"The drop in confidence in modern Turkey has led to a massive flight in capital."This will probably do more to undermine Bush's "democracy for theocracy" program in the middle east than Iran and Syria's support of insurgents in Iraq. I wonder if the Saudi's realize that if they succeed in making the world into a Wahhabist paradise, it won't be 72 virgins waiting for them, but financial ruin. Probably not. They think it will happen to everyone else but them, like any other shysters of the spirit.
"Naturally, Erdogan, one of the better poker players in the Middle East, has
refrained from expressing concern... He said capital flight has not hampered
I don't think this is bluffing so much as bald-faced lying. Mr. Thompson (the "Top Coordinator" in Atlas Shrugged) with a prayer rug.
Outside investors worry about Turkey
International investors are worried about a collapse in Turkey's economy. The investors say the Islamic-led government of Prime Minister Erdogan has been playing by such opaque economic rules that disinterested foreigners have no chance to make money in Turkey.
The drop in confidence in modern Turkey has led to a massive flight in capital. Banking sources said billions of dollars have been transferred out of the country. Garanti Bank general manager Ergun Ozen said about $9 billion has been taken out of Turkey during the past few weeks alone. The flight of capital was tied to the sharp devaluation of the Turkish lira, he said.
"There is only one thing I am concerned with in terms of the exchange market
and that is the liquidity crisis," Ozen said. "Lack of liquidity played an important role in the sudden rise of the exchange rate."
Most of the money taken out of the country is believed to stem from Turkey's huge underground economy amid fear of renewed unrest in the country and jitters of a U.S. attack on Iran. That underground economy is fueled by Iran, Iraq and Saudi Arabia and directed to industrialists tied to Erdogan.
Naturally, Erdogan, one of the better poker players in the Middle East, has refrained from expressing concern over the sharpest drop in the Turkish lira against the dollar since 2004. He said capital flight has not hampered Turkey's markets.