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How to curb the reemergence of the old Soviet bear can be described as the greatest gut-check that the western nations have faced in a long time. Right now, there is increasing talk of an arms embargo against Russia. The timing would be perfect as Russia’s military capacity is in tatters.

Two years ago, Russia embarked on a ten-year rearmament plan; its Soviet era weapons were largely ineffective against advanced military rivals as they had all gone past their expiration dates.

Economic sanctions in a global economy mean collateral damage for all the players, and possibly a winter without gas in Europe. Then there is the hit to the western nations selling military weapons and parts to Russia, beginning with France.

In June of this year, Russia sent 400 sailors to France to begin training on one of the two Mistral warships that they’re purchasing for $1.6 billion. This ship is the perfect weapon to attack dissenters, like the kind that forced the puppet regime in Ukraine to flee earlier this year.

Considering how much France preaches about doing the “right thing,” its going to be difficult for them to justify this sale, but they need the money.

On that note, the French might also point out that they’re not the only western nation making a few bucks from arms sales.

Of the top 15 global arms companies, 10 are based in America, 2 in France, 1 in the UK, 1 in Italy, and 1 in the European Union.

This $395 billion market is being driven by sales to developing nations that are currently in arms races that point to major future escalations.

So, I’m not sure we have a high moral ground to stand on, but if the west makes a stand here, it could get Russia to slow down its rabid behavior.

Earnings Scoreboard

The big tech names from last night posted mixed results, but good enough for bulls to remain ebullient.  The biggest disappointment was Whirlpool, while surprises included coal revenue up at Norfolk Southern.

There’s a fair amount of angst in the market, but it cannot be pinned on anything. Look for tech to garner most of the early action.