This Is What A Central Bank Losing Control Looks Like

Tyler Durden's picture

With chatter that over $3 billion has been thrown into the FX market to buy Turkish Lira, it appears the central bank is losing control quickly and Turkish stocks are tumbling. The Turkish Lira collapse almost 400 pips this morning to around 2.30 to the USD - an all-time record low as the combination of corruption, social unrest, and Fed taper are seeing hot money outflows faster than the Turkish Central bank can keep control. This is the biggest tumble in the Lira in almost 5 months as the Istanbul 100 (stocks) drops 2.9% - its biggest drop in a month; and Turkish bond yields are backing up to 2-year highs.



Green arrows show central bank efforts to control the chaos...

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OldPhart's picture

Buy the plucking dip!

InjectTheVenom's picture

I love the smell of central bank turmoil in the morning !

Vampyroteuthis infernalis's picture

The CBs around the world are like the Dutch boy putting his finger in the North Sea dike. The problem is there are holes everywhere and not enough fingers.

joego1's picture

The Fed has a secret plan to use Christies ass to plug our holes.

DoChenRollingBearing's picture

But, so many holes...  Granted, they could plug ONE BIG ONE w/ Christie!

Pure Evil's picture

Soro's must be in there whipsawing the ass raping to such a degree that I'm not sure we'll be able to save the victim this time.

NoDebt's picture

Dow off 200, gold up 20+ and still no ZH article declaring "This is it, boys!  This is the big one!  We're going over!  Everyone hold on!"

Disappointing.  Almost like the Tylers have lost to will to live or something.  Doncha know that's the stuff I come here for?

kliguy38's picture

That's because it ISN'T the end.......its been over for several years now and this is just an illusion for the're livin' on air......don't look down

Pure Evil's picture

Jeeze, first ZH is accused of being doom and gloomer keeping the little people out of the market and denying them of a chance to reap the whirlwind, and now they're being accused of not be doomy and gloomy enough.

You're damned if you fuck her in the ass, and sent to prison if she's under sixteen if you don't, there's no catch 22 here folks, just move along.

BigJim's picture

You must admit the 'And so it begins:' headlines have been a bit thin of late.

I always liked those. Even when 'it' never actually began.

Manthong's picture

..does the well roasted Turkey come with gravy?

El Vaquero's picture

Long Turkish Pinksocks. 

ParkAveFlasher's picture

He'll clog the pipes like Augustus Gloop in the Chocolate Factory.

Renewable Life's picture

That's a big hole!!

What's even more exciting, is the prospect of all these global elites who have been made to think they were supermen by Benny Big Bucks, are about to feel some fear again!!

Watch out, there is no honor among thieves, they will turn on each other in minutes, if TSHTF!!!!

Manthong's picture

?? f'n BLT?

what does bacon have in common with turkey.. outside of some possible consensual barnyard encounters?

Boris Alatovkrap's picture

"BLT" is popular sandwich in America, no? Bacon, Lettuce, Turkey, yes? Is Boris make of epicurean faux pas acronymn?

Jonas Parker's picture

Well done Boris! You'll fit right in here!

Headbanger's picture

If you like your central bank, you can keep your central bank! 

But seriously, this is a bad thing for Middle East tensions with Turkey getting moar stressed out economically they won't take any shit from their whacko neighbors just to their south!

Turkey is heavily armed with some of the most modern military gear. They also manufacture munitions for many foreign nations. And they are long time allies with Germany.

So watch out if Turkey goes on the march into Syria if there's any border attacks against them.

Canucklehead's picture

If you look at logistics, Turkey is a paper tiger.  They may go into Syria, but they won't be able to do much in there.  Germany, Russia, et al would back Syria and the US would sit on the fence.

If you think Turdogan has problems now, wait until he starts a war he can't finish...

TBT or not TBT's picture

As long as there's no endless corrupt UN mission, or NATO thing created out of this there's some hope.

Sudden Debt's picture

Like any priest would say: IF YOU SEE A HOLE, PUT YOUR DICK INTO IT!

Pure Evil's picture

As the famous line goes, "Never let a pre-pubesant rectumory go to waste!"

Manthong's picture

stop giving them ideas ( :-) ...  we are all Jesuits now.

PTR's picture

Travelling salesman walks into a bar in a rural town, sits down and orders a beer.  

As he's nursing his frothy friend after a long, hard day, he see a machine at the end of the bar with a sign that says "Let me be your wife- $.50" with a hole underneath the sign.  

