1997 Asian financial crisis – Thailand > Malaysia > Indonesia > South Korea > Russia debt default > Long Term Capital Managament…derivative implosion, economy on brink of collapse.

What Happens In Turkey Won’t Stay In Turkey—-Why this Debt Crisis Is Different

In Turkey’s case, the plot line is a little different, however. Where the other debt crises generally involved government borrowing, Turkey’s is mostly a corporate story, making the bailout mechanics more complicated and thus raising fears that what started in a small country with only marginal systemic importance on its face could quickly escalate.

The Smoke Thickens In China

Other global curves, however, are in varying stages further along. Most importantly, China’s federal bond curve inverted at several times last year. And since the RRR cuts particularly the latest this year, money rates have recently plunged. The net result, since short-term government bonds are treated as close money substitutes, is a Chinese yield curve that last year inverted and now clearly displays the bear steepener case.

Don’t Cry For Turkey—The Real EM Disaster Is Argentina

On Monday, Argentina’s central bank responded to the currency chaos in Turkey and other sections of the Emerging Markets, including the ongoing collapse of the Argentine peso: It raised its policy rate by five percentage points to 45%.

Argentina’s annual rate of inflation in June surged to nearly 30%, and indications are that this is getting worse.