Short Term Solutions

Once in a while the President of Russia says things that are indisputably convincing:

Since the crisis broke last year, however, the government has bailed out some major conglomerates that were highly leveraged, accepting shares as collateral in exchange for loans. Several mid-sized banks were also rescued by the government last year.

Those moves have worried investors who fear the government ownership will lead to inefficiency and corruption.

“State ownership in most of the sectors of the economy should be viewed as an inevitable but a short-term solution,” Medvedev said.

Igor Sechin was also at the forum, I wonder what he was thinking upon hearing that.