Friday, December 12, 2008
Paradoxically, some of the expected weakening in the retail and real estate sectors has been offset by Russian’s reaction to the sliding Ruble, and the expectation the government will let it slide further. Granted, what we are finding is anecdotal stories, not scientific surveys but they can be indicative of millions of people’s behavior. For instance, if people expect their Rubles to lose value, they are currently purchasing everything from apartments to jewelry as a hedge to a falling currency. These are the sort of things we’ve been noticing, that in the short-term at least, have an impact upon the macro economy.
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