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Fitch Downgrades the Ruble to Negative

Emerging markets look like they are in for another rough week, Russia included. The Financial Times is reporting that the rating agency Fitch has downgraded the credit rankings of Bulgaria, Hungary, Kazakhstan and Romania, and slashed the long-term currency outlook from stable to negative for South Korea, Mexico, Russia and South Africa. It seems that the market is unimpressed by the Russian government’s efforts to handle the crisis, which consists of Dmitry Medvedev calling for the extension of term limits and authorizing the police to “crush” any crisis-related protests. It looks like the halcyon days of profitable authoritarianism may be drawing to a close…