June 5, 2010
As the financial crisis continues and sovereign debt becomes a household phrase to the entire planet, we must be grateful that EU expansion hasn’t reached Turkey just yet.
The name calling has been harsh on those afflicted. First there were PIGS, then they became PIIGS as contagion spread. Alas, none of us knows where it might go next. Something that analysts claimed was ‘contained to Dubai’ may soon envelope every country in the world.
(Don’t believe me? Take a look at what happened in the UK banking sector. There was one retail bank over and above the others that had been managed fairly safely and conservatively. That bank was Lloyds TSB. Since it was the ‘safe’ one (something that had been a cause of great mockery amongst the banking and financial community during the go-go years) it was essentially forced to bail out another. Now the UK government owns just north of 40% of it! Change the names, input Germany instead of Lloyds TSB and lets wonder what could happen a few years into the future…)
And then yesterday Hungary appeared on the scene! Hungary? There is no ‘H’ in PIIGS. This contagion thing is scary, it could pop up anywhere!!
So why should we be glad that Turkey isn’t yet in the EU?
Simply, bankers and traders can be ruthless folk. They operate in a harsh and unforgiving world. They would use the most memorable set of initials possible to prove and justify their status above the rest of us. And right now, these initials spell…
Thank goodness we don’t have Turkey in the EU!!financialguy