The 1997 Crisis: The Greatest Asian Crisis in History? - VisualPolitik EN
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In the early 1990s, the countries of Southeast Asia along with South Korea seemed to be taking on the world. Banks, investment funds, pension funds, insurance companies... Everyone wanted a piece of the action and the money was pouring in. Thailand, South Korea, Malaysia, Indonesia and the Philippines were the trending countries.
However, on 2 July 1997, everything fell apart.
On that day, one of the greatest financial cataclysms in human history suddenly began to unfold. In just a few months, the entire world would see these once booming and prosperous economies on the verge of collapse. The stock markets collapsed, the currencies depreciated to unimaginable levels and the recession hit the economies of these countries. Suddenly prosperity gave way to unemployment and widespread business failure.
In this new video made in collaboration with Value School, we tell you what happened and why one of the greatest financial crises of all time occurred: the great Asian financial crisis of 1997.
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I like how every background song was some bullshit stereotypical asian song from the 1950's.
Sped up x2
So you wanted kpop or what?
LMAO
As an Asian I'm laugh so hard 🤣
LOL Right? The instruments sound very Chinese and China wasn't even a part of the Asian Financial Crisis.
Even in these days, there are still many unfinished buildings left in Bangkok as a reminder of 1997 Crisis. A lot of people, working in financial and business sector, were sent into poverty overnight. However, people, who worked in public sector, were generally able to survive the crisis intact.
Jakarta was luckier then. While most of construction projects were halted because of the 1997 crisis and subsequent political chaos, most of them resumed their development and managed to be finished in 2000s.
Here in Davao City, Philippines, there’s this hotel called “Durian Hotel” which was left abandoned for years after the Financial Crisis. And during the Pandemic they finally got the place in progress for a rebuilt.
the scar left by the crisis is way too hard to accept
similar condition in my home town pal, only civil servants and SOE's employee that survived the 1997 econ crisis.
Crisis manufactured and exported by USA 🌟😀
This also caused the Russian Default of 1998. The rouble went from 5-6 per dollar in 1998 to 30 per dollar in 2000.
Random fact: In Mexico we also had crisis due to capital flight, but a little early (1994); when the peso per dollar parity went from 3 to 7. (Of course, doesn't seems as terrible as going from 6 -7 to 30, and at least in the case of Mexico the argument could be made that the peso was overvalued)
This also caused something that was nicknamed as "Tequila Effect" (the crisis due to capital flight expanded to other countries that didn't have a real reason to have a crisis at the time but probably seem similar to investors, like Brazil)
It's not just that, it's also the GKO short-term government bonds that the government sold to a lot of financial institutions. These GKOs were essentially a Ponzi scheme. Once the government could not pay, the whole thing came tumbling down.
@@rezajafari6395 True. Also, the currency was at fixed rate but they wefe forced to get rid of it because of the default.
@@daple1997 yeah. Fun fact - my dad (he worked at a bank back then) predicted the collapse of the GKOs, and sold many of the GKOs the bank had without asking the boss. The boss called my dad to his office and told him to take some time off. This was on Friday. The next Monday was Black Monday - the GKOs collapsed and the country was in crisis.
This is a propaganda channel
th-cam.com/video/0i8f16Mso0o/w-d-xo.html
The impact of this crisis reached beyond the financial world. In Indonesia, it triggered a violent social unrest and a major political reform
Because of the crisis, Suharto fell lol
@@FRISHR well atleast theres good part of if lol
Indonesian Kids nowadays do not know the hardship of krismon. Yes, it was being taught as an event or tragedy in the history classes but they can't know how truly feels and horrible it was...
@@BG_Low don't put me in the same bucket as those tiktod kids.
@@BG_Low Yes, I still remember how horrible it was. We couldn't go to school since all the schools were closed. I went to the supermarket with mom and it was guarded by the army with rifles. It was hard to find baby formula milk for my sister and everything was so expensive.
They should have consulted North Korean experts.
Facts
Yes dear leader.
The world interested in only the real Korea.
I'm sure many already experienced starvation without totalitarianism.
