The 1997 Asian financial crisis was the worst situation for Indonesia and my family in particular, my parents' small business went bankrupt. I was 5 years old then, but I remember very well the first time I saw my parents cry
it's even worse if you're chinese at that times. many of our women were raped and our business raided, it's actually worse than it's sound, google them.
@@mcrand7887 It's been a year since the crisis in Sri Lanka began but it hasn't affected anyone but the people of Sri Lanka. Sri Lanka is too small to make an impact on other countries.
Our economy is struggling with uncertainties, housing issues, foreclosures, global fluctuations, and the pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
In particular, amid inflation, investors should exercise caution when it comes to their exposure and new purchases. It is only feasible to get such high yields during a recession with the guidance of a qualified specialist or reliable counsel.
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumours and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of an advisor, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up $450k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking
This just made me realize how abusive the US and the IMF can be to emerging countries when they don't align with their interests after they literally exploit them.
I am surprised that the main stellar character that emerged out of this crisis with a V sign was DR M of Malaysia has not been discussed in this documentary. I was living in KL back in those days, and it was only Malaysia which refused to accept the IMF Bailout funds and decided to peg the MYR to the dollar. That was a form of capital control, but, it brought stability, and reduced the hedging risks for both importers and exporters as uncertainty dwindled. Bank Negara played a superb role in stabilizing the Malaysian Economy, despite all the diatribes spoken against DR M by top global economic pundits such as Krugman and Dr Mundell, etc. They later apologized on a tv talk show to DR M. I will never forget DR Mahathirs famous words, during the height of that AFC, that if the markets won't work we will dismantle them! Also, the devaluation of the Thai Baht signalled what was next to come in the form of competitive devaluations across SE Asian Economies, and it was logically feared that other nations would follow suit to keep their exports price attractive. Hedge funds after Black Wednesday found a great opportunity to make money. George Soros was named and shamed by DR M and it went beyond that which need not be discussed on this forum. Hedge funds using mostly equity derivatives sold stocks short and pulled out the capital. That had domino effects on the systemic risk levels and the financial contagion spread from one country to another leading to a full-blown chaotic financial crisis.
EXACTLY. I am an Indonesian my country was destroyed by IMF, their recipe was nothing but poison that destroyed our economy. Later we found out that Clinton's administration was behind all of this to push our dictator Soeharto out. And Mahathir was the shinning beacon at that time he dared to refuse IMF fund and toxic ingredients that came with it and prefer to pump money into real domestic market instead. his way of economy is being replicated by Indonesia, now we understand how important it is to keep our domestic market alive.
@@syedadeelhussain2691 : There will be no way that you could study that kind of thing any more... If you noticed this video... This is an actual "modern" repeat of an old documentary... Cos this is now youtube (social media).. broadcasting old TV ( man-made journalism).... Cos how does people accept and recognise this? Many youngsters today... even from inside China as well.. Would not accept that, this is an old video.. or what happened to SE Asian countries. They do not even accept many things. If I did not have families in HK as well... and being British Cantonese.. I would not believe it either... I travelled back and forth between UK and HK during my early 20s.... And inbetween jobs as well... It is only in recent years did I literally stopped. Looked after my health.. and be with family.. and went online to read the news to find out what the h!ll is going on... I am not rewatching old TVB news and videos... and see what they were saying in 1980s and 1990s.... Now I get it. UK imported a lot of Thai produce as well over the years... Many of their rice products came into the UK... and many Cantonese/chinese stayed.. and this boosted their exports too... UK government controlled and expanded the supply-chains.... even though there were food production issue.. those companies in the earlier days in 1990 really took notice. They literally listened. Today... there is no way that you would be able to actually see any real news any more. Cos nobody would know what digital webpage or whatever.. is true or not.
Yes but unfortunately, Mahathir's moves were a double edged sword and they could not stop his fall from power. And this AFC was a prelude to the western Credit Crunch. In part, Putin's War in Ukraine is also a consequence of the AFC.
LOL I didn't know who he was but I read your comment and thot ..I bet it is the guy at the end ("We build cars without spare tires") I was right... He was the one stand out. Everyone else pretty much sucked. and the Doc was awful imo. Well intentioned but word salad-y, and mostly a bunch of nonsense
When I see a documentary from DW, I relax knowing that they do their best to ensure facts are accurate. DW continues to be impressive and insighful. Your efforts are appreciated.
I'm Thai and experienced crisis first hand. The root cause was simple. 25 THB was pegged to 1 USD. US interest rate was 5%, while in Thailand was 15%. There were 10% FREE money if borrowing in USD and deposit in Thailand. There was huge "hot" money inflow into Thailand, mostly speculate in stock market (bubble) and property (bubble). Most of them came just from unproductive assets. Meanwhile, Thailand had large trade account deposit, and Bank of Thailand needed to defend currency peg by almost depleting its reserve. Hot money flew out, pushed more pressure on THB. When few western hedge fund smell the blood and shorted THB, the currency collasped, along with economy and well-being of 50 million people. Later Western investors came to "shop" several assets at 70% discount, like hotels, shopping malls and companies.
Wow.... so basically almost the entire Thailand got bought out ?... Similar thing now with the UK as well.. many things are owned by foreign companies. Even our football teams. The rest of the country lives off charities.. or taxes...
