure auctions. He was open to the idea when we spoke initially, but he did not make a move.
He explained that he had his money invested in Russia and the interest was hard to beat, and that he could not withdraw without loosing all that interest, so he had a plan, and it was timed.
He told me not to worry. And he left. And about one month later the ruble fell from 32 rubles for $1 to 60 Rubles for $1 dollar. In a matter of several days he lost half of his money. This was the result of Putin's aggressive stance on Crimea, and his involvement in East Ukraine, American and EU sanctions...
Besides, his business took a severe hit. He had to renegotiate rates with tenants, as rents were calculated based on dollar value, and with ruble losing half of the value, his tenants could not pay what they paid before… so he lost yet another big chunk of his business…
He is not poor, there is enough for him, his family, and he can still maintain a lavish lifestyle… But he no longer can build a 30-unit condominium in Daytona. He is still hoping that better times would come, but he is not overly optimistic.
The world is small, and if someone coughs on the other side of the globe, we somehow feel it here. And if America coughs, the other side get a full-blown fever…
I am passing this land every day. And think of Mr. Putin. I wouldn’t lie, these are not nice thoughts :)
Image by Miguel Anjo via Flickr.com
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