I mean if there is one thing North Korea has never suffered from it's overinvestment
Talk about SEA and South Korea.
Post 50% of China images.
Propaganda channel.
EASTERN CONSPIRACY!
Lol 😅
Exactly! China went through unscathed! In fact, Soros lost money in Hong Kong!
The absence of Simon is the Greatest Crisis in TH-cam history
Thanks for flicking a burn
He is on another channel
9:06 Ah yes. Talks about Southeast Asia and South Korea, while showing stock footage of Shinjuku, Japan.
Now lemme tell you about Germany, while showing stock footage of the Eiffel Tower.
I disregarded everything he said as soon as I heard the openings music
My family lost our house to foreclosure in 1997 followed by our cars.
I was a student at the time and i still felt the effect
its better if you didnt have it in the first place but when u have it and lose it it feels so bad, i know ur feeling cuz i also lost many things
Sorry to hear that.Crisis manufactured and exported by USA 🌟😀
This was the hardest financial crisis that Indonesians had been through in recent memory. Five years following the crisis, the country was in chaos. Prices went high, the country almost disintegrated, the new order government fell, a province seceded, two other provinces revolted, inter religion riots in Ambon, and inter ethic riots in Kalimantan.
We went through the crisis with new freedom, democracy, and reformation of the country. However, many of the older generations still haven't recovered and they think we are in crisis even after 23 years
I'm just beginning to learn about the crisis. Didnt realise the impact until I started researching. Which province seceded?
@@bacondren4129 It was Timor Timur that is now Timor Leste
its so hard to accept the fact and move on, as a younger generation we have to prepare for that situation to come someday (covid was also bad)
It took five years for our percapita to return before crisis and without this maybe President Suharto was still in power until his death in 2008
Crisis manufactured and exported by USA 🌟😀
Forgot to mention tht Malaysia rejected IMF bailout and imposed their capital control and pegged their currency to the Dollar
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
@@marybailey7881Prob caused by greed honestly. The economy was built on debt and investors foresaw what was happening, causing them to stop investing. They didn’t have any funds and the government couldn’t continue pegging (too expensive) so they had to let the value float.
Ya,i am still remember that and South Korea has to agreed IMF term to open up their economy to foreign company .also thailand trying to soften the onslaught of their currency by imposed a two prong approach of their currency baht but still disastrous.
“The biggest Asian Bubble in history?”
China: *Are you challenging me?*
There only a bubble after it bursts. There is no such thing as a bubble before the burst. You are just speculating, or just parroting opinions of your hero, Gordon Chang.
@@lie01234 Nope, bubbles can only be determined with certainty after a collapse, but exist before a collapse.
Most post-COVID economic production has been inventory builds and investment due to weak export orders: www.bloomberg.com/opinion/articles/2020-08-20/how-an-ordinary-disaster-is-flooding-china-s-covid-turnaround
The price-wage ratio of Chinese real estate is reaching the levels of the largest RE bubbles in history while the process of urbanization in China is nearing its conclusion:talkmarkets.com/content/global-markets/why-the-fate-of-the-world-economy-is-in-the-hands-of-chinas-housing-bubble?post=127081&page=2
ghovexx.blogspot.com/2017/03/the-fate-of-world-economy-is-in-hands.html
@@innosam123 It has been near burst by your pundits for as long as China opened up. When do you think the bubble going to burst?
@@lie01234 Dunno, how much cash can you dump into an economy before the economy just dies from the imbalances? That’s one of the big economic questions.
China has dumped trillions into the system every time something looks like it’s going to go bad. This was before COVID. Almost every other central bank eventually gives up and at least lets a partial correction happen in order to relieve the pressure. If you don’t... well, the last time that happened was the 1997 crisis, and it was not pretty- the 2008 crisis was tame compared to the 1997 Asian crisis or 1991 Japan crisis.
Considering there are several high-profile SOE defaults occurring, there is reason to believe the end has already begun.
It’s not that I even want this. A crash in China would trigger another global recession right after the global economy is in a weak state after COVID.
And the primary way the CCP takes attention away from the economy is by lashing out against the rest of the world.
Not a great combination.
