Anschluss.
On 12 March 1938, Hitler's troops crossed the Austrian border and marched to Vienna. In a blink of an eye, the German-speaking Austrians were united with their northern cousins. A plebiscite was held a month later, which revealed that 99.75 % of Austrians had always dreamed of becoming part of the great German nation!
The markets sold off after this blatant violation of a country's sovereignty. The S&P lost 20% in two weeks before bouncing back. By October, it was 60% above the low reached on April 1.
Markets want the status quo above all. After the annexation of Austria, Hitler's appetite seemed to be satiated. Europe's map had changed a bit, but investors believed there would be no further invasions. Stock markets recovered. Too bad the movie didn't stop there.
The Crimea and Ukraine.
The Crimea is a financial basket case. So, why would the Russian people care about this desolate little island? Even the military does not need Crimea for so-called strategic reasons. With the Russian navy firmly anchored in Sebastopol, it is ludicrous to believe there was even a remote possibilty of the Ukrainians trying to dislodge the world superpower from its base in the Black Sea.
It is hard to believe that the master in the Kremlin himself cares much about Crimea. What he is eyeing is the real prize: Ukraine - at least that part in the eastern part of the country that used to be called New Russia. But for now, markets don't seem to think that Putin will go on to grab anything else. They seem to believe that the European map has changed a bit, but there will be no further invasions.
Putin is No Hitler.
Isn't it convenient to convince oneself that Putin will go no further? He is too smart
