After a severe devaluation, Turkish business circles now discussing the effects of leaving her long implemented fixed exchange regime.

The main concern of the discussion is, the possible effects of the devaluation on the economic sectors. The 'common sense' of business circles say, exporting will boom this year in Turkey and the industry and services will diminish. But i doubt about the 'prejudices' of the common sense. And want to hear your comments!
Best regards..

Mr. Baris Soydan
Istanbul, Turkey

baris_soydan@gmx.net

By Caveat emptor on Tuesday, July 10, 2001 - 01:18 pm:

Nokia extends credit to Turkish telecoms in the "Lucent model" of vendor financing. When the Turkish firms can't repay, look what happens to Finnish firms.

Debt-deflation is rapidly accelerating and no amount of interest rate cuts will solve this. Fiscal and monetary policies have failed.

The world financial reporting system spouts more non-sense reasons to say "GAAP doesn't apply" to Turkey. Fundamentals matter, especially to an imploding Turkish economy. There was no new paradigm, just non-sense about illusory productivity and another speculative bubble. Welcome to debt-deflation and the continuing world depression. Turkey's boom is just another unsustainable mania.

Profits and dividends matter, even to the auditors who own shares in the companies they tout. So much for a reliable financial reporting and regulatory system--the two necessary ingredients for any capital market.

How much further will the real GDP rates be revised downward?

How much did the auditors get paid to come up with non-sense that "GAAP doesn't apply" to the backward companies that simply burn cash? Surely their commissions for getting "additional consulting contracts" justified the non-sense before FASB. Stretched thinly, the audit failures multiply.

Buyer beware.