Thank you for linking the Bloomberg "opinion" article, the author has more "Coming Collapse" opinion piece on China I see.
I'm doing research about this crisis, thank for simplifying
Probably a bit too generalized but they hit the beats on the economical side just right.
May i get data?
If you notice in the charts, the Philippines recorded relatively lower losses in their currencies and stock exchange compared to the others. This is partly due to the remittances of foreign currencies from overseas Filipino workers which helped shoulder the shocks and negative impacts of the financial crisis
Yeah true same in 2008! The biggest impact when it comes to the economic crisis in the recent decades was covid!
Yeah supporting their countrymen from overseas helps them to recover from the crisis much effectively.
It's like we're about to do the what's called pro move
I can understand this, my relative from oversea sent money during the lockdown and helped my family a lot
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
He completely misses how investors have historical shied away from South Korea due to the lack of rule of law against Chaebols. And that was once again proven several years ago when the heir of Samsung single handedly bent the South Korean government to his will. Even though the heir to Samsung got a slap on the wrist, institutional investors still shy away from South Korea. When a South Korean Chaebol wants something their going to get it.
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
Rule: If you are borrowing in a currency other than your own and owe debts in another currency, you need to be concerned with your level of borrowing or you are one shock away from ruin. If, however, you borrow in your own currency and all debts are owed in your currency...that is not much of a worry unless you see inflation begin to crop up.
An exacerbating factor of the Asian crisis was due to the premature 'liberalisation' advice of the world bank and IMF to borrow in foreign denomination and to remove capital controls.
China, whilst a debt ridden mess in many ways - including the same real estate bubble fundamental cause which led to the 1997 crisis, holds almost all of it it's debt internally and imposes capital controls, so when it's stock market bubble burst in 2015 it did not see the same degree of crisis many were predicting.
Just adding an Indonesian perspective. On October 27, 1988, the government launched package of deregulation and liberalisation the financial sector. While deregulation had already strated in 1983, this one was the one that worked. They eased the capital requirement to found a bank. One only needed 10 billion rupiah (around 6 million US dollar at that time) to have a bank. It was a strategy to counter the 1980s stagnation caused by sudden fall of oil prices and tightening monetary policy in the United States.
As the result, there was a boom in banking sector. In just six years, the number of private banks rose by 150%. Everyone was enthusiastically entrered the banking industry. It also helped boosting the economic growth.
But, it brought some weakness. Most of the banks provided credit to afiliated parties, mostly conglomerates, exceeding the limit. While the rupiah started weakening in August 1997, those who borrowed US dollar before started to struggle to pay back. While the IMF entered in October, it suggested to close some banks. The government closed 16 banks but it triggered a bank run because people were worried about their savings.
The first half of 1998 saw massive disaster to the banking system. Even BCA, the largest private bank, almost collapsed because of massive bank run (althought it mainly caused by the sentiment towards the New Order regime; the bank was partly owned by Soeharto's children). BCA had to be taken over by the government because it was to big to fail.
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
Where was this video 2 months ago when I was studying development at uni😭. Great work as always guys loving the stuff you guys cover
The 90s was a bad time in terms of economies. A LOT of countries in that decade had financial crisis. On every continent there was a big issue. Ireland, Japan, Zimbabwe, Rwanda etc.
Didn’t know how bad it was
So... no one mentioned the fact that the crisis also toppled the ruling Indonesian government and caused a huge political crisis as well?
Everyone blamed Chinese during 1997 crisis. It was shit show.
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
You forgot to add one of the biggest factor.... A lot of crony capitalism and corruption. Check out the term " bamboo network?"
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
@@marybailey7881 Western money pulling out was the trigger but i would not say is the cause. If the other countries in Asia had healthy banking and financial systems, it would have been a recession not a crisis regardless of whether the motive is political or not.
Singapore is a good example of what should have happened. When western money was pulled out, the government and state owned companies immediately filled up the gap left behind. Singapore could do that by a) Being very conservative and not get into debt beyond their means and b) having a low corruption system so capital could flow to where it was needed.