@@MeiinUK its not just that. The IMF forced the bail out receivers to cut so many social security programs than impacted tens millions of people, forced goverment to cut many projects and millions ended up jobless overnight. The IMF are yet to apologize for their mishandling of 97 financial crisis.
Over the past couple of years, I watched regularly without missing out on any DW documentaries. It is amazing. It relays us more insights into the world as well as uplifts the visions of exactly what is going through the globe about every subject. Thanks a lot, Dw team 👥
@@pesteanvstefan5491 Best thing is to reorganizing one, and not fall for it. They are everywhere be western or eastern. Current Ukraine is the most popular western propaganda everyone is buying, even though it's full of holes in it and no one is questioning.
I immensely enjoyed watching this brilliant documentary as it provided a lot of insights about the global economic design and the precautionary measures that a particular country needs to take in order to prevent economic crises!
koreans call it IMF crisis. it was a difficult time, but thanks to the lessons learned from this crisis, the government and businesses began to pay a lot of attention to risks, and as a result, Korea was able to through the Subprime Mortgage Crisis without recording annual GDP negative growth
I have watched more DW docs than any other platform. And I am not even in Europe. Excellent well researched stories. Like a piece of investigative journalism in a 40 minute video. Great stuff.
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Hi I'm from Thailand. Thank you for taking our country as a study case. We can still feel the fallout from 1997 til this day. We'll never be able to reclaim the economic status ever again. I myself despise George Soros for what he did, but I do study his philosophy a lot to understand how exploitative the free market is.
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Free market is like a jungle where animals think they are free, but no one is
You ever learn about George Soros and the breaking of the British sterling and German mark Exchange Rate Mechanism? He borrowed 10 TIMES his funds worth for that ONE bet and made a billion dollars in 1 night.
@ you got no idea about the piles of financial rules and bank rules and the government tax offices knowing everything that exist in western countries. I know in Vietnam you can bury a lot of tax stuff but not in the west.
In 1997, the IMF's rescue package for Korea was harsher than the 2008 financial crisis. anyway Koreans survived the pain. When the crisis hit the US and Europe in 2008, their rescue package was so kind. It's unfair, but the only way to overcome it is to work hard. These days Europeans complain that Koreans work hard like slaves. but we just know the reality well.
IMF is created to serve the need of certain countries, everyone can ask for a loan but not everyone gets equal term. it's not an unbiased institution with no affiliation.
Working hard is a virtue, and it is to be admired. However, I must disagree with your statement that it is the only way to overcome (an international financial crisis). The only way to do that is to replace the current system, absolutely and entirely, with one that is not controlled by a handful of self-serving elites. Though I do not understand the technology of systems like, for example, Bitcoin (or other similar systems), a system that is transparent and owned by no one is the only way we will ever have a system that actually serves all the hardworking people whose money the world runs on. That is why those in power will ensure that systems like Bitcoin will never, ever take over from the current fiat/central bank systems.
@@staninjapan07 Logically, you are right. But you should know that it took 25 years for people to understand this problem. I guess the Korean gov would have failed long ago if they had tried to approach this issue as a matter of fairness. Hardship always comes first and building fairness requires a long wait.
Dunno man, if your societal pressure is so high that your birth rate is literally less than 1 child per woman (at 0.8, even Japan's higher at 1.4 and most of the West at 1.6-1.8), something's gone very wrong. Just because a certain culture worked for industrializing, doesn't mean it's going to continually work as the country becomes developed.
Thank you for sharing your thoughtful content... for putting it out there with the passion that many of us need and strive for. I'm starting to listen to you almost every morning. Your voice and words are calming, clarifying, uplifting and motivating. It feels real and genuine. I am grateful to have your channel as a source for having a better relationship with myself and the world around me?
My Korean wife was profoundly affected by the Asian Economic Crisis. She was studying in the USA. And her family had to sell their dream house that they had just built. Her university gave all Korean students extra time to pay tuition. The interesting thing: That year, I was in Southeast Asia. And Vietnam was not affected, as it was undergoing an economic boom.
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in 1997, Vietnam economy was not integrated, so we did not suffer much.
Leave it to a Scot to save everyone from themselves! =P Why can't everyone in power act like William McDonough? It isn't every day someone says you saved a country. (30:40)
Thanks for producing this excellent documentary. The 2008 global financial crisis seems to be more widely discussed. But I do believe that there is so much we can learn from the Asian Financial Crisis.
This documentary starts off making it seem like the crisis was born in Thailand. The bushfire of the Asian Financial Crisis actually started because of Japan and their business/econimic influence in Thailand. Almost all huge business during that time was Japanese. Pretty sure thats why China, Korea, HK and Singapore didn't come to their aid in the beginning. It's only when the crisis hit South Korea, the US stepped in because of their influence in East Asia. Because the last thing they want is South Korea to go to China for help. Or for South Korea to fail as a Democratic state. Then you have the greddy foreign exchange traders capitalising on that making it worse. Knowing all this, just like the woman they interviewed said later on in the documentary, the respones and solutions need to be global and multilateral. Because the whole world works on this modern monetary system now. That being said, this could happen again.
I've followed DW Documentary from 2019 and recent quality had been slipping, great to see it back to its very best. Overall it's still far and away the best English language news channel.
I love how all of these NEW problems we created for ourselves happened before I was born, and now as an adult, it's one more thing we have to fix... Thanks greedy baby boomers...
