Turkey fact of the day

…the market value of all Turkish companies traded on the Istanbul Stock Exchange is less than that of McDonald’s Corp.

Here is more from Peter Coy on possible contagion.

Comments

How many countries is this NOT true of?

It may be true for all countries, but it's irrelevant for any particular one because only ex-post we will know. In Economics millions of papers have been written to predict all sorts of crises, but the authors know so little about particular countries that their conclusions are irrelevant. Tyler links to those papers as if they could be useful for understanding and predicting what is happening in particular countries, but Tyler knows so little or nothing about those countries that his speculations are just to entertain his idle readers. Never bet a dollar based on those speculations.

'that his speculations are just to entertain his idle readers'

Not just entertain - this is a first and primarily a PR operation for a certain public policy perspectives.

So finally Americans have turned against Turkey as Bush I turned against Panama and Hungary, Eisenhower turned against Hungary and Clinton turned against Serbia.

Perhaps we should have turned against Turkey 15 years ago, when their help would have been useful re: quelling unrest in Northern Iraq, but we didn’t. We have not turned against them now. Their financial incompetence has turned investors against them. As one economist put it, their vanity project economy under Erdogan is the cause.

Americans have betrayed the Turks the same it betrayed the Hungarians, Batista, Marcelo Caetano, the "Poles", the South Vietnamese, the Shah, the Manchurians and Formosa.

Amerjcans are treacherous as a jackal.

I hope that somedau the world will wake up to America's treachery and embrace Brazil as the true beacon of goodness and light in this wirld. As the Prophet Bandarra has written, the lion will rise and smite the serpent with its heel.

Thiago, you don't want light in there, you need the lion to rise WITHOUT your heel.

This almost says more about the US than Turkey. Why is there such a large market in this country for small, dried out, rubberized, beef patties smashed between over-sized pieces of bread?

Now if we were talking Five Guys' market cap.....

McDonald's is a multinational

Five Guys is definitely better than McDonald's but its not a good burger. Its just a ball of congealed cheese with two grey patties. There fires however are great.

No, they arent. Five Guys is like the Dollar Shave Club of hamburgers.

Congealed grease is underrated.

Only 30% of McD’s revenue is from the US. About 40% is in Europe.

System 1 thinking strikes again.

Actually McD's market cap is more a function of the market OUTSIDE the US, which is almost double their domestic revenue.

Reply to Jeff R

Just a sad state affairs all around, I guess.

Dumb question: does "traded on the Istanbul Stock Exchange" matter here? For example, maybe the star Turkish companies are not traded on the Istanbul Stock Exchange but are listed on the NYSE or something.

Can't answer that but here's another look.

http://www.economywatch.com/companies/forbes-list/turkey.html

All stock exchanges in South America are worth less than Apple... http://www.visualcapitalist.com/all-of-the-worlds-stock-exchanges-by-size/

Such is life in Temer's Brasil

Imposter! And liar!

....take the bait?

Maybe we should have hype as our foremost product. Maybe we should deal in sending American jobs to Red China. I am told it is a great line of work.

Oh sure, because jobs in Brazil are always plentiful! (Americans would be rioting with long term 13% unemployment). Not to mention the fact that Brazil really produces nothing unique. It is a giant soy farm, helped by a bit of oil (that for most part is not even explored properly) and that's about it.

Brazil produces oranges, airplanes and weapons. Brazil has the biggest protein-producing company in the history of mankind. Brazil basically controls Burger Kjng, Heinz and Budweiser. Brazil is invesring heavily in blockchain research and plans to send an artificial satellite to space before next decade ends.

Brazil has never fought a war of aggression. Famous American statesman Dean Acheson has praised Brazil for its efforts for peace. Brazilian former senator and presidential candidate Ruy Barbosa said to French Nobel Prize winer Anatole France that Brazil favors world peace.

"invesring heavily in blockchain research"

HAHAHAHAHAHAHAHAHA!!!!!!!!!

I mean I have no problem with Brazil, but if they are putting a ton of chips into block chain, I wish them luck.

Howe many public companies are there in Turkey? It's actually small. FRED provides a number per million people, which is about five. In the U.S., it has dropped from about 30 in the 1990s to less than 15 today.

The US uses the stock market to a much higher degree than other countries. The ratio of stock market cap to GDP in the US is much higher than in any other region of the world.

The U.S. is in roughly the top five. https://data.worldbank.org/indicator/CM.MKT.LCAP.GD.ZS?view=chart. Details, details...

I was unaware of this excellent link - thank you

I said "regions" not countries. For only tiny countries like Switzerland, Hong Kong and Singapore manage to have stock market capitalization comparable to GDP to the continental sized country that is the US. The unit of comparison would be the city of New York market cap to GDP.

Macro Tourist on Turkey, and other emerging market dollar denominated borrowing increases over time.
https://www.themacrotourist.com/posts/2018/08/15/contagion/

Didn't Zuckerberg, personally, lose that much in just one Friday a few weeks back?

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