As economist later on have said, the Asian banking system then was like a car traveling high speed with no suspension. Ok on smooth roads, but a small bump will cause it to crash.
@@jayshen84 but similar thing has happened in South American countries, Venezuela, & Argentina , for example. The mainstream news blames it on "Economy crashing" , but doesn't explain the political side of what happened. But basically I am right that the IMF is like a banking cartel that tries to coerce others politically and economic policies. If they don't give into the manipulation, coercion, then they get "punished" by these banks pulling their money out. Look , it also happened in Russia in 1998 and I think in 2022?
@@jayshen84 this guy doesn't hint at all that there is political blackmail involved,? why?
@@marybailey7881 If you mean that there was a concerted effort by western governments to cause this, I will not go so far as that. Overall the crisis was dire for everyone and caused a domino effect that reached every country, including the US. Most people in the west did not feel it because the West bailed out very swiftly the institutions affected and prevented it from reaching the everyday man.
But some economists say that the bailouts by western governments was only just covering up the fire above ground while ignoring the fire underneath. They think that the Asian crisis really was the start of a wave of crises that the world governments have yet to be able to contain. Some say the dot-com bust, subprime crisis, Euro crisis and the potential major recession next yr are all just the same fire that has been spread since the Asian crisis.
Unfortunately, some people benefit from seeing the world burn and might be the ones feeding the fire. But having studied this topic a lot, I would add that the issue is very complex and dynamic. I doubt that this is caused deliberately but more of the result of human greed taking advantage of opportunities. Only historians, maybe 500 years from now will be able to analyse the situation.
I think Japanese economy in the end of 80s is a biggest economic bubble in Asia. Nikkei never recover from its peak in that time, unemployment rate increased dramatically, government debt from 30% gdp in the end of 80s to above 200% gdp in 2000s. High unemployment at this time make young people difficult to marry and drag Japan to demographic crisis.
Japan has lowest unemployment rates now, Also debt is owened by its citizen and in yen not in usd.
I think it's easy to get a job in japan since there are many hiring program from japan for people in developing countries. The highest problem in japan is the working culture that is fucked up. They work 10am to 7pm. They have to be punctual when going to work but forced to be not punctual when going home. The workload is terrifying and it's really tiring. How could they burden their life by making babies?
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
The Japanese economy has few problems. We should be more concerned about the Chinese, Russian, and Korean economies.
Looking around the world in 2023, the Japanese economy is strong.
Inflation in the West, Russia, China, and South Korea is serious.
Why are you playing Chinese music in the background?
Do you know it's name? Sounds good
@@ankitaharwal5886 The Fisherman's song at dusk?
Because Chinese=Asian
pretty ironic considering the crisis began in Thailand
What makes you think it is chinese and what kind of so called "chinese" are you referring to?
I like this new more relaxed video style.
Me too more understandable too.
I never heard a good explanation about the 1997 Asian Crisis, nice!
A lot of the economics and the terminology went over my head in this video. Economics just isn't my strong suit. Good video. I just couldn't understand all of it
They burrowed a lot of money in dollars when their money was backed by dollar. The money was not backed by dollar anymore. Their money lost a lot of value. They could not pay back the loan in dollars. Therefore everyone pulled out their money from investments. Therefore the crash happened.
This is very common.
If the majority of people believe something has a value than it does if they believe it does not have value it doesn't.
U need to pause and understand every line carefully and analyse it then I am sure u will understand what he said
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
The amount of times the premise of this video was repeated really hurt.
"One of the greatest economic downturns ever happened and here's why"
Without saying why for ages. A lot of fluff , you guys are usually better than this!!!
Indeed; so repetitive. I guess it's also a way to make the video artificially longer.
amazing video , also cover subjects like 1929 and 2008 financial crisis which cause trouble
all over world
i’m here to know about imf crisis after watching “twent-five twenty-one” !🙋♀
South Korea is still arguably being affected by this crisis. The youth unemployment rate is unprecedented and GDP growth rate, although it's still 'not bad' per se, is visually slowing down. Not to mention that it's almost impossible for young people to buy their own house these days. Of course, all these problems cannot be attributed to the crisis that'd happened decades ago, but still some problems can be all traced back to this fateful period. Hopefully, the recently signed RCEP could ignite the economic flames that the region desperately needs.
