The current global financial crisis is among the greatest challenges to the world economy. Unlike past financial crises which were confined to particular regions, the current financial contagion is quickly spreading across continents. The world is facing a deep and prolonged recession. Many assets of banks in developed countries are freezing, they are having greater difficulty in turning their investments into cash.
A global lack of investor confidence is at the heart of the current problem. Once investor confidence is lost, it is very hard to restore. I think that time should not be wasted debating what new institutions or global financial regimes are needed for the future. Rather, all energy must be spent finding solutions to the present situation. In other words, the only way out of the financial crisis is for the U.S. to show leadership. Failure to act quickly will carry the risk of plunging the world into a downward spiral that could turn into the strongest recession or worse.
Being one of the emerging markets, what kind of outlook for Turkey will appear while bringing the most important question to the mind: Will anyone be around to bail Turkey out?