From Henry

Paul Krugman on hot money flows and Turkey.

There cannot be a crisis next week. My schedule is already full.

– Henry Kissinger

"Qualitatively, this looks like a classic emerging-markets crisis: foreign funds came flooding in, there was a sharp rise in private-sector foreign-currency-denominated debt, and then foreign money turned on its heel and fled. Quantitatively, it shouldn’t be that bad: Turkish external debt is only 40 percent of GDP (or was before the lira plunged), and supposedly Turkish businesses aren’t that leveraged. On the other hand, there’s a political crisis as well as a currency crisis. 

Oh, and contagion among emerging markets.Lovely."  PK.