wiredseal7 said:We saw how easily our leaders and European politicians jumped to vote for sanctions—all in that desperate, heated rush to play wrecking ball to the Russian economy.
Isn't that an unpredictable risk too? And I don't just mean when it comes to Russia.
Whether they return the planes right now or not doesn't really matter—nobody’s going to touch leasing aircraft to Russia again. They're just sitting ducks for retaliation if relations sour further—easy target for some payback. If they actually decide to hand them back, I guess that means the risk level has finally stabilized. At least, that's how I see it.
Look, you're missing the point—you don't actually need a third of your balance just to cover account maintenance and those little extra fees. Even in places like Switzerland, where they’ve started charging negative interest just for the privilege of holding your cash, we're talking less than 1% a year. It's pretty much the same story with most other financial services or investment products out there.
Sanctions—at least in this specific instance—aren't some unforeseen variable. They are the logical, predictable consequence of launching an armed conflict of this magnitude in 21st-century Europe. If anyone truly believed this would pass without a calculated response, they were deeply mistaken. To me, the only thing that justifies Putin and remains illogical in this entire sequence is that lukewarm reaction we saw during the occupation of Crimea.
Whether they return those planes immediately or not, it will be difficult to find anyone willing to lease them to Russia in the future. They are easy prey for retaliation if relations sour again; a convenient tool for vengeance. If they do start leasing them again, then the risk has presumably returned to baseline levels. At least, that is my assessment.
Of course, aircraft leasing will eventually resume; it is merely a matter of timing. Be it in a year, a decade, or a century. It will happen. Initially, insurance premiums will be prohibitively high, making the math unappealing, but those costs will gradually decline as special guarantees are issued or perhaps through certain account deposits. Once the leasing business restarts and regular payments begin to flow, everything will normalize. It will happen under terms that satisfy all parties involved. Time is the only variable.
How can you think that? One-third of the funds isn't enough to cover maintenance and similar overhead. Granted, Swiss bankers are now charging negative interest rates to hold money in accounts, but even that sits below 1% annually. That applies to most financial services and investment products they offer as well.
Bankers always have their reasons for their actions. From my experience, those reasons are inextricably linked to their own interests. They aren't there to help others; helping people is simply a byproduct of the fact that they prioritize themselves first.