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Turkish Lira Tumbles On Soaring Unemployment, "Absolute Shitshow" Investor Meeting
The collapse in the Turkish lira is accelerating this morning, with the USDTRY rising above 5.80 for the first time since last October and CDS pushing to September highs, as the Turkish economy continues to slide ever deeper into recession, with the country on Monday reporting that a whopping 366,000 people became unemployed in the last month, sending the country's jobless rate to the highest level in a decade.
With Ankara trapped, unwilling to let the lira devalue on fears of capital outflows even as inflation surges while the economy is urgently in need of a weaker currency, unemployment rose far more than forecast, rising to 14.7% in January - the highest since 2009.
from 13.5% a month earlier, according to Turkstat data; the number of people without jobs has reached 4.7 million people, with youth unemployment jumping to 26.7%, the highest on record.
As Bloomberg summarizes "the severity of the job losses despite a last-ditch spending blitz by the government underscores the economic challenges facing Turkey after it entered its first recession in a decade following a currency rout last year that touched off inflation."
The most recent dismal economic data comes at a time when Erdogan's undisputed control over Turkey appears to be slipping following the recent local elections, where many of the municipalities won by the opposition from the ruling party were those where unemployment is running in double digits, official data show. As such, the political headache for the "executive president" is only set to grow as the country finds itself deeper and deeper in what is rapidly developing as a full-blown economic depression.
Meanwhile, investors were also concerned by ongoing speculation that the ruling AKP will challenge the Istanbul election outcome which saw Turkey's most important city flip control to the opposition, after Erdogan’s candidate lost the mayoral race in Turkey’s largest city to Ekrem Imamoglu, a blow for Islamists who had controlled Istanbul since 1994. “We are going to ask for fresh elections in Istanbul by using our right to make an extraordinary objection,” said Ali Ihsan Yavuz, a deputy head of the AKP.
The silver lining: as investors once again shun Turkey, its currency still remains solidly higher than the lows it plumbed last August. The not so silver lining: this will likely not be the case for long, with the lira sliding to 6 months lows as Turkish CDS* continue to blow out ever wider.
https://www.zerohedge.com/news/2019-04-15/turkish-lira-tumbles-soaring-unemployment-absolute-shitshow-investor-meeting
CDS= Credit Default Swaps
What is a Credit Default Swap (CDS)?
A credit default swap (CDS) is a financial derivative or contract that allows an investor to "swap" or offset his or her credit risk with that of another investor. For example, if a lender is worried that a borrower is going to default on a loan, the lender could use a CDS to offset or swap that risk. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse the lender in the case the borrower defaults. Most CDS will require an ongoing premium payment to maintain the contract, which is like an insurance policy.
https://www.investopedia.com/terms/c/creditdefaultswap.asp
or in JPM's case it is like taking out an insurance policy on your neighbor's house and then setting it on fire.
from March 23rd:
Turkish watchdogs to probe JP Morgan after lira plunge
ISTANBUL (Reuters) - Turkey’s banking watchdog said it had launched an investigation into JP Morgan and other banks over complaints it received after the lira plunged more than 4 percent and the main share index fell sharply on Friday.
https://www.reuters.com/article/us-turkey-banks-idUSKCN1R40OS
had that same problem anon. Can't help someone who refuses to help themselves. Sponges are sponges no matter. Failure to anticipate should not have the cost to you. Sounds like you did what you could. That's it…draw the line.
ya fuck you too hillbags. How much of that money from the foundation did you keep?
Fuck you very much
Helping is ok. Putting yourself in position for b'ruptcy not good. Not going into details but enough is enough. I have had help at points in my life from parent's for sure but what I gave back far outweighed it because of the appreciation I showed for getting it, they, of course, never saw it that way -and my example does not involve them, spouse's.
fuck these people bagging on you. They have never lived it. Live it first then judge.
Don't know you …but I know you FWIW.
They keep saying you will need help and to stick it out. Where is that supposed to come from?
o7
o7
piece of advice. Take a small fee for managing it and write up an agreement. Even if it's only a dollar as this will show you are not fucking around with that any longer. It is very difficult for a younger son/daughter to try and convince a parent of anything. That may help. Just having that conversation may help..it may not. Good luck anon