My friend Misha tells me that Russia is facing the worst crisis since 1998 and liquidity is drying up.  Tut, tut!  The conflict with Georgia is the final straw, reminding investors of the political risks of investing in Russia.  Many of the leading tycoons raised funds for expansion by pledging shares in some of Russian's biggest companies.  Now they face margin calls from the banks that lent money against shares.  All the oligarchs that are overleveraged and are being forced to sell off.  Hurrah!

According to the president of one of Russia's biggest private banks, the economy is showing dangerous sign of slowing amid accelerating inflation and a slow-down in real growth.

The Russian stock market has fallen 40% since May.  Ouch!  There may be a run on uber-yachts.  Buy one, get on free!.