Daily Archives: October 16, 2008

Up and down. Down and up.  Like all world markets,the Russian MICEX and RTS indexes have been on an endless roller coaster ride.  Both markets didn’t benefit from Monday’s American and European rallies driven by American and European governments throwing capital a life line.  Instead the MICEX and RTS plummeted .  Some of those losses were regained on Tuesday.  The Kremlin solution, like everyone else, is to keep throwing money at the problem. Russia’s banks and big corporations are happily lapping up the monetary milk and honey. However, as most economists note, liquidity may stave off the panic, but it will do little to address the deep structural problems facing world capitalism.

Monday’s calm was short lived as investors began panicking over the global economy’s long term prospects.  Last weekend’s global defibrillator jumped started the markets for one historic day.  On Monday, the US Dow shot up an unprecedented 936 points. ..read more