When, in 1998, the Russian government defaulted on its debt, provoking a severe economic crisis, Yukos barely survived.
Local authorities are being barred from running up debt, provoking wrath among the prime minister's own Social Democrats.Protesters are already taking to the streets.
Investors are scrambling to unload unwanted debt, provoking sizeable daily moves in bond prices.
But the Fed added to the nation's debts, provoking talk that it was testing global faith in the dollar.
Defaults never rose above an annual level of 6%, and the mortgages that FirstPlus managed to securitise have done well.Its real troubles began in the autumn of 1998 when the credit markets seized up after Russia had defaulted on its debts, provoking the LTCM crisis.
The Financial Stability Board, which was created by members of the G-20 to work on ways to avoid future financial crises, said in a report that overreliance on credit ratings had contributed to the financial crisis, as downgrades of certain debt issuers provoked market stampedes.
In the long run that should save the government money, but first it produced an extra annual bill equal to 1.5% of GDP.In hindsight, Convertibility was doomed once Russia's 1998 debt default provoked a stampede of capital from emerging markets.
The recent financial crisis and the subsequent European sovereign debt crisis provoked a large flight to quality among investors and caused strong upward pressure on the Swiss franc (CHF).
Mr. Obama's slippage in part reflected defections from his party base; Democrats objected he had "caved" to secure Republicans' support for an increase in the nation's borrowing limit, without which the United States might have defaulted on its debts and provoked a global crisis.
Still, European leaders are having big problems arriving at a solution for Greece, the country that provoked the debt crisis in the first place.
