Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported higher prices.
The main cost to Russia, as the column pointed out a couple of week ago, is that its erratic actions put off international investors, leading to lower asset prices and a higher cost of funding.
They argue that such a tax cannot be enforced; that it will depress trading, leading to lower asset prices; and that it will ultimately be passed on to retail investors.
You must pay income taxes on the entire amount converted, so lower asset values work to your advantage.
With a significantly lower asset base in 2016 yoy, revenue declines of 13% year on year are projected.
The lower asset value makes it difficult, if not impossible, for the funds to continue their short-term borrowing.
Investors were concerned that lower asset values in the United States could dampen demand among consumers and companies for electronics, a key component of Asia's export-led recovery.
The spiral of decline - falling confidence, lower asset prices, tighter credit conditions, damage to the economy - is "characteristic of a systemic crisis".
Toshiba said Tuesday that the potential writedown would "far exceed" the $87m first expected, resulting in a "far lower asset value than originally determined".
Third, the domestic expenditures will tend to result in higher interest rates, both long and short, which should reduce investment and lower asset prices.
