Freefall on the Russian Stock Market

[Drums of War]

If you think things are bad in the US then go look at Russia. Yesterday the Russian government announced that it could no longer afford to defend the Russian ruble on the currency markets, having squandered already a huge portion of its cash reserves doing so and simultaneously creating artificial demand on the Russian stock exchanges to prevent them from totally collapsing. On top of that, the price of oil on world markets dropped below $60 per barrel, a stunning cut in price from the $140 it had reached a few months ago. The result was entirely predictable: The Russian stock markets went into freefall.



The Associated Press: Russia allows ruble to fall, stokes uncertainty

[December]

This is what happens when you try and manipulate the free market.

[B.O.]

Originally Posted by Drums of War

If you think things are bad in the US then go look at Russia. Yesterday the Russian government announced that it could no longer afford to defend the Russian ruble on the currency markets, having squandered already a huge portion of its cash reserves doing so and simultaneously creating artificial demand on the Russian stock exchanges to prevent them from totally collapsing. On top of that, the price of oil on world markets dropped below $60 per barrel, a stunning cut in price from the $140 it had reached a few months ago. The result was entirely predictable: The Russian stock markets went into freefall.



The Associated Press: Russia allows ruble to fall, stokes uncertainty

I hope we don't see the returns of the bread shortages and food lines in Russia...or anywhere else for that matter.

[Cyanide]

Russia closes its stock market for days at a time when things go bad for investors to relax and think things through. Imagine if they didn't.