The MICEX index was down nearly 9% on Wednesday
Russia’s MICEX ruble-based stock index was down 8.7% in Wednesday’s trading, and the RTS dollar-based index was down even more, a whopping 9.3%. Trading on the RTS was once again shut down, at 1 pm Moscow time, in panicked fear of total collapse — so the losses could have been even greater. The RTS banking index was down nearly 11% and Gazprom shares were down 10%. And all this occurred before the U.S. market took another major nosedive, so Lord only knows what horror may lie in store for Russia’s markets tomorrow — if, indeed, they are allowed to open. As shown above, the MICEX is down nearly 40% from just three weeks ago, crashing well below the 1,000 point psycholgical barrier two weeks ago and closing on Wednesday well below 700. But for dogged arbitrary shutdowns of its trading floor and frenzied efforts to distort its balance sheet by the Kremlin, the market’s value today could well be zero.
The US dollar is soaring against the Russian ruble
Meanwhile, as the world turned its back on Russian equities the utility of the Russian ruble became quite dubious, and the dollar soared against it in the same proportion that the MICEX had fallen.
La Russophobe 
everything is down right now :(
As of today, the RTS has lost close to 70% of its value since it peaked in May of this year.
The fascinating thing are the growing numbers of businesses and industries that are lining up to be bailed out and begging for cheap loans from the state including: banks and oil and gas companies (notably GAZPROM and LUKOIL).
Now, we can add to the list:
– Power companies as The Moscow Times Reports: “A partnership of electricity producers said Wednesday that its members were planning to ask the government for tens of billions of dollars of cheap loans to finance their efforts to build up capacity amid the global liquidity crunch.” (see: http://www.moscowtimes.ru/article/600/42/371700.htm)
– Farmers: “The agricultural sector needs more than $34 billion from a government rescue package by the end of 2008 to refinance loans and ride out the global financial crisis, the head of Russia’s grain industry lobby said Wednesday. Russian Grain Union president Arkady Zlochevsky said the country’s biggest harvest in 15 years had contributed to falling prices, increasing the strain on farmers struggling to repay debts incurred to buy equipment and improve crop yields.” (see: http://www.moscowtimes.ru/article/600/42/371698.htm).
Is there any industry in Russia that does not need to be bailed out?
Russia’s largest industry – bureaucratic corruption – certainly does not need a bailout
How about GM, Ford, AIG, Fannie, Freddie et al? Oh wait, total nationalization can only happen in Putin’s Russia, not in America.
I think La Russophobe would be happy if no Russian left in Moscow had a pot to piss in, even if she were blogging from the streets. What stupid schadenfraude.
Was only a matter of time: FT reports that another great Russian bank run has begun.
Seems like Vlad-Public was shifting his cash into the only two banks that are supported by the Kremlin, before the enivitable “ban on withdrawals” was imposed. Those who got their money out duly deposited their savings, which are now ready for transfer to the Caymans.
http://www.ft.com/cms/s/0/b2115c90-9afd-11dd-a653-000077b07658.html
Dan,
The average Russian never had that pot in the first place, Putin’s Russian dream was “a pot in every house”, America at least promised, then delivered that chicken.
Another great article on the subject from the Economist titled ‘Kremlinomics – Why the Russian markets have fared worse than others’.
http://www.economist.com/displaystory.cfm?story_id=12436213
ACbKO, America has never promised such a thing,until Roosevelt. Look up the Bill of Rights.
To sum it up, conflicts between the individual and the state will favor the individual. Conflicts between the individual and the federal government will favor the individual. Conflicts between the state and the federal government will favor the state.
Somehow that is lost in the neo-communist thought process.
When the speak of individual liberties, they speak of the womans right to choose.
What of the weakest among us. The people with no voice(yet). Who speaks for them?
I got a little side tracked, I apologize.
The American experience is not about what you can extort from your neighbor, its what you can trade in kind.
If your no good at making pots, but you know how to raise chickens, you trade some chickens for a decent pot.
The american ideal is mutually beneficial to everybody.
What of the weakest among us. The people with no voice(yet). Who speaks for them?
Learn values, go to school, work and speak for yourself
ACbKO, I have values, I may not be enrolled, but I learn more usefull information everyday at work than most people will learn in a year. That is because I have a unique opportunity of evaluating people that make the same mistakes that I have. I don’t judge harshley, I judge fairly. When I am forced to justify my decision, I am on trial as well as the person I am evaluating.
I don’t know if you would consider this speaking for myself, but I believe in my best judgement, that I have met and exceeded all of your expectations.
ACbKO, I would also like to add that I have more credits than the average graduate student(more than 140).
I’ve been working full time for over a decade, and capable of speaking for myself when I feel it necessary.
So,What of the weakest among us. The people with no voice(yet). Who speaks for them?
Can you answer that for me now?