Last time housing was the epicenter of the financial earthquake. This time it may be emerging markets. Turkey looks sickly. From Don Quijones at wolfstreet.com:
“Substantial Increase in the Risk of a Downside Scenario”: Moody’s
The risks are fast multiplying in Turkey’s beleaguered economy. In a clear sign of deterioration, Turkey’s economic confidence index plunged 9% month-on-month to 83.9 points in August, its lowest since March 2009. The country’s currency, the Lira, resumed its downward spiral. And Moody’s downgraded 20 financial institutions in Turkey.
Moody’s cited a “substantial increase in the risk of a downside scenario,” for Turkey’s lenders. The banks affected include a number of foreign-owned subsidiaries such as Turkiye Garanti Bankasi A.S. (half-owned by Spain’s BBVA), Yapi ve Kredi Bankasi A.S. (part owned by Italy’s Unicredit), ING Bank A.S. and HSBC Bank A.S., as well as large state-owned banks like Ziraat Bankasi and Halk Bankasi.
