Turkish dismay
Summary
FT reporter JP Rathbone discusses a massive pump-and-dump scandal in Turkey involving closed-end funds that promised unrealistic returns before collapsing. The episode details how regulators and officials ignored warnings for months until a sudden run on funds forced a rapid, orderly intervention by the central bank. Rathbone analyzes the contrast between Turkey’s stable foreign policy and its "wild west" domestic markets, noting how the crisis reflects broader perceptions of rigged institutions. The segment concludes with a look at the ongoing carry trade and the political implications for…
Topics discussed
Sponsor: BigData.com
Intro: The Turkish Market Scandal
Guest Introduction: JP Rathbone
Defining the Pump and Dump Scheme
Retail Investor Losses and Madoff Comparison
Why Investors Fell for High Returns
The Open Secret: Warnings Ignored
Media and Political Cover-ups
The Trigger: Regulatory Tightening
The Run on Funds and Bankruptcy
Government Response and Recovery Estimates
Contrast: Wild West vs. Orderly Cleanup
Political Ring-fencing and Accountability
Turkey's Dual Identity: Foreign vs. Domestic
Perception of Rigged Markets and Rule of Law
The Carry Trade and Currency Reserves
Erdogan's Political Immunity
Sponsor: BigData.com
Long and Short: Swimming in the Bosphorus
Short: US 10-Year Treasury Yields
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