Russia’s bond market is Achilles Heel as showdown with West escalates – Telegraph

“Markets seem to be betting that the Kremlin can’t let things get worse in Ukraine because it would be insane, yet it is happening it anyway.

“We think there will be a much more serious correction in the Russian markets”

via Russia's bond market is Achilles Heel as showdown with West escalates – Telegraph.

Federal Reserve Bank San Francisco | How Important Are Hedge Funds in a Crisis?

Hedge funds are opaque and highly leveraged.

If highly leveraged hedge funds are forced to liquidate assets at fire-sale prices, these asset classes may sustain heavy losses.

This can lead to further defaults or threaten systemically important institutions not only directly as counterparties or creditors, but also indirectly through asset price adjustments.

One channel for this risk is the so-called loss and margin spiral. In this scenario, a hedge fund is forced to liquidate assets to raise cash to meet margin calls.

The sale of those assets increases the supply on the market, which drives prices lower, especially when market liquidity is low.

This in turn leads to more margin calls on other financial institutions, creating a downward spiral.

via Federal Reserve Bank San Francisco | How Important Are Hedge Funds in a Crisis?.

Why Europe needs the City’s financial weapons of mass destruction – Telegraph

Why on earth would you want to bring back such collective madness?

via Why Europe needs the City’s financial weapons of mass destruction – Telegraph.

From Cronuts to Crumbnuts: Cupcake Chain Crumbs Enters the Grocery – Businessweek

.. things quickly became a frosted mess for Crumbs, which opened too many stores too close to one another and began cannibalizing its own sales even as competitors joined in on the cupcake boom.

via From Cronuts to Crumbnuts: Cupcake Chain Crumbs Enters the Grocery – Businessweek.

Suddenly, Europe Is Taking a Harder Line on Russia Sanctions – Businessweek

How far are Merkel and other European Union leaders prepared to go?

And just how much will Europe Inc., particularly Germany’s powerful business lobby, be willing to stomach?

via Suddenly, Europe Is Taking a Harder Line on Russia Sanctions – Businessweek.

World’s Worst Currency Rout Seen Immune to Ukraine Rate Increase – Businessweek

World’s Worst Currency Rout Seen Immune to Ukraine Rate Increase – Businessweek.

More Good News on Obamacare, Just When Democrats Need It – Businessweek

What accounts for the drop? One big factor is that insurance premiums wound up being about 15 percent lower than CBO had originally estimated.

via More Good News on Obamacare, Just When Democrats Need It – Businessweek.

Meet the New Boss – WSJ.com

“if Republicans have power in 2017 and self-perpetuation is the law’s most impressive accomplishment, it is not likely to continue to be one for long.”

via Best of the Web Today: Meet the New Boss – WSJ.com.

Putin’s 21-Year Quest to Be Russian Guardian Began in Estonia – Bloomberg

“Russia wants to expand the Russian empire using Russian-speaker residents as one of its tools.”

via Putin's 21-Year Quest to Be Russian Guardian Began in Estonia – Bloomberg.

Vermont’s Single-Payer Dream Is Taxpayer Nightmare – Bloomberg View

The politics are impossible, and even if they weren’t, the financing would be unthinkable.

via Vermont's Single-Payer Dream Is Taxpayer Nightmare – Bloomberg View.