A Market in Freefall
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.
