I don't think we are at a point yet where what's happening in Turkey can be called an emerging markets crisis. Right now, it's mostly about Turkey, though there are signs of contagion via currency effects and concerns about creditors of Turkish debtors.
But, unfortunately, the Turkish crisis has multiple dimensions from which contagion can occur. And so, the worry is that what happens in Turkey is a harbinger of worse to come. That was my thesis a month ago. So let's go through some of the latest issues.
That sucking sound is US dollar liquidity
First, let me say that this crisis has been building for some time. I actually flagged Turkey as "the country to watch in 2017" 21 months ago because of the deteriorating fundamentals there. But it's taken a long time for the poor fundamentals to ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.