And unfortunately those fools still pick the worst possible leaders and be proud for it.
let them suffer I say, those who cannot learn from their mistakes deserves to suffer.
@@alienelephant4721
South Korea was the fastest country that recovered from the 1997 Asia Financial Crisis. They took the IMF bail out and fully paid it back faster than any country and increased their credit rating in a short time whilst other countries in Asia suffered for much longer period due to poor governmental management and corruption. South Korea can be looked at as a success story during the Financial Crisis, economists around the world actually study and learn at how South Korea recovered quickly.
This OP has no effing clue, neither do you.
Youth can't buy homes because the capitalist boomers greedily invest in property
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
Very nicely explained,thanks brother.
Your explanation is simple and easy to understand. Huge love from India
They probably had to quickly release this video before the impending PRC collapse makes the one of '97 look like nothing.
Hope it doesn't happen. The world economy is already weak right now.
care to elaborate, please?
Five months later, what happened?
The way our former Prime Minister and economy experts handled the crisis back then was impressive.
From Malaysia.
Indonesia got the worst effect but 99,9% of our people dont even know what was happening. We completely inept and scapegoat Chinese for this.
Wow thanks for this ☺️
The video was not extensive enough, I am still lost on what now was the exact trigger
No mention of GeorgeSoros who was quick to jump in and buy up vast amounts of local currencies at bargain rates, He actually admitted that he did that. I lived and worke in Thailand from 1992 to 2020. When the Baht crashed, it took about 15 years for its alue to go back to a similar rate in 1996.
Soros lost money in Hong Kong as a result!
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
@@marybailey7881 I did read that the whole of the asian inacial crisis was caused by a rumour that Thailand's money supply was at a dangerous level. Later to be proved wrong. But the damage had already bben done. If you read 'Shock Dctrine' by Naomi Klein, this was actually triggered by the West, lead by the USA to open theirb economies to western companies. Untul then, there were no Tescos or Carrefour in Thaialnd. But, it is true abot George Soros buying uo currencies and so devalueing them.
@@robinhazell6019 I wonder about other "financial crisis"...such as the Argentinian Financial crisis, etc. are these basically due to withdrawal of "loans" or money by the IMF? as they are basically a western banking cartel, am i right? What political issues maybe caused the 2001 Argentinia crisis.? If , for example, Jair Bolsonaro in Brazil decided that he was going to take over the gov. due to his belief that the elections there were stolen, then what would the IMF do? basically similar to what they did in Southeast Asia in the late 90s?
@@robinhazell6019 also the Venezuelan crisis .where there "economy crashed" was basically due to money being pulled out over a politcal dispute? but we always just hear that the Venezuelan economy "crashed", but don't hear or read much about the political reasons that maybe caused "investors to pull out of the economy"? same happened in Russia in 1998? What was the political reason for that too i wonder? Why this video doesn't talk about the POLITICAL reasons for the "Financial crisis"?
Great explanation!!!
My dad was only 18 years old in 1998 when the crisis in Indonesia getting worst and worst,my dad said it was horrible on Yogyakarta and Jakarta
The book the dollar crisis of Richard Duncan, published in 2003,describes the Asian bubble in detail. To me the same problem is occurring now in China. We will see.
Is that the same guy who wrote "Corruption of capitalism" or something. Reading from that guy is funny now. Ah... The good old days you can predict economic growth with worrying that the president will suggest bleach injection and kill 200k people, crashed the world economy. No model work anymore, not Cobb Douglas, not Kemp Benedict, not Rodrick... There are 20-30 hundreds model and prediction out there, one of them is bound to be right for today, but will definitely useless tomorrow... China is not gonna collapse any time soon, when they do it will be the end of capitalism, so... What now?
@@bachvandals3259 I learned a lot from Richard Duncan. His main thesis is that nowadays capitalism no longer exists. It has been replaced by creditism. Investments have been replaced by consumption and fiat money creation.
