Keeping an Eye on the Russian Economy

The RTS index of Russian stocks is down 22% in two days as oil in free fall pressures the rouble and strains the government's foreign currency reserves.  The situation is eerily reminiscent of 1998 when falling oil prices contributed to a financial meltdown and the re-valuation of the rouble.  The Russian people only recently began to trust banks again, thanks to oil-driven boom times and the adoption of consumer credit.  Another collapse on the scale of 1998 could have devastating repercussions to the teen-aged Russian experiment in capitalism.

Oil:

5-Year Rouble/Dollar: