Wednesday, November 26, 2008

Economic Crisis

The crisis in Russia is just as bad as in America... Lots of lay-offs, big money lost on the stock market, etc... It doesn't stem from the housing market mortgage fiasco, but it does share problematic speculation on futures on the stock market in valuing oil. And yet -- gas is still just as expensive now, even though the price of crude oil has plummeted from $200 a barrel to $50... 

I hear people say that the situation will be bad for a while, but not necessarily to the extent it will be in the USA.

It's pretty gut-wrenching; clients backing out of deals means less work to be done, which translates into not billing the necessary amount of hours to get yearly bonuses, which translates into many expats then not making enough at the end of the year to cover the extra costs of living here -- costs not covered by expat packages (usually school fees, a second trip home per year to the US, and inflation in rent/grocery prices). 

Charities are suffering, too; there's less money to be donated to them. 

The yellow sign in the picture? "Be Cautious! Save your money in several banks in several currencies." At the top of the sign? A note saying the sign is sponsored by the Minister of Finance!

Oh -- look at the picture above again. Don't you just love how people park? And isn't that traffic delightful?


Annie said...

I was proud of myself! I could read the sign...though could hardly believe it! They might as well have added that putting some in old cans under the bed would be a good idea, too.

Glad to hear from you again; I began to worry.

Tina in CT said...

I actually bought gas Tues. for $1.91 gallon and thought it was cheap!

Anonymous said...

Happy Thanksgiving!
I guess from your note, that we all soon may sing together "Brother can you spear a dime"!
It is bad and scary here as well.

Anonymous said...

I should drive to you to fill my car - our gas is still about $2.30, and I think it is cheap as well.

Anonymous said...

"under the bed" is not such a bad idea, it turned out to be our best investment so far. Way better than our 401K accounts.
(OK, I have to admit that it is nor really under our bed, it is just sitting in our bank account, which is about the same, just under someone else bed))

Natalie said...

You would not believe how low gas is here! We have been paying about 1.54 to 1.69, and my sister got gas the other day for 1.49! It's so cheap I almost look forward to going to the gas station when I'm on empty just to see how low I can fill my tank for! It is pretty sad to see so many people out of a job, especially living near the motor*city. Are those smart cars? Or some type of smart car? Did you guys get a chance to vote? I hope you enjoyed your Thanksgiving in Russia and that you got all the foods you love back at home.

Lisa said...

Hi Moscow Mom,

I just started reading your blog... found my way here via someone else's blog, but now I don't remember who!

I adopted two little girls from Perm a year ago and love seeing pictures and news on your blog from Russia. So many fond memories... some not so fond, but the balance is definitely to the positive!

Very well I remember the crazy parking and traffic! And scary driving! The Minister of Finance notice is sobering.

Thanks for blogging and sharing the news and especially photos.


garnet said...

Seemed like it took forever for gas to go down here -- everyone was reporting how much cheaper it was getting in the U.S. and it was still the same incredibly high price here, but just recently it finally dropped. If you calculated in the changing exchange rate it was almost half of what it had been right at the start of the summer. Hope yours will eventually go down as well.