Lira Collapse To Jump the Mediterranean

The Turkish Lira crisis is fundamentally different than the Russian Ruble crisis of 2014/15.  This one has contagion risk.

Back then no one was worried about the fall of the ruble having spillover effect.  If Sberbank failed, it wouldn’t jump to Europe.  Then again, there was little worry about that since the Russians had more than enough in reserves to cover the debts.

With Turkey, however, there is a real worry about this jumping into Europe. From Zerohedge:

Friday’s fall came after the Fin...