Oil Wealth Gone, Russians Brace For Hard Times

Photo: Russian women sell clothing outside of a subway station in Moscow, December 31, 2008. Several such street vendors said business has been getting worse. Many Russians worry that the country's economic troubles will worsen. Tom Lasseter / MCT

From McClatchy Newspapers:

MOSCOW — The subway crowd brushed past Alla Semyonova, tromping through the now-gray slush of a December snowfall.

Semyonova held a black knit sweater for sale dangling from a wire hanger in her right hand (1,000 rubles, or about $33) and a blouse with gold flowers in her left hand (500 rubles).

The 67-year-old woman stood stoically in the cold, trying to raise a few dollars for the New Year. "I sold nothing yesterday, not one thing," Semyonova said. "It's very bad right now."

There are many oft-quoted indicators of Russia's suffering economy — the nation's international reserves have fallen by more than 25 percent since August; the major stock indices recently plummeted by 70 percent; and the ruble has been sliding — it's now selling at exchange houses for about 30 to the dollar, compared with 23.5 five months ago.

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My Comment: What is happening in Russia today is what I say in Russia in 1992. This can become very bad for many who have had hopes that their lives will ultimately improve.For everyone else .... a dysfunctional Russia is bad news for everyone else.