Russian Bull

China, Russia Exceptions to Global Economic Slowdown

Johnthebear...when was the last time you were in Moscow Russia? Yes, while I agree that the oil props up the economy in Russia for now, that is quickly changing. The Russians are re-tooling their auto industry, their oil SERVICES industry, and their agricultural industry. Last month I was in Russia twice and the country is moving forward even more quickly than I would have imagined even 24 months ago.

That said, there are problems; corruption and red tape are still very bad; getting a visa into the country is challenging; and the Ruble (while undervalued) still has the stigma of the 90s attached to it.

As for surviving the global financial crisis...the Russian Finance industry is very simplistic and I think this will serve them well in the future as our banks pass through the housing MBS blow up, into the credit card CBS blow up; and finally into the wave of derivatives failures.