@@williamyoung9401 Problems that you have to deal with that older stupid people created, if only they gained the wisdom to stop blaming their elders for their immediate problems, if only!!!
Another masterpiece of work by DW. I have to be honest with you that DW is one of the best in the world making education fun and interesting. These guys should get good bonuses at the end of the year hahaha May you consider doing documentaries on issues like resilient local cultures around the world, animal rights and environmental rights , science of mindfulness and compassion etc to advance global thinking to another level. Salute to DW!!
and this is in part why China refuses to fully integrate into the western financial system. The IMF loans in Indonesia that were suposedly meant to stabilize markets were used to bail out investors. After they called back their loans the currency completely crashed. This same move happened in Greece when Varoufakis refused to accept new loans to pay back old ones to German banks and restructure their economy.
Agree, but a planned economy has it's own challenges. Chinas economy is looking as bad as any and I doubt they can turn around the falling real estate market. We're all in the same boat now the world economy is connected. A downturn in Europe will hurt China and vica verca
A complete discussion on economy 💯. Financial crisis, World Bank and IMF's role in financial support in crisis, forex market, stock market, how geopolitics involved in economy and many more. So very thank you DW. Thank you, your efforts. Good.
I was in High School during the Asian Financial Crisis and was too young to understand what was going on. Thanks for breaking down what happened and explaining it all in such an educational way 🙏
I wish a video like this was available when I was at UCLA getting my International Development Studies degree. I would make this video mandatory for almost anyone in that department.
Thanks for your words here; I was injured and couldn't work or sleep. TraumaticBrainInjuries. Part of my healing-up was at Osher Lifelong Learning Institute classes. At colleges, universities, libraries and more places, there are OLLI's. We're the older folks who keep going to school. Ph.D. candidates give some of their presentations for review, its a great funLearning time for all. Charter bus to other University programs, kids-students attending. Please check that out. Thanks for reading these words. 👋
The 30s, 70s and 80s weren't global crises. Asia wasn't hit in 80s and 70s and thirties was only in the western world and wasn't just a financial crisis
@@williamyoung9401 Humans are naturally attracted to growth: Be It Material, Spiritual or philosophical!! What matters is NOT that they are attracted to growth BUT what ideology & mind set drives them!! IF the mindset is all inclusive on a global scale taking care of humans, all life on planet & the nature, then it's sustainable & sane, else it's NOT!!
finally!! There's a documentary about Asian Financial Crisis. I'm curious about what happened and it's been a long time I'm looking for a documentary about it
@@blackphoenix114 did you watch the documentary? It doesn't discredit Asia, it discredits the west: it's neo liberal policies, IMF intervention, currency speculators and failing to learn the lessons from the crisis. How do you conclude that it discredits Asia?
Not to mention what the IMF did when Japan was suffering its crisis when its bubble burst. The IMF basically blocked bailouts and made everything so much worse for Japan, which has never recovered. But the what happened when the GFC was emanating globally from the US? THE BIGGEST BAILOUTS EVER! Shocking double standards.
The story is told in a way that concludes with the need for more supranational institutions like the IMF, leaving out the fact that IMF and Worldbank policies of aggressively pushing $ denominated loans created the crisis in the first place. Prof. Richard Werner was a visiting researcher at the Japanese Central Bank at the time and witnessed firsthand how the crisis played out. The documentary "Princess of the Yen" tells his story and presents his research.
International investors want to see solid risk management in place, and the dollar based loans offer better risk management and guarantees of loan repayment, *because* the US economy, on average, can more reliably generate future economic value to prop up the US dollar. Your haven't provided any evidence for your argument that it was the dollar-based loans that have caused the crisis, other than simply making the statement. IMF's flaw, as discussed, was in its disregard of the social impact of the austerity measures that stifled the economic growth, and also the lack of regulation of financial markets (more specifically, the predatory hedge funds like Soros'.) Cyclical deregulation in USA, based on neo-liberal conservative agenda and the domestic election cycles (Republican-led Congress during the Clinton administration), was the real cause of the global crises discussed in the documentary, but the flaws of deregulation were only briefly mentioned when discussing how the Asian banks had plenty of hard currency reserves during the 2007 crisis *because* of their tight regulation of loan-making after the 1997 crisis, and were therefore not affected the way the other markets were. The opportunity was missed to avoid the 2007 fiasco by failing to turn the important lessons about over-leveraging into a US legislation with teeth. On the contrary, markets today are more leveraged than ever and we are in blissful ignorance. Banning the history books, and deciding who can use which toilet, seems to be a more pressing agenda.
@@dekumutant Did you watch the whole documentary? IMF was mentioned as only one of the several factors of those connected crashes, in a search of "lessons learned." Analyzing the various sources of chain reactions is not "scapegoating." People in these countries were given assurances that if they work hard and do the right thing they would enjoy prosperity. No one explained to them that sociopath hedge fund managers can destroy their currency through market manipulation, or that inept IMF managers can make the bad situation even worse. It does sound like a global financial system would be more stable than individual central banks, but that would require more regulation to curb the destructive impulses, and not more deregulation. As it stands, it's better to keep diversifying the regulatory powers as much as possible (but with the improved standards and protections against the predators), and for the banks to maintain the larger reserves of foreign currencies.
