EM is the canary for U.S markets. It's going to be swift and violent
— Kyle Kovacovsky (@KyleKovacovsky) August 13, 2018
H O L Y S H I T–> "The emerging market foreign exchange basket just witnessed its largest 4D drawdown since Lehman. That’s -5.3% being a 5.2% standard deviation move over a ten year period," h/t @Convertbond #Lira $USD $TRYUSD pic.twitter.com/eWG94Ne7nd
— Alastair Williamson (@StockBoardAsset) August 13, 2018
The US equity market response takes me back to the "don't worry, be happy" mentality back in the summer of '97…when the SPX jumped 6% in the month after the baht took its bath.
— David Rosenberg (@EconguyRosie) August 13, 2018
Sp in yellow… Thai bath in white… Not sure sp cared much… pic.twitter.com/yYPsBkMXEM
— kite hard (@kite_hard) August 13, 2018
Argentina cuts growth forecast, says it will be closer to 0% 😩
— RANsquawk (@RANsquawk) August 13, 2018
#India should seriously watch the Emerging Market Sudden Stop
Rising Fiscal and Trade Imbalances could be a serious threat.
Trade deficit in June highest since November 2014.
55% of fiscal deficit target for 2019 consumed in April-May
Indian Rupee at all-time low vs USD pic.twitter.com/B4rIVyVR43
— Daniel Lacalle (@dlacalle_IA) August 13, 2018
Italy is now falling apart. This is not good. Contagion! pic.twitter.com/xTD8S2e0Nn
— Alastair Williamson (@StockBoardAsset) August 13, 2018
…the Singapore dollar, Malaysian ringgit, Thai baht and Taiwan dollar are all down 5%-6% too. The contagion is already here, and chances are slim it stays in the FX market alone. <2/2>
— David Rosenberg (@EconguyRosie) August 13, 2018
This issue continues to get worse. There’s no way out of this at this point. As the central bank intervenes, it’s only making matters worse, as it always does. Every currency must return to their intrinsic value. Some are doing so rapidly, other take much longer. Anyone holding onto real assets in Turkey right now is fairing far better than those holding onto their depreciating currency.
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www.zerohedge.com/sites/default/files/inline-images/2018-08-12_12-03-22_0.jpg?itok=vDL_xps4
Turkey promises plan to calm markets in bid to halt lira’s fall | Financial Times
www.ft.com/content/86533b0a-9e44-11e8-85da-eeb7a9ce36e4
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www.zerohedge.com/sites/default/files/inline-images/2018-08-12_12-25-30.jpg?itok=TeVm4HNv
TCMB – Press Release on Financial Markets (2018-31)
www.tcmb.gov.tr/wps/wcm/connect/en/tcmb+en/main+menu/announcements/press+releases/2018/ano2018-31
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www.zerohedge.com/sites/default/files/inline-images/Turkey%20jpm%203.jpg?itok=IwsnhX_e
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www.zerohedge.com/sites/default/files/inline-images/turkey%20greece%20cds.jpg?itok=H4WPCaKJ