What indeed (defalcation, I assume). Just off the wire:
Turkey's Woes Raise Concerns in Russia, Other Markets
By Justin Carrigan
New York, Nov. 30 (Bloomberg) -- A financial crunch in Turkey that has led it to seek additional international aid has begun to spill over into neighboring Russia and other emerging markets.
Turkey's bond and stock markets have plunged since investors pulled $6.2 billion from the country in two weeks as confidence in the government's commitment to economic reforms weakened and concern about the strength of Turkey's banking system increased. This prompted Turkey to seek emergency aid from the International Monetary Fund.
Turkey's problems, which led bondholders to dump other emerging market debt in recent days to cover their losses, are particularly worrisome for the economies of its neighbors and trading partners. "Last week it looked like an isolated domestic problem for Turkey, but now I'm not quite so sure," said Daniel Beharall, who manages about $150 million at Henderson Investors in London and sold most of his Turkish holdings last week.
Russian Brady and dollar bonds fell 2.4 percent, according to debt tracked by J.P. Morgan & Co. The country's 2030 bond yield widened 24 basis points to 18.46. The Russian Trading System, the nation's main stock market, fell 11 percent to 143.42.
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Carl
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