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Do you remember 1997 Asian financial crisis?
Oct 16, 2008 03:28
  • DREAMLIFE
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Although the financial crisis happened in US, its effects has spread through out the world. Two serious bank runs have happened at India's ICICI and Hong Kong's Bank of East Asia recently and it reminds us of 1997 Asian Financial Crisis. Some people worry that this might happen again. What do you think?

Do you know 1997 Asian Financial crisis? I was just in primary school when it happened. So I had very little knowledge about that. Later on, I learnt some knowledge about that financial crisis on books but the info is very limited.
Oct 16, 2008 06:21
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  • WANHU
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In my country, many politicians blamed on George Soros which later our Premier ended up with an unpopular decision, among other things, to tag with US Dollar at 3.80 per USD1.
Oct 16, 2008 19:21
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  • BITTERSWEET
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This is South-East debt crisis and then spread over to East europ and Latin America and Brazil. I heard that at that time Chines gov warned speculators saying that our chips are our U$ reserves, if you want to play, go ahead. So Soros skipped RMB and Shot South East currencied starting with Thais, Korean dollar, etc. After being defeated by Chinese governent in HongKong market, Soros leart a lesson!
Oct 16, 2008 20:20
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  • JIMMYB
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It is unlikely that Asia will suffer another huge financial crisis again though it has been affected by US financial crisis. As you know, this financial crisis, to be exact, credit crunch, roots in US, not Asia. Few Asian banks are involved in the subprime lending crisis. So the exports and domestic consumption might be affected but the financial crisis like that happened in 1997 is not likely to happen again.
Oct 18, 2008 18:27
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  • COOLSPRINGS
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Besides huge USD reserves as bet chips, the other reason that Chinese was not hurt in 1997 cirsis is foreigh investment funds is in the form of physical capital investment instead of foreign hot cash.
Oct 20, 2008 20:50
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  • ICEBERG
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I have little knowledge about 1997 Asian Financial Crisis too. I just remembered a scene on TV: the shelves in the supermarkets in Russia are all empty. Horrible! Maybe, this is a stupid question but I really want to know which country in Asia was hurt most seriously by that crisis?
Oct 21, 2008 21:56
#6  
  • COOLSPRINGS
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Iceberg, I still cannot figure out why Thailand was highly leveraged during 1997 debt crisis?
Oct 21, 2008 22:05
#7  
  • COOLSPRINGS
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The fact that Free floating exchange due to unpeg to USD and hot money flowing back to USA where economy was recovering after oil crisis almost made whole south east Asia bankrupt. IMF bailed them out and conducted debt restructuring.
Oct 21, 2008 22:16
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  • COOLSPRINGS
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in 1997, lots of western financial institutions who invested in South-East Asia almost became owners of those crisis countries instead of creditors after debt transformed to equity capital. Now US gov. is nationalizing part corps through bailout.
Oct 28, 2008 21:11
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  • ICEBERG
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Iceberg, I still cannot figure out why Thailand was highly leveraged during 1997 debt crisis?

I was told that it was Soros who created and manipulated 1997 Asian Financial Crisis. His investment company bought a lot of Thai baht and then sold them short. He said that his investment company once warned Thai baht was overvalued. If Thai government could have realized that their foreign reserves were drained, they would do something in advance. However, Thai government ignored this completely. When the disaster came, Thailand suffered huge losses.
Nov 11, 2008 03:22
#10  
GUEST60146 Now the problem goes to the rich country ,they get what they has done.
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