A story of the acceptance of corporate and human greed. Money was making wealth not from long term usable products, but from greedy expectations on what would tenfold their investments and no thought's about how it was done... (because everyone else did the same...) Everyone was trying to milk the golden cow, everyone was fighting for the cream, not anyone where interested in making good aged cheese and the skimmed milk that was left was taken as a part payment for the looser's that were to pay for this game... This is a history of major shame and major miss direction!!!
Thank you for sharing your view! I appreciate the way you describe it! ( and I apologize in advance for my limited knowledge of the language and economic understanding! ). understandably, pursuing self-interest is remain the primary goal for most of us. We have been taught how important it is to be successful ( with not enough moral consideration or social responsibility) from a very young age by our parents, schools, workplace, and society. All the stories remind us constantly that one side who is a winner will get every bit of power and has all the exclusive things that lead to a better life. Whereas no one dares to look at the other side that shows the people who have very little resources and freedom to live with. The success formula is like money = power = happiness. It almost becomes a belief that seems to possess us rather than a tool that serves its purpose. But some may wonder why the things that the top people own seem never enough to fill up the emptiness, the hollow that they created after every brutal victory.
As the logo of DW says "made for minds". Always informative to watch. Love DW. Great Team that has put effort to explain Asian financial crisis this simple for common man to understand.
Sir, in India only Chee News and Times Bow Bow are valued. You will find no effort to produce quality content like this, instead sensational whatsapp content is turned into a TV programs.
they still had to deal with the effects of this crisis in South Korea in 2001. but the crisis made those countries smarter and wiser in long run. if we only listened to the same advices we used to give them
Comparing the 2007-2009 Financial Crisis with the 1997-1999 Asian Financial Crisis is like comparing apples to oranges. The 1997-1999 Asian Financial Crisis really was spurned from the pinning of local currencies to the USD, which became devalued relative to the USD when the US raised interest rates to fight inflation. This created a trade deficit in Asian countries which saw their goods becomes too expensive and less competitive in international markets. These governments also were issuing large amounts of short term debt, to the point where they became over-leveraged, requiring a loan from the IMF to bail them out. The 2007-2009 Financial Crisis was a US crisis that spawn from investment banks that were over-exposed to both the housing market and to the derivatives markets within housing (like Mortgage Backed Securities and Credit Default Swaps). When the housing market bubble popped, people began defaulting en masse on their mortgages while the devaluation of houses meant investment banks began to bleed money through their derivatives. In fact the 2007-2009 Financial Crisis really didn't have anything to do with currencies at all. If anything the 1993 UK Sterling Crisis aka Black Wednesday is a little more like what happened in SE Asian in 1997-1999 in a way.
@@understanding.everything unlikely, the united states dollar is the strongest against other currencies now more than any time in the last 20 years, the looming crash may be devastating, but it will hurt china more than anyone and the US the least among developed countries except maybe Russia because Russia is already at the bottom.
@@studytime2570 it's not that simple it's about consumption and debt growing we are living on 30 times debt to GDP there's is not enough growth left to stabilize the Ponzi and currency crises is already happening Japan will the first to go and India will be 5th or 6 th in g20
I wish investigative journalists would investigate those leaders (appointed!!) of the IMF, especially C. Lagarde. Their interests aren’t those of the little people - us.
Here in my country, the Philippines 🇵🇭, The Peso dropped from PHP 26 to 40+, But we survived thanks to remittances of the migrant workers and subsequent economic reforms were implemented before and after the crisis.
Korean big companies Daewoo, Hanbo, Kia and went bankruptcy at that time and Hyundai almost went bankruptcy. Banks as well. So owners of many banks were changed. Standard Chartered acquired Cheil, Citi bank acquired Hanmi bank at crazy cheap price
This is a very sobering documentary. While unimpeded speculation is allowed to happen, everyone is at risk. Those people doing that speculation need to be controlled. Longer-term planning and controlling is needed in order not only to avoid financial crises but also to factor in that without a healthy 'environment' - aka all the things that nature does for human economic and social activity - there is simply no way that the current patterns can survive or be trusted. The patterns are dysfunctional and ultimately toxic.
WB and IMF should have provided funds to tide over the liquidity problem of Thailand, instead it pushed it to the brink of default, and ignited the whole Asian Financial Crisis
A good companion piece for this video is Princes of the Yen" by Professor Richard Werner. Chapter 17. There is a video based on the book on TH-cam. He describes the entire process as a takedown.
27:51 +The remaining 20 billion (the US, Japan, but also Germany, France, Canada, UK, and Australia) Not only Japan and the US, many countries provided money to Korea
Thank you DW, I love the economics documentaries you publish, but sadly I barely understand 20%-30% of what you present. because you make it very difficult to understand, or example you explained short selling at 14:30, I know exactly what short selling is because I've done it myself, but your choice of words was far from simple to understand for someone who is new to it, if I had no prior experience, I would most probably not understand what you were talking about at 14:30, I understand economics is a pretty complex subject, but your sentence structures add more complexity instead of simplifying it.
USD being a global tender, and US making minor tweaks for its own good, has far worse global consequences. US needs to think and take ownership of global countries, if it wants to maintain USD as global currency. But no. US doesn't want any accountability of anything that goes wrong.
@@EliF-ge5bu If it wants to maintain the status quo of thinking that it dominates the world, then yes. Hahha...but the US being US doesn't give a rat ass about anyone but itself....
