Tuesday, July 08, 2003

Enronski: While Russia's growth is to be commended, one shouldn't forget its baseline of near chaos. In that light, while nearly 7% is noteworthy, there's a lot of room to grow. Nonetheless, its flat tax is certainly a step in the right direction. So is this. Of course the problem is you can imagine how many mutual funds will start cropping up now, with local Mafiya dons on the mastheads. "Come! Invest your money with us, comrades. Guaranteed 25% returns. No? Okay, then 48%!" This could be a debacle, and cripple the nascent economy, which is just starting to make an impact on your average citizen. If people start losing their savings to ponzi schemes, it could be a short trip back to the Iron Curtain.

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