As we already noted sanctions are starting to cut deeper in the Ukraine mess upping the chances of a Russian recession, according to Bloomberg.
The probability of a recession in the next 12 months rose to 65 percent from 50 percent, the highest since the first such Bloomberg survey in June 2012, according to the median estimate of 26 economists in the poll. Russia will enact additional restrictions in retribution for sanctions imposed by the U.S. and the European Union, according to 15 of 25 economists. Of those, 12 expect Russia to target cars and consumer goods.
Now economists are often wrong, but forewarned is forearmed as they say.
The ruble tanked, capital is fleeing and inflation is on the rise as the two sides throw economic bombs at each other. One could look for the glass is half full side and be thankful it's not those other kinds of bombs, but any further sanctions could push the recession cart over the cliff.
Since the start of 2014 Russian sovereign bonds are down more than 11 percent and the ruble dropped 10 percent against the U.S. dollar, Bloomberg reports.
As the sanctions cut both ways, it remains to be seen how staunch European Union members will remain given all the problems there if this continues into fall.
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