I bet that... because of this situation as well... these individuals.. are carry a chip on their shoulders as well.. It is also similar to.. how some people behave with money as well. Like some of the posts that I see sometimes online from Vietnam or from Indonesia.. they have no concept.. of.. how credit cards are... Those loans are still there... Cos they stated that... or their assumption is that, those debts will be wiped. (Only if you stayed within your own home country... and not treat this as so when abroad in the USA, say.) They don't get that in the USA, you do have to pay it back as well... they also don't realise that, many people in the USA.. or in the UK, most of them live off charity or trusts money now. They don't live off their own business or private money... Which is why their approach or assumption towards money is such that "they must have made a lot of money before I did from businesses"... That isn't necessarily true per se.
I was just a kid in Hong Kong back in 1998 that knew hardly anything, but even I remember the city's government, led by the treasurer Donald Tsang, declaring all-out war against Soros and others to hold the HKD-USD exchange rate. I didn't understand its importance then, but now I see that it was really fortunate that Hong Kong had the immense foreign reserves (which the speculators underestimated) to defend the exchange rate that most other Asian countries didn't have, or we would have gone the same way too...
@@iamfrommop Actually Hong Kong had its own reserves, built up from way before the handover (which was only one year prior), so no. I have no doubt Beijing would have helped if it was deemed necessary, but Hong Kong did not need the help. Beijing did voice support for the HK government's plan of action though. Unlike China nowadays, China was very hands-off Hong Kong in the initial years after the handover
It would be great to have transcripts available for complex documentaries as articles on the DW website. I am suggesting it in general, not for just this video, because DW Documentary represents a higher quality of video essays that are already exceeding the intensity of lectures. Specific content for non-specialised audiences can be cognitively challenging at times to follow, memorise or emplace. Transcripts could allow more inclusivity and could lead to a higher quality of reflecting discussion within and beyond the comment section.
I grew up (b. 1958) through LSD and rock music and have never understood why so many of my generation followed greed and image. I thought we knew better.
I was a university of Indonesia student 1995-1999, so I witnessed the crisis brewing, Thailand baht tumbled, rupiah exchange rate band removed, inflation soared, students demonstrations and shooting, the 1998 riot and rupiah hitting 17000 per usd in intraday (blackmarket hit above 20,000), Suharto resignation, both my parents lost jobs, then the Reformasi Era. I still can never take big bets and always keep spare cash and always low debt level. The crisis taught us that you never know when crisis hits. When 2008 happened, I was a reporter for Bloomberg. I remember saying to one of my editors in early 2008 "the west never learned from Asian 1997-1998 crisis. This can blow up" it did few months later. I was pissed.
@DW Documentary Thank you for another good small documentary. To the editors of the video, try not to cut picture and sound at the same time, it makes the shift really abrupt, let the sound flow over into the next frame, then fade in a new sound track. Cutting picture and sound in the same frame should be avoided :D
All Asian economy including monetary fund depends always with the US. Should the US be worried about this, it will drop the value of US dollor all over the world not only Asian countries.
Financial sectors should be smaller. We don't need more scammers in fancy offices doing nothing but talking bullshit. We need more honest businesses and engineers.
It is always funny to see what greed did. The reason nb helped asia was that a lof of people made billions by profiting from their suffering South korea was just that
I was 8 years old living in Thailand in 1997. I remembered the year and actually, you can still see a lot of the fallout even now in Thailand. I was studying in a somewhat prestigious school and remembered that one of my friend's dad who was a SME owner bankrupted and had to make/sell small sandwiches. He packed them in a carrying box and walked around the CBD of Bangkok and to our school everyday. I still remember government campaign asking every able citizen to donate their gold to create some credit for the country. Definetely harder and deeper fall than South Korea.1997 is definitely a crisis Thai etchs deep. Afterward, so many rules have been introduced on the financial sector here. The banking licenses become impossible to get and the only practical way is to takeover an existing bank just to get a license. The reserve ratio at the bank is relatively high. Thai Central Bank policy is super conservative since 1997. Now Thailand has very high foreign reserve currency just sitting around in the account, doing nothing, because anyone who suggest otherwise will be bombshelled about 1997 lesson. Well, it is a somewhat financial safe haven in the region right now because of 1997 crisis though. I don't really think we should put a blame on Soros though. I studied about the crisis quite much and can confidently say that it was Thai policies that were to blame. We were too confident, too arrogant to accept that the system's foundation was weak. We saw UK in 1990 was attacked in a very similar manner but we did not learn. Since there was a precedent, even if there were no Soros, someone else would attack instead. No hard feeling, it just money. And as the guy in the documentary said, Thailand is too small to fight the market. The sad truth is. many policy makers from that era have not pay for their action. These people were the insider and they decided when the Thailand Central Bank would give in and could front run (and I strongly believe some did). Sad that our politician never learn (or perhaps they do? maybe that is why Thailand still has a failed political system).
Thailand can be a good place to live and have a business. Thailand exports 40% of the food it grows. Thailand is a large manufacturer in the world. Thailand has a trade surplus exporting a lot A lot of international companies are manufacturing in Thailand. Thailand just has to make sure that it doesn't succumb to USA demands. Thailand has a good relationship with Russia, China and India. Soros and the IMF (International Mafia Fund) basically shafted Thailand in 1997/98.