@@CaravaggioRoma The Chinese mastered the fiat game. Capitalism doesn't work in the west anymore, union, high wages and dwindling the of educated population. You either export capitalism to somewhere else and socialized your economy like the Scandinavian or drown in cribbling debt trying to do give your population half ass social benefits and funding useless construction trying to stimulate your dead economy. Capitalism die out with high mechanisation of the economy, it work back in the 1800s, so it's what it's now, dead. It's not coming back to america anytime soon, not when child labor and slavery is still illegal. Duncan doesn't give a real "way out" he just scream DEBT and left it there like most libertarian.
@@bachvandals3259 indeed he gives a solution: invest trillion of dollars in r&d since the interest rates are so low due to the globalization environment we are living in. This is what China has been doing in the last 30 years. And in 2019 China overtook the USA on investments in R&D.
@@CaravaggioRoma Wait a minute. US 2019 d&r exp is 511 billions, China is 275. No, that's not how d&r work. China is 10-20 year ahead technological wise, you can't compete with them in those area. For god sake phone made in the US can't even receive 5G before October, it would have been better if we just do what they do before and reverse engineer those thing. This is what i mean when i say dwindling educated population, our "researchers and scientists" can't even understand how their technology work, the "good" researchers are just Chinese professor who sometimes work in the US. Why don't just skip all of that shit and start national fund to invest in those Chinese company. If you can't compete with them on production scale, prices or technological advancements, just buy them, it's not that complicated.
Maybe another video on how the effected countries recovered from the crisis, and a comparison on how each country did?
The policies implemented since? How they shaped the region afterwards?
💯
I was too young to understand it then thank you for explaining to us.
This video has slightly better ediitng than the other videos on this channel. Like I didn't get yelled at halfway through it nearly as much.
Why was SG not included on the graphs? I recall we were also pretty badly affected
damn good video. Thanks.
Please do a video on the Golden Decades, the economic prosperity and sharp rise in the standard of living enjoyed in the western world between 1945 to 1975, plus also do a video on the Japanese, German, and Spanish economic miracle, thanks.
One day I want a Liverpool scouser to do an episode 😂😂😂😂
We’ll need subtitles
I know a Northie that might do it. I forget if he's actually from Liverpool.
A series of videos should be made on South- asian economics !!!
We have 49 countries in Asia don’t make whole Asia into five countries
Yeah but how would u classify it? It's not just a SEA one since Korea is in it.
this currency denomination effect is ,sadly ,permanent. i remember clearly that Rupiah went down from 2,500 per dollar to 17,000 at the peak of the crisis. in the 2000s rupiah value fluctuated between 9,000 to 15,000 and now hovers around 13.000-14.000 per dollar.
The fixed rate of rupiah to usd was the reason why Indonesia was hit really really bad during the financial crisis.
Last time I was this early, Hong Kong was still owned by the Qing Dynasty
I don't understand. What's the point of being early if you have nothing to say/
@@shakiMiki you are the point lol
I miss Simon
Much analysis has been made on the causes and destructive aftermath. Very little has been said about the main factors and actions that led to recovery. The role of western financial institutions throughout the crisis is muted. We know of course that global hedge funds did play a huge role if not in triggering the AFC, then definitely in prolonging it through ruthless attacks on the regional currencies. The Russian default brought down LTCM, a highly leveraged fund. Following that, other hedge funds including Soros owned Quantum also suffered heavy losses. Very quickly, the AFC ended. But western economists had been silent on the tail end.
What's with the post-2013 footage of Shanghai???
6:25; Sorry but an influx of capital into an economy under any circumstance could've caused a negative current account imbalance. Maybe what you meant was that "even that massive influx of cash wasn't enough to balance the current account due to the enormous negative trade imbalance combined with the massive outflows of money used for servicing their debt."
