Currency down 40%, stock market down 40% - in 7 months.
In dollar adjusted terms, it was the second worst stock market performance on Earth this year, after Venezuela. You would have done better investing in Zimbabwe.
This terrible performance was baked into cake by the policies of President Erdogan, long before there was any hint of US sanctions. Now that their markets, currency and economy are going into a tailspin, they especially cannot afford real sanctions.
US sanctions against “Turkey” so far, were just a tiny warning shot (against two individuals) - but there is a threat of significant sanctions, if the don’t release their hostage, Pastor Brunson.
Yours is a good analysis. The title of the article is very poor - it makes it sound like heavy sanctions have already been imposed, which (as the article body itself makes clear) of course they have not.
Still... After Trump’s tweet there was considerable talk in some quarters about how foolish and inept his “threat” was. Instead, it looks like he knew EXACTLY what position of strength the US is in, and Trump is here well positioned to get another “win” before the mid-term elections.
It is a little unfortunate that some Turks who are pro-US are likely getting the short end of the stick, but perhaps they will be rewarded with a better leader one of these years...