Credit Market Contagion

Credit Market Contagion
Turkish lira banknotes are pictured at a currency exchange office in Istanbul, Turkey August 13, 2018. Reuters/Murad Sezer
Dan Oliver
Updated:

To understand the routs in Turkey, Argentina, and other emerging markets, one needs to understand the anatomy of a credit bubble. They are all the same, although the companies and countries caught up in them are different.

Credit conflagrations are normally ignited by a small, wrong-footed speculator. Those with the thinnest capital have the most to win and the least to lose by levering up marginal asset as a bubble drives interest rates lower.

Dan Oliver
Dan Oliver
Author
Dan Oliver is the principal at gold mining fund Myrmikan Capital.
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