![ลองสุ่มไอโฟน 990 โกงมั้ย? [ โกงมั้ยครับ ep.101 ] | DOM](http://i.ytimg.com/vi/bfsWe0j492k/mqdefault.jpg)
The 1997 Asian financial crisis was the worst situation for Indonesia and my family in particular, my parents' small business went bankrupt. I was 5 years old then, but I remember very well the first time I saw my parents cry
Wow that must be a terrible searing memory
Soon Sri Lanka type of situation going to hit Europe, specially Germany.
@@1966bluemax easy to say that traumatic experience still lingering on most Indonesians.
it's even worse if you're chinese at that times. many of our women were raped and our business raided, it's actually worse than it's sound, google them.
@@mcrand7887 It's been a year since the crisis in Sri Lanka began but it hasn't affected anyone but the people of Sri Lanka. Sri Lanka is too small to make an impact on other countries.
Our economy is struggling with uncertainties, housing issues, foreclosures, global fluctuations, and the pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
In particular, amid inflation, investors should exercise caution when it comes to their exposure and new purchases. It is only feasible to get such high yields during a recession with the guidance of a qualified specialist or reliable counsel.
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumours and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of an advisor, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up $450k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking
Could you possibly recommend a CFA you've consulted with?
Her name is Jessica Lee Horst, can't divulge much. Most likely, the internet should have her basic info, you can research if you like.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
Thank you DW, watching this documentary felt like time well spent
Hello😊
This just made me realize how abusive the US and the IMF can be to emerging countries when they don't align with their interests after they literally exploit them.
A sick country and even more sick institution.
Read chapter 17 of "Princes of the Yen" by Professor Werner and he lays it out rather well.
There's a TH-cam video on it
Bitcoin fixes this
Try being a marginalized person WITHIN the US. It's constant.
I am surprised that the main stellar character that emerged out of this crisis with a V sign was DR M of Malaysia has not been discussed in this documentary. I was living in KL back in those days, and it was only Malaysia which refused to accept the IMF Bailout funds and decided to peg the MYR to the dollar.
That was a form of capital control, but, it brought stability, and reduced the hedging risks for both importers and exporters as uncertainty dwindled. Bank Negara played a superb role in stabilizing the Malaysian Economy, despite all the diatribes spoken against DR M by top global economic pundits such as Krugman and Dr Mundell, etc.
They later apologized on a tv talk show to DR M.
I will never forget DR Mahathirs famous words, during the height of that AFC, that if the markets won't work we will dismantle them!
Also, the devaluation of the Thai Baht signalled what was next to come in the form of competitive devaluations across SE Asian Economies, and it was logically feared that other nations would follow suit to keep their exports price attractive.
Hedge funds after Black Wednesday found a great opportunity to make money.
George Soros was named and shamed by DR M and it went beyond that which need not be discussed on this forum.
Hedge funds using mostly equity derivatives sold stocks short and pulled out the capital.
That had domino effects on the systemic risk levels and the financial contagion spread from one country to another leading to a full-blown chaotic financial crisis.
EXACTLY. I am an Indonesian my country was destroyed by IMF, their recipe was nothing but poison that destroyed our economy. Later we found out that Clinton's administration was behind all of this to push our dictator Soeharto out. And Mahathir was the shinning beacon at that time he dared to refuse IMF fund and toxic ingredients that came with it and prefer to pump money into real domestic market instead. his way of economy is being replicated by Indonesia, now we understand how important it is to keep our domestic market alive.
@@harukrentz435 international political economy is an interesting area of study.
@@syedadeelhussain2691 : There will be no way that you could study that kind of thing any more... If you noticed this video... This is an actual "modern" repeat of an old documentary... Cos this is now youtube (social media).. broadcasting old TV ( man-made journalism).... Cos how does people accept and recognise this? Many youngsters today... even from inside China as well.. Would not accept that, this is an old video.. or what happened to SE Asian countries. They do not even accept many things. If I did not have families in HK as well... and being British Cantonese.. I would not believe it either... I travelled back and forth between UK and HK during my early 20s.... And inbetween jobs as well... It is only in recent years did I literally stopped. Looked after my health.. and be with family.. and went online to read the news to find out what the h!ll is going on... I am not rewatching old TVB news and videos... and see what they were saying in 1980s and 1990s.... Now I get it.
UK imported a lot of Thai produce as well over the years... Many of their rice products came into the UK... and many Cantonese/chinese stayed.. and this boosted their exports too... UK government controlled and expanded the supply-chains.... even though there were food production issue.. those companies in the earlier days in 1990 really took notice. They literally listened. Today... there is no way that you would be able to actually see any real news any more. Cos nobody would know what digital webpage or whatever.. is true or not.
Yes but unfortunately, Mahathir's moves were a double edged sword and they could not stop his fall from power.
And this AFC was a prelude to the western Credit Crunch. In part, Putin's War in Ukraine is also a consequence of the AFC.
What soros did?
Any documentary with the participation of Joseph Stiglitz shall always be great. Thanks DW for your amazing work.
LOL I didn't know who he was but I read your comment and thot ..I bet it is the guy at the end ("We build cars without spare tires") I was right... He was the one stand out. Everyone else pretty much sucked. and the Doc was awful imo. Well intentioned but word salad-y, and mostly a bunch of nonsense
When I see a documentary from DW, I relax knowing that they do their best to ensure facts are accurate. DW continues to be impressive and insighful. Your efforts are appreciated.
