Streetwise Professor posts a detailed update on Russia’s financial problems:

“Whichever way Medvedev or Putin [...] turn, they face stark choices. Protect the Ruble – burn through the reserves or throw an already wobbly economy into a tailspin by jacking interest rates. Let the Ruble fall – serious potential for political unrest and the almost certain destruction of Putin’s credibility and reputation as the man who restored Russia from its last default. Bail out the oligarchs – say goodbye to dollars and euros. Let the oligarchs default – say goodbye to Russian control over the “crown jewels” of Russian industry, or keep control of them by repudiating foreign commitments and forget about foreign capital for a long time to come.”