Summing up JPMogan's findings, the bank concludes that "in terms of foreign bank exposures it appears that Spanish, French and Italian banks, as well as US and UK banks through contingent exposures, are most exposed to Turkey."The web of debt unravelling?
Zero Hedge
"Self-Fulfilling Contagion": This Is The Worst Case Scenario For Turkey
Tyler Durden
6 comments:
web of debt unravelling?
Only if their CB were to add 100s of bazillions of Reserve Assets in response...
Actually, if the Spanish and Italian banks go down and Germany doesn't rescue them, it's game over for the EZ.
Oh, and The IMF knows this but so far Turkey is not requesting IMF loans.
China is a creditor to Turkey, but they will just restructure the loans and the Chinese banks are government banks anyway. No problem.
They won’t “go down” unless their own NCBs could add Reserve Assets... which idt they can the ECB does this and is already doing it 10s of B per month and the RAs are in surplus Germany so only the German banks are “going down” ... don’t look for them for help the ECB is bankrupting them...
This is you guys big bad “neoliberal conspiracy!”... tell it to Alex Jones with the Lizard People...
According to the IMF, French, Spanish and Italian banks are most at risk if Turkish debtor default on loans they have made. The EZ doesn't have the leverage over Turkey that it has over Greece. Either Turkey borrows the funds from the IMF, which is apparently has no intention of doing since that would give the IMF leverage over Turkey, or someone is going to have to bail out the French, Spanish and Italian banks. Germany would have to give the go-ahead for that to happen.
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