A lot of good points but some bit of over generalisation on the different countries though. Was in the financial sector in Malaysia then. Trade surplus, high savings rate and low foreign debt and yet it got hit bad. Part of the reason was the foreign inflows into local debt, equity and fx markets were too large for a relatively small country to handle; e.g. at one point the HQ of the European bank I was at had 4 full time FX traders on MYR alone. Contagion effect was just too severe - I was handling accounts of foreign financial institutions and I could see all their transactions - there was no reason for them to borrow local currency(!) at exorbitant rates (several multiples in excess of central bank rate) from each other except if you wanted to short it. Granted the central bank was also notorious for making a run on the GBP only a few years earlier. So yeah, efficiency and skills in managing excessive foreign inflows is a good lesson for all countries.
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
9:00 Not crazy at all...
In fact, very common in the financial industries from personal debt all the way up to government debt. It has many names and forms, but in the end you borrow more money to service the repayments and maybe even a little more to endure hard times or increase productivity.
If it looks like a inescapable downward spiral, well thats because it is. In some cases the revenue improves and the debt can be paid, but the more common ends are:
Individual = Death (natural or otherwise)
Companies = Acquisition/Bankruptcy
Governments = Inflation/Default/Regime Change/All of those
It's an episode about south east Asia but nearly 2/3 of your pictures belongs to China!!!!why!!?
My estimation, 70-80% of the content of this video based on the old school macroeconomic theory... what i meant is, the things you mentioned in this video [the cause of Asian Financial Crisis 1997] already been known 2 decades ago. Try to look at different and refreshing perspective. Perspective of Modern Money Theory or currently simply known as MMT. The foundation of economy of all the involved countries prior to July 1997 was not that weak or fragile. Accusation of lack of governance or investment in not so productive economic activities [as mentioned in this video] are just an economic reasons to justify the collapse. The main reason for any economic bubble burst [in Asian Financial Crisis 1997, Japan Economic Depression started in 1990 and as well as so called US Mortgage Crisis in 2008] is the availability [uncontrolled amount] of hot money in the economic system. The bubble mainly happened [in all those three crises] on the real estate or property and financial assets. In Japan mostly happened in real estate. In South East Asia mainly happened in financial asset such as share. And in US, combination of both. The real and simple solution on how to solve Asia Financial Crisis 1997 elaborated by Professor Dr. Richard Werner in his book, The Princes of Yen, that is allowing Central Banks of the involved countries to print more money. When US faced almost similar crisis in 2008, Ben Bernanke 'digitally printed' US800 billion [around 5.5% of total country's GDP at that time] and US economy recovered well throughout Obama administration. Deflation [not Inflation] did happen in US in 2009, but other than than, US economy on the right track until Trump took over. If you understand the trick of US to come out from 2008 Crisis, if you understand the real reason of Asian Economic Collapse 1997 [rather than repeating what the textbook said from 20 years ago] and if you understand economic enlightenment based on MMT knowledge, I sincerely believe you can come up with a much better and much refreshing content in your future video on any global or regional economic crisis. Cheers.
Muchísimo mejor VisualPolitik en español. Fonseca.
It’s interesting that you don’t mention the western investors( like Soros, etc.) who should be the important part of this financial crisis.
Why use the picture of our late king in the thumbnail when he had nothing to do with this financial crisis?
Are we living in another bubble? FED is keeping interest rates low for too long now.
Imagine showing the Eiffel Tower to talk about Italian events lol... That is how I saw this video.
Australia floated it's dollar back in the 80's I think and was in economic stress at the time. Can you do a video on how a country like Australia which was heavily linked trade wise with the Asian countries fared in comparison? Please :)
I remember we had home mortgage rates of 20%
Great informative video. Thanks :)
You guys should really consider balancing the narrators volume and the music.
Why are you using Chinese pictures, videos, and music for a video on Southeast Asia?
That guy in the thumbnail looks like a Asian Radar O'Reily
I'm surprised that the Philippines handled this crisis very well.
Because of our valiant OFW's remittances. That's why our country survived the 1997 ASIAN CRISIS.
so what happened to the 2 Asian financial centres Hong Kong and Singapore back then?
Wise guys never put their foot in mud....
Currently Sri Lanka facing hardest financial crisis 2020. Thanks again for your priceless efforts in keeping us all up to date in 1997.
