Perhaps the comments on Russia last week were a bit precipitous. The question now may be is the Russian economy collapsing under the corrupt and totalitarian rulers?

Russia's Central Bank chief moved to reassure the country on Wednesday that its banking sector was sound, and a major state-owned bank stepped in to rescue the largest casualty yet, the troubled Guta Bank.

Not only are collapsing banks a bad sign for the economy, but having to reassure your populace that the banking community was sound would be a serious cause of concern.

The two officials' comments appeared to support the view that the state is planning to carve up the company and redistribute its assets to new owners but not destroy a cash cow for the country.

The state is going to carve up one of the largest companies in the country. Concerning?

We are saying that macroeconomic policies have been good, but there are emerging tensions and there is a need for correcting macroeconomic policies.

Comments from the IMF a warning? And on top of that, the Editor of the Russian version of Forbes was gunned down.

Before we dismiss the blip on the radar, should we be watching the chaos in Russia a little more closely?

posted at 06:59:00 on 07/14/04 by clearpolitics - Category: Economics - [Permalink]

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