He looks around at the other few patrons, then asks the bartender, "Do guys really use that machine?"

Barteneder replies, "Yeah, from time to time," and goes about his work.

So the salesman sits and contemplates for a moment, then decides what the hell.

He goes to the machine, unzips his fly, sticks his dick in, and deposits $.50.

Suddenly, there's a blood-curdling yell resonating in the bar.  The bartender rushes over to the salesman and the machine and asks, "You alright pal?  The machine break on you or something?"

The salesman replies, "No, the machine works fine, but I didn't realize it was going to sew a goddamn button to my cock!"

Bangin7GramRocks's picture

"So many little holes, so few fingers." -Bill Conlin

LukeWorm's picture

I love the smell of smoked Turkey in the morning ;-)

Crash Overide's picture

Turkey has been around for a while, even before central banking. They will be fine...

TBT or not TBT's picture

Well there are two turkeys. One is dying out. The secular westernized state of Kemal Atataturk. The ascendant one is backward and Islamic. They've been outbreeding the western secular educated bunch for a long time and that's what is doing Turkey in socially and economically. It is redescending into tyranny. Has redescended. It's not coming back out either. The momentum downward is all in the demographics.

Kirk2NCC1701's picture

Wait & see.  The Turkish stock exchange is well known (by the informed) that it is volatile. 

It can have tremendous gains in a year, and almost equally tremendous drops.  Hedge/invest accordingly.

onewayticket2's picture

"if you like your exchange rate, you can keep it!"

Mesquite's picture

Hey, any excuse to get the mkt off the ceiling will do...

mclant004's picture

Does Turkey have an economy and a debt position to recover from this or is it another Greece?

Dont know much about the country except it has a big army and its in a dangerous part of the world!

americanspirit's picture

Hi mclant004 - good questions. Turkey will not be another Greece. Lots of reasons. There is a huge and viable middle class - extraordinary literacy rates, huge small business community, lots of very strong towns with their own financial resources ( eg tax base). The army is professional,and by and large respects the constitution - not a bunch of thugs in uniforms. They sit on top of huge mineral resource reserves, and they contrl vast fresh water resources. Their agricultural sector is very strong. They control a hugely strategic waterway - international trade. And they have lots of gold. Those are just a few points in Turkey's favor. Of course, a really determined set of central bankers with assistance from the likes of JPM and GS can destroy any country.

DoChenRollingBearing's picture

Yes, + $20 or so today alone.

So many great places NOT to invest (China, Turkey)!

wisehiney's picture

They had better go hide out in the "strong" dollar and "safe" US treasuries.

BigJim's picture

Loves me some of that green paper. You can't go wrong with a piece of paper adorned with a dead President!

OT - isn't having Andrew Jackson's visage on central bank derived currency just the bestest bit of monetary  irony? Of all the presidents to choose, I'll bet that gave the Rothschilds the most pleasure. Take that, killer of the 2nd National Bank of the US!

Cursive's picture

The last 12 years have been a slow motion train wreck.  It looks like the horizon is approaching faster now, though....

Save_America1st's picture

and the deepest mother F'er of all cliffs is on the other side of that fast approaching horizon. 

Me thinks Hell is waiting at the bottom of that pit.

teolawki's picture

Nah. Hell is just a pit stop on the way down.

firstdivision's picture

Its time to buy SPY and sell USO, though someday soon it'll be sell both.

youngman's picture

Its that word ....FAITH....its all these paper money economies have left..lose that and you lose it all

eclectic syncretist's picture

Amen to that brother.  When people start to wonder if this shell game is being played without a ball, which it is, the game is worthless.

Calculus99's picture

Corruption folks, this is what happens when the curtain is finally pulled back.

The sad thing is that EVERYONE knew there was monkey business being carried out behin the curtain but as things were ok at  that moment there was no need to look.

Sound familiar?


cliffynator's picture

Didn't the last two World Wars start in Turkey?

Just sayin'...

LukeWorm's picture

WW One : "immediate trigger for war was the 28 June 1914 assassination of Archduke Franz Ferdinand of Austria, heir to the throne of Austria-Hungary, by Yugoslav nationalist Gavrilo Princip in Sarajevo."

WW Two : " is generally said to have begun on 1 September 1939 with the invasion of Poland by Germany and subsequent declarations of war on Germany by France and the United Kingdom."

Just checking  (Wikipedia) ...