Everyone knows the story of the wings of the butterfly in Hong Kong causing a storm in the States. The Wall Street Journal had a story which reminds me of this phenomenon.
"A tiny default by a Russian aircraft-leasing company is sending ripples through the much larger market for the country's debt. The default by Finance Leasing Co. on $250 million of bonds is the first by a Russian state-owned company on foreign debt since the country's 1998 financial meltdown. That is rattling foreign investors, who worry that Russia could allow many more companies to renege on billions of dollars of debt while it grapples with an economic and financial crisis. "It's clear that the capacity and willingness of the government to...provide support to a large number of entities is declining," says Ed Parker, head of emerging Europe sovereigns at Fitch Ratings."
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