Erdogan Goes Too Far, Market Warns As Lira, Turkish ETF Suddenly Tumble

While so far the Western diplomatic response to Erdogan's unprecedented putsch has been mostly stunned silence (with just the U.N. human rights chief expressing alarm about the mass suspension or removals of judges so far), the market is starting to get concerned, and moments ago the Turkish Lira suddenly tumbled, sliding below Friday's closing level, while at the same time the MSCI Turkish ETF plunged as well.

This is not in response to speculation of another military coup; it is, however, in reaction to market concerns that the Erdogan regime counter-coup has now gone too far, and as a result not only the Turkish economy, but its capital markets, and society, will all be impacted unless somehow the Turkish president's unprecedented scramble for power is somehow contained.

We have truly entered a new normal if capital markets are supposed to keep corrupt, conflicted "democratic" politicians honest.