Ukraine just punched its bully in the nose. Now what?

Plus: Main Street tops Wall Street. [Bloomberg]( Follow Us [Get the newsletter]( This is Bloomberg Opinion Today, a punch in the nose of Bloomberg Opinion’s opinions. [Sign up here](. Today’s Agenda - Putin is [losing in Ukraine](, which [makes him more dangerous](. - Putin is [squandering Russia’s energy]( riches. - [Banks are suffering the worst]( of the economy. - Time to act as if [Iran talks have failed](. Ukraine Strikes Back Like many of you, I was taught as a child that the way to stop a bully is to punch them in the nose. And usually it works, my sources inform me. But when the bully has nuclear weapons and a fear of being removed, like Mussolini, from both power and living if he ever stops bullying, mere punching may be less effective. Global supplies of schadenfreude rose by 64% over the weekend as Ukraine bloodied Russia’s nose, recapturing huge chunks of land and key towns in a stunning counterattack. The sight of Russian soldiers comically [fleeing]( the front line, leaving valuable [materiel]( behind, has [sandblasted away whatever remained of Kremlin overconfidence](, writes Leonid Bershidsky. Critics, many to the right of Putin, are now openly [criticizing]( the war in Russian media. The concepts of a full defeat and even [regime change]( aren’t as far-fetched as they were just a few days ago. Adding insult to injury, Vladimir Putin is scheduled for a performance review this week with his supervisor Xi Jinping in [Uzbeki-beki-beki-beki-stan-stan](. The last time these two met for an autocrat-chat, at the Beijing Olympics in February, they were on something closer to level footing. The “no limits” friendship they announced opened the door for the invasion that followed. Putin then spent the next six months stepping on rakes and falling into open manholes, giving [Xi the upper hand over him]( in every way, writes Clara Ferreira Marques. But unlike most bullies, [Putin may be at his most dangerous]( when he has been thoroughly humiliated, James Stavridis reminds us. Given that his personal future may hinge on not losing the war, Putin could well use any means at his disposal to avoid that, from further attacking global food and energy supplies to using chemical or nuclear weapons. Things may soon get interesting, and I mean that in the worst possible way. Further Ukraine Reading: [Ukraine’s surge could hurt markets]( if it triggers disruptive Russian retaliation. — John Authers Russia’s Energy Own-Goal No matter the war’s outcome, Putin’s blunder will permanently damage Russia’s economy. The country has lived high on its fossil-fuel hog throughout Putin’s reign, but [the war has spoiled said hog](, Russian energy specialist Thane Gustafson tells Liam Denning in a [two-part]( [interview](. Weaponizing your own product, as Putin has done with energy, tends to discourage customers from coming back for more. Imagine, say, if Papa John’s poisoned your pizza one time to teach you a lesson. You’d probably never go back! Assuming you could tell the difference. Anyway, a fossil-fuel industry starved of revenue will have a harder time pulling the stuff out of the ground. And [other countries will find cheaper, less-explodey alternatives](, David Fickling writes, just as they did after the Arab oil embargo in the ’70s. Even if Russia somehow wins this war, it will end up a loser. Bonus Energy Reading: - President Joe [Biden should bail out the oil industry]( to encourage production and prevent future price spikes. — Matt Yglesias - Efforts to [clean up South Africa’s dirty power]( could be a template for the developing world. — Allegra Stratton Main Street 1, Wall Street 0 Goldman Sachs [cutting]( hundreds of jobs might feel like a grim omen for the broader economy. But the bank is simply reviving a pre-pandemic tradition of culling subpar workers to make room for new, potentially better ones, like [baby sharks]( inside the womb, [doo doo doo doo doo doo](. And [the financial sector is taking the brunt]( of the Fed’s efforts to murder the economy, Conor Sen notes, while for civilians not only is the job market still strong like bull but gas prices are tumbling and home prices are less ludicrous. Pain could be coming to the rest of us soon enough; Dan Moss points out [growth is looking soft around the world](. But the old post-crisis paradigm of Wall Street thriving while Main Street suffers has been turned on its head for now. Further Economics Reading: - Makeup and perfumes are once again proving [resistant to inflation and recession](. — Andrea Felsted - Like last year, people should [do holiday shopping early]( to reduce supply-chain strains. — Thomas Black Telltale Charts With Iran nuclear talks faltering, it’s time for the US to act as if they’ve failed already and [prepare to stop Iran from making a nuke](, Bloomberg’s editorial board writes. It keeps getting closer. [Consumer credit is jumping](, but Jonathan Levin writes it’s only just reverting to the mean. Further Reading [Biden’s superpower is not panicking](, and it’s starting to pay off for him. — Jonathan Bernstein Liz Truss does not [seem to be made for this moment](. — Max Hastings [Pro-lifers should be more incremental](, realizing the public isn’t with them. — Ramesh Ponnuru [China’s surveillance state]( is the future for the West, too, thanks to the power of surveillance capitalism. — Adrian Wooldridge Plastics and other chemicals are probably [making our obesity problem worse](. — Mark Buchanan [Cloud seeding can help fight droughts](, but it’s not a cure-all. — Amanda Little ICYMI Kanye West is [done with companies](. [Hot housing markets are cooling]( around the world. Elon Musk’s ex-girlfriend is [selling college mementos](. Kickers [Plant-based diets prevent]( digestive cancers, a (huge) study has shown. “[Looping” kids with teachers]( for multiple years has benefits. Online art communities are [banning AI art](. Hate hearing people chew? [You’re not alone](. Notes:  Please send AI art and feedback to Mark Gongloff at mgongloff1@bloomberg.net. [Sign up here]( and follow us on [Instagram](, [TikTok](, [Twitter]( and [Facebook](. Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. You received this message because you are subscribed to Bloomberg's Opinion Today newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( [Ads Powered By Liveintent]( | [Ad Choices]( Bloomberg L.P. 731 Lexington, New York, NY, 10022