A Different Stock Market Slide
It's having an effect all over the world.
Russia's stock market is getting into an even steeper decline, having lost a third of it's value since August 19th. (That's not quite a month!) Reuters reported a 17.75% decline yesterday alone.
Chart from Russian Trading System Stock Exchange.
In spite of the tendency to feel a bit of schadenfreude for Russia's troubles I see no reason to celebrate. The economy of the world is now interdependent and no one nation can prosper while the rest decline. If Russia goes down the world will feel it; if America goes down it would cause a world-wide economic depression that would last for many years simply because our economy powers so much of the world economy.
Why is their stock market worse off than ours and declining faster? I would say a lot of it has to do with the political situation with foreign investors uncertain about investing in a country that is quickly sliding from a market democracy to a Fascist/socialist dictatorship. Putin and his puppet have not done a lot to bolster confidence in the rest of the world. There are questions about Bush, but he will be gone shortly and his power has never been as great as the top dog in Russia.
The main point is that it is not just our economy. It is the whole world's economy. We may be the world's flagship economy, but us going down economically is in no one's interest.