EADS and Their Russian Handlers

Some recent news included the announcement that the Thales Group, a European defense conglomerate based in France, was planning to sell two French Mistral Class Amphibious Assault Vessels to Russia. The fear in NATO is that Russia will use these ships against Georgia, a country which aspires to be free of the Russian yoke of tyranny. Latimir Putin, Russian despot extraordinaire, must be put in his place. Russia is a second-class power that has failed in every political endeavor it has embarked upon over pretty much the last century. As a communist experiment, it could barely feed its own populace; and now as a 'dimocratic" nation, it passes power like a ping pong ball back and forth between two equally incompetent dictators.

So the Thales Group wishes to throw its cards in with the Russians. So be it. The United States must equivocally demonstrate that such behavior will cost them access to the US defence market, and that the US will seek to exclude them from any NATO dealings. Since the US provides some 50% of NATO funding and has by far the largest defence budget, the Thales Group had best prepare for some lean times. Investors would best be advised against buying Thales Group stock, and other companies considering linking up with Thales had best reconsider that position. Are you listening EADS and Northrup? They could likewise find themselves on the outside looking in.