Turkish Stock Market hit hard by Crisis covering the world

In spite of the previous statements made by authorities on the contrary, Turkish stock market has been suffering drops for the seventh consecutive day, to total up to a substantial amount of 7 percent.

On the surface, the crisis currently prevailing is associated to Standard & Poor’s cutting the credibility rate for USA which in return has led to another debt crisis in the western world.

So far this is understandable.. The economy of the country (like with many other countries in the world)  is not going to be able to avoid the storm originating from Uncle Sam, the big brother..

The strange part however is the statements that have been made by the officials in charge (since the word has been circulating) as to how the Turkish economy is strong and would not be effected by any external events in the least etc.

Erdem Başçı (the governor of Turkey’s Central Bank) for instance has  meanwhile made a comment saying “Dramatic recent losses in both the value of the Turkish Lira and the Istanbul Stock Exchange are a response to the global sales wave”.

What is going to happen now is that “world leaders are going to get together to ensure financial and economic stability” and finance ministers and bankers are going to promise to “take all necessary initiatives” to encourage growth in the economies of the concerned countries etc.

And the same film (as with the previous crisis) is going to be on ..

In the meantime however, whatever will happen will happen to average stock holder on the market and many a people are already facing the risk of losing “MUCH” indeed (like with the last crisis)..

Seen from one of point of view one could say it is only fair to think GAIN SHOULD BE EQUAL TO RISK OF LOSS or in other words it would be very naive to expect gain (in return for no effort really) without the risk. Thus, crying would be no good for losers, nor would it be fair..

Seen from another point of view though, many people with the hope of lifting up their life standards (a very humanly thought) have been literally deceived (and even seduced) by authorities, again.

To cut a long story short, “stock market event” is a very new concept in the world of many Turks on the contrary to the picture in the western world countries. In case said crisis peaks (as expected) it is very apparent many people on the stock market will be badly hurt.

We hope this damage will stay at its lowest and the (coming) crisis will be a last good lesson for losers on the market to make sure people keep in mind that big and “not earned” gains may always bring along big losses as well.

Editor
BUSINESS TURKEY TODAY

09 Aug 2011