NP - Krugman: Petrothoughts (Via Kevin Drom)

[alice malice]

Why not? Putin can go quietly. That looks like the plan. The Putin
plan failed. His popularity is down, he's not going to invade another
state, the Ukraine solution is on the table and more sanctions are
coming. The price of oil should find equilibrium next year, somewhere
between 50-75 on Brent. Russia is selling off its dollar reserves to
put a floor under the USD/Rub @ 63, no capital controls yet, but the
Russian markets have priced everything short of CC in, so the high
yield bond market bubble and oil pop....and we can expect Russia to be
downgraded to junk next year. A slow and quiet deflation, a deep and
protracted recession, and Mr. Putin's ego and his plan will quietly
blow away as Russia cuts deals with the West. China won't help and
even Cuba and the Pope are shaking hands with Obama. Bye-bye Putin. On
to Syria.



On Wed, Dec 17, 2014 at 2:47 PM, rich <richard.romeo at gmail.com> wrote:
> no matter what one believes, an unstable Russia is not good for anybody. and
> Putin and his fold will not go quietly
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Pynchon-l / http://www.waste.org/mail/?list=pynchon-l