Thank you for watching and your positive feedback! :)
@@DWDocumentary whenever I want to spread misinformation , I just copy your transcript and paste it
@@byavarsi Where do you get *your* information then..? 🥴
@Zigest check out the lakes, rivers, are the water level still the same level as before?
@@DWDocumentary 🤭
I'm Thai and experienced crisis first hand. The root cause was simple. 25 THB was pegged to 1 USD. US interest rate was 5%, while in Thailand was 15%. There were 10% FREE money if borrowing in USD and deposit in Thailand.
There was huge "hot" money inflow into Thailand, mostly speculate in stock market (bubble) and property (bubble). Most of them came just from unproductive assets.
Meanwhile, Thailand had large trade account deposit, and Bank of Thailand needed to defend currency peg by almost depleting its reserve.
Hot money flew out, pushed more pressure on THB. When few western hedge fund smell the blood and shorted THB, the currency collasped, along with economy and well-being of 50 million people.
Later Western investors came to "shop" several assets at 70% discount, like hotels, shopping malls and companies.
Wow.... so basically almost the entire Thailand got bought out ?... Similar thing now with the UK as well.. many things are owned by foreign companies. Even our football teams. The rest of the country lives off charities.. or taxes...
@@MeiinUK its not just that. The IMF forced the bail out receivers to cut so many social security programs than impacted tens millions of people, forced goverment to cut many projects and millions ended up jobless overnight. The IMF are yet to apologize for their mishandling of 97 financial crisis.
@harukrentz435 because it's intentional! we keep asking ourselves who's responsible? the USA? well it goes deeper who owns the USA interests? Israel
Over the past couple of years, I watched regularly without missing out on any DW documentaries. It is amazing. It relays us more insights into the world as well as uplifts the visions of exactly what is going through the globe about every subject. Thanks a lot, Dw team 👥
You see documentary on DW. I see a western propaganda.
@@mcrand7887 Beauty is in the eye on the beholder.
@@azeezmoideen9262 A 'beautiful propaganda'.
Im inclined to trust western propaganda much more than any kimd of propaganda.
@@pesteanvstefan5491 Best thing is to reorganizing one, and not fall for it. They are everywhere be western or eastern. Current Ukraine is the most popular western propaganda everyone is buying, even though it's full of holes in it and no one is questioning.
I immensely enjoyed watching this brilliant documentary as it provided a lot of insights about the global economic design and the precautionary measures that a particular country needs to take in order to prevent economic crises!
😮😮😅😅😅😅😅😅😅😅😢😮
Yes, very good documentary. It also shows why we all need USA, and how well Koreans managed the crisis.
koreans call it IMF crisis. it was a difficult time, but thanks to the lessons learned from this crisis, the government and businesses began to pay a lot of attention to risks, and as a result, Korea was able to through the Subprime Mortgage Crisis without recording annual GDP negative growth
I have watched more DW docs than any other platform. And I am not even in Europe. Excellent well researched stories. Like a piece of investigative journalism in a 40 minute video. Great stuff.
Thanks for watching and subscribing. We try to cover a broad spectrum of important and often difficult global
issues and we really appreciate your positive feedback.
Hi I'm from Thailand. Thank you for taking our country as a study case. We can still feel the fallout from 1997 til this day. We'll never be able to reclaim the economic status ever again. I myself despise George Soros for what he did, but I do study his philosophy a lot to understand how exploitative the free market is.
Free market is like a jungle where animals think they are free, but no one is
You ever learn about George Soros and the breaking of the British sterling and German mark Exchange Rate Mechanism? He borrowed 10 TIMES his funds worth for that ONE bet and made a billion dollars in 1 night.
@ you got no idea about the piles of financial rules and bank rules and the government tax offices knowing everything that exist in western countries. I know in Vietnam you can bury a lot of tax stuff but not in the west.
The ruthlessness of capitalism ...thank God Asia learned their lessons pretty quick...
In 1997, the IMF's rescue package for Korea was harsher than the 2008 financial crisis. anyway Koreans survived the pain. When the crisis hit the US and Europe in 2008, their rescue package was so kind. It's unfair, but the only way to overcome it is to work hard. These days Europeans complain that Koreans work hard like slaves. but we just know the reality well.
The IMF is De facto run by the US and European powers of course it’s gonna be bias to their favour.
IMF is created to serve the need of certain countries, everyone can ask for a loan but not everyone gets equal term. it's not an unbiased institution with no affiliation.
Working hard is a virtue, and it is to be admired.
However, I must disagree with your statement that it is the only way to overcome (an international financial crisis).
The only way to do that is to replace the current system, absolutely and entirely, with one that is not controlled by a handful of self-serving elites.
Though I do not understand the technology of systems like, for example, Bitcoin (or other similar systems), a system that is transparent and owned by no one is the only way we will ever have a system that actually serves all the hardworking people whose money the world runs on. That is why those in power will ensure that systems like Bitcoin will never, ever take over from the current fiat/central bank systems.
@@staninjapan07 Logically, you are right. But you should know that it took 25 years for people to understand this problem. I guess the Korean gov would have failed long ago if they had tried to approach this issue as a matter of fairness. Hardship always comes first and building fairness requires a long wait.
