“I find it hard to believe the collapse of the Turkish lira could ignite a global financial crisis.”
Its kind of like the Greek financial crisis, in that European banks could go under, if a bunch of their loans default at the same time. Euro Governments will likely just send the bill to their taxpayers again.
Turkey is a bigger economy than Greece (triple), but the Turkish problem will be more private businesses going bankrupt, than the Government defaulting on bonds.
Bottom Line though: I also think the world will go on if Turkey’s economy collapses again.
Hi.
“I find it hard to believe the collapse of the Turkish lira could ignite a global financial crisis.”
You’re correct.
Even the collapse of their bond markets won’t cause a global financial crisis.
In my not so humble opinion.
5.56mm