Reuters: 'Disbelief': Investors in Turkey stunned by Erdogan's fight with markets
LONDON (Reuters) - “Shock and disbelief” - that’s how global money managers reacted to an attempt by Turkish President Tayyip Erdogan to re-assure foreign investors about his economic management as the lira went into tailspin.
Fund managers who met Erdogan and his delegation in London on Monday, part of a three-day visit to Britain, were baffled about how he plans to tame rising inflation and a currency in freefall - while simultaneously seeking lower interest rates.
Some said that while Erdogan has crushed his domestic enemies, he would find taking on international financial markets with policies that defy economic orthodoxy much tougher.
A resurgent dollar, rising oil prices and a jump in borrowing costs have caused havoc across emerging markets in recent weeks. However, Turkey has been among the worst affected due to its a gaping current account deficit and growing puzzlement over who exactly holds the reins of monetary policy.
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Update #1: Turkish Currency Woes Put Erdogan in Tight Spot in Re-Election Bid (Voice of America)
Update #2: Turkish Lira slides after Erdoğan says he wants greater economic control (Hurriyet Daily News)
WNU Editor: Turkish President Erdogan's solution to the crisis that he started is to take over the Central Bank .... Turkish lira hits historic low as Erdogan eyes control of country’s central bank (Market Watch). This reminds me of a Ray Bradbury saying that I like to quote in situations like this .... "The gargoyles have taken over the cathedral".
Megalomania is a brain eating disease that dines on the IQ section of the brain. Erdogan is obviously suffering a severe case.
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