Posted To: MBS CommentaryTurkey (the country, not the lunch meat) is the 17th biggest economy in the world in terms of GDP. That’s roughly 20% bigger than the next closest country, Saudi Arabia, and 4 times bigger than Greece. All that to say, Turkey isn’t a completely insignificant piece of the global economy. So the fact that they’re having a rather epic debt crisis is making the news. I discussed this a bit yesterday, and at the time, we weren’t seeing enough correlation spill over from the plummeting Lira to US markets. Not only that, but by far and away, yesterday’s biggest domestic market movements were completely independent. Bonds big move lower in yield followed the Producer Price Index. At that time, Lira were doing nothing. And it was the same story with the quick stock sell-off at 3…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Michael Ayoub, Author NMLS ID 6631