Dunno man, if your societal pressure is so high that your birth rate is literally less than 1 child per woman (at 0.8, even Japan's higher at 1.4 and most of the West at 1.6-1.8), something's gone very wrong.
Just because a certain culture worked for industrializing, doesn't mean it's going to continually work as the country becomes developed.
This was really well done. As an aside also enjoyed seeing all the cities around the world plus historical footage.
Thank you for sharing your thoughtful content... for
putting it out there with the passion that many of us need and strive for. I'm starting to listen to you
almost every morning. Your voice and words are calming, clarifying, uplifting and motivating.
It feels real and genuine. I am grateful to have your channel as a source for having a better relationship with myself and the world around me?
This is one of the best treatments of the subject I've found, and will reach my students. Well done.
Remember: The amount in your bank account does not equal your I.Q. (that quote is all me). ;-)
"A bank no longer had to keep reserves of the equivalent amount in its vaults for the capital it lends"
@@Colette. Thats not fiat currency. Thats fractional reserve banking.
My Korean wife was profoundly affected by the Asian Economic Crisis. She was studying in the USA. And her family had to sell their dream house that they had just built. Her university gave all Korean students extra time to pay tuition. The interesting thing: That year, I was in Southeast Asia. And Vietnam was not affected, as it was undergoing an economic boom.
in 1997, Vietnam economy was not integrated, so we did not suffer much.
@ Hi friend what do you mean by "not integrated" i don't understand. please share your knowledge.
Viet Nam had capital control, it would not have been possible for hedge funds to borrow so many VND to trouble the central bank.
@@Asphyx12It means they weren't dependent on the other South East Asian countries. They weren't trading that freely with them
The best finacial documentary I have ever seen. Thank you all the production team and DW by their commitiment with the true.
Leave it to a Scot to save everyone from themselves! =P Why can't everyone in power act like William McDonough? It isn't every day someone says you saved a country. (30:40)
Thanks for producing this excellent documentary. The 2008 global financial crisis seems to be more widely discussed. But I do believe that there is so much we can learn from the Asian Financial Crisis.
This documentary starts off making it seem like the crisis was born in Thailand. The bushfire of the Asian Financial Crisis actually started because of Japan and their business/econimic influence in Thailand. Almost all huge business during that time was Japanese. Pretty sure thats why China, Korea, HK and Singapore didn't come to their aid in the beginning. It's only when the crisis hit South Korea, the US stepped in because of their influence in East Asia. Because the last thing they want is South Korea to go to China for help. Or for South Korea to fail as a Democratic state. Then you have the greddy foreign exchange traders capitalising on that making it worse. Knowing all this, just like the woman they interviewed said later on in the documentary, the respones and solutions need to be global and multilateral. Because the whole world works on this modern monetary system now. That being said, this could happen again.
We could have learned from 2008, too, and didn't. We're pathetic.
Lies again? Face Of MLS Football Clubs
I've followed DW Documentary from 2019 and recent quality had been slipping, great to see it back to its very best. Overall it's still far and away the best English language news channel.
I love how all of these NEW problems we created for ourselves happened before I was born, and now as an adult, it's one more thing we have to fix... Thanks greedy baby boomers...
@@williamyoung9401 Problems that you have to deal with that older stupid people created, if only they gained the wisdom to stop blaming their elders for their immediate problems, if only!!!
Another masterpiece of work by DW. I have to be honest with you that DW is one of the best in the world making education fun and interesting. These guys should get good bonuses at the end of the year hahaha
May you consider doing documentaries on issues like resilient local cultures around the world, animal rights and environmental rights , science of mindfulness and compassion etc to advance global thinking to another level.
Salute to DW!!
Thanks for watching and for the positive feedback! We're glad you enjoy our content. Best wishes!
I LIVE DW DOCUMENTARIES...NEWS AS WELL. 👌🏼👍🏼❣🙂💯💯
Nonsense. This isn't education, it's ritualistic mumble.
and this is in part why China refuses to fully integrate into the western financial system. The IMF loans in Indonesia that were suposedly meant to stabilize markets were used to bail out investors. After they called back their loans the currency completely crashed. This same move happened in Greece when Varoufakis refused to accept new loans to pay back old ones to German banks and restructure their economy.
Probably sensible!
Based China move
Agree, but a planned economy has it's own challenges. Chinas economy is looking as bad as any and I doubt they can turn around the falling real estate market. We're all in the same boat now the world economy is connected. A downturn in Europe will hurt China and vica verca
@@aksbeixhev Chinas economy still is better than EU , Germany had first trade deficit in 30 years
Ahhh i see... so there’s a sayings then.... GO TO HELL IMF...
Another high quality piece of content from DW
A complete discussion on economy 💯.
Financial crisis, World Bank and IMF's role in financial support in crisis, forex market, stock market, how geopolitics involved in economy and many more.
So very thank you DW.
Thank you, your efforts. Good.
I love how even the financial markets are racist. >_< (22:50)
An amazing educational video. Million thanks to DW.
I was in High School during the Asian Financial Crisis and was too young to understand what was going on. Thanks for breaking down what happened and explaining it all in such an educational way 🙏
Thank you for watching and taking the time to comment.
I wish a video like this was available when I was at UCLA getting my International Development Studies degree. I would make this video mandatory for almost anyone in that department.
Thanks for your words here; I was injured and couldn't work or sleