Real Turkey commentary:  The narrow path from the outbreak to financial crisis

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The world is entering a cold dark winter under the deadly gaze of Covid-19 epidemic.  Yet, risky assets are buying a future where Covid-19 with all its consequences had disappeared overnight, leaving behind no trace of scarring or behavioral change.  This is a frightening disconnect, which had in the past triggered financial crisis.  A collapse in the Wall Street, the freezing  of the corporate or junk bond markets and banks reducing loans on account of a large hit to the capital adequacy are possibilities, which will deepen and prolong the winter recession.  Such outcomes will be a tragedy for Turkey, where President Erdogan started making the right noises about orthodox economic policy and democratic reform after two years of defying reality.

Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and www.paraanaliz.com and has contributed to the financial daily Referans and the liberal daily Radikal.