Yess in 2022 😫
50 FPS? Feels a bit weird, but not in a bad way.
he is sped up
Could you please give us an insight into the farmer protests against three new laws. Your content is very superior and this would help the world understand similar circumstances in every nation in the near future Thanks again for your priceless efforts in keeping us all up to date
Pls mention country India, it will be easier for others to understand
@@isblue3189 totally forgot in a hurry
Will post another message
@@malwaboy2007 dw has a good one on that topic
@@najayanlama4048 Will check DW Thanks for checking
Was this "crisis" actually caused by western money pulling out due to some type of political disagreement? Has this theory ever been proposed popularly ? Why or why not?
Is this possible related to the Bre-x goldmine scandal?
Why is there no SOROS in this video ?
Are you scared
Asian monetary crisis. It describes countries in Southeast Asia and Korea. But the background song is Chinese music. Oh Yes I forgot, Asia = Chinese
The stereotype -_-
Hahaha hell yah thats what im thinking too literally!! Most of the ppl would think asia means china, japan, Korea hahahah
Yeah still serve as anti China Propaganda. By the way, I remember one Western editorial wrote: Yes these SE Asian countries, South Korea ect are democracies but they are not *FULL FLEDGE DEMOCRACIES* like in the West.
Then came... 2008
lol
Summary: Ponzi Scheme!
Reminds me of "Lexus and the olive Tree"
A important lesson to us.
Are you dude from video named "American vs English vs Australian English"
Josh is my favourite speaker
This a solid and well founded analyst of the financial situation during the past decades, overflowing ofcapiral, local investment of project that is not viable or will not prosper, giving out dividends on projects not performing well, buying businessthat are failing, investing or buying things not related to the main investment portfolio such that these are Red Flags that Warren Buffett would not touch even with a 50 foot pole or give loan to. Everybody got a easy loan for just simple reason without any study such that when it matures the firm is bankrupt and can not pay its due. I am amazed that foreign investors like hedge funds, banks doles out cash without the feasibility study.
I was born in Thailand. I have learn before that king Bhumibol Adulyadej have give a lesson about sufficiency economy so everyone won't get broke when there's a economic downturn.
Yeah ‘97 was depressing 🇰🇷
Malaysia recovered much better than S Korea, by currency controls, neither the crises was that severe, involvement of IMF intentionally crushed SE Asian economies
Abdulaziz Ali very true, Dr M did a good job of handling the crisis
@@AliHamdhan
And he is one of the reason malaysia had a financial crisis
In the beginning of the year 2001, we decided to kick out our president as a fallout of the Asian Financial Crisis.
Video content was good but the inconsistent music volume really fucks up the entire thing.
Greatest bubble occured in Japan in the 1990s even today land of the rising sun has not fully recovered yet
India Farmers’ protest is what I would like to request a video on .
I know you will dissect this issue and bring about a clear view on this topic. Please try if you could
India is waiting to be heard through TH-cam gems like yourself
🙏🏼🙏🏼
Could watch the one made by dw if you want a western perspective
And now Sri Lanka also joined the team of financial crisis HAHAHA damnnn 🙆♂️😅😩
I wonder if Hong Kong’s return to China has something to do with this.
YES, had everything to do with it.
@Alan, how so? Could you expand on that?
Is it really a true loss of a job or wealth when the reason for the existence of the job or wealth was not organic or sound? If the boom had never happened would they have been better off?
why does he keep saying 'take a look"? lol
Can u Link your source
The analysis is a misrepresentation of what actually transpired and how it was exacerbated by the IMF/WTO to implement structural reform, the fire-sale of distressed assets by US vulture funds to foreign banks and repealing monetary policy in mass printing of domestic currency to reflate economies, which would have averted the crisis just like Japan a decade earlier. In fact, the IMF/WTO intervened to block Japan financially assisting Thailand with a rescue package after the hot money outflows and exchange rate depreciation. This was economic genocide.
No single word that ever mention george soros and his speculation activities.
If the new narrator become bald then it would feel the same.
I like the other dude.This guy killed the vibe
Please change your background blue neon light! Its quite a distraction.
So the July 1, 1997 transfer of Hong Kong from British to Chinese rule had *nothing* to do with it?????