So well. Today is 1st Feb, and prices on all foodstoffs are let down from a punitive government freeze. By 1st March even social products, such as bread and milk, hitherto frozen due to elections, will be let alone.RBC.ru wrote:Central Bank of Russia admits crisis in the banking system
The management of the Russian Central Bank de-facto admitted to a liquidity crisis in the Russian banking system. As "Kommersant" reports, the statement was made by the first vice-chairman of the R.C.B. Alexei Ulukayev on a closed-doors meeting for bankers.
According to the information, Ulukayev stressed that his department will make increasing liquidity a top priority. He said that stability of the banking sector now ismore important than even inflation, a long-time priority of the Russian Central Bank.
According to experts, the rapid priority change signifies a rapid worsening of the situation and an attempt to stabilize the market by the Central Bank.
The statement is also connected to numerous reports of smaller banks to the Central Bank, which experience problems with financing. The offered explanation:measures to normalize the situation taken in Autmn were only available to the largest players.
We'll add that earlier CB denied the crisis alltogether, insisting that it was merely increasing demand for liquidity.
1 Feb 2008
And now this. I remember talkheads crying out "STABILITY!" and "1998 can't repeat! Never can repeat!"
Well, now we're facing a good dilemma: inflation of consumer goods, or collapse of bank liquidity. Or maybe both, if the currency devaluated due to hyperinflation.
I really hope 1998 doesn't repeat, but last year was pretty bad with inflation and if this year "burns up" people's savings while simultaneously having consumption prices rise, it will be a major fuckup.
Happy times. Oh, and thanks America - some analysts probing the situation say that it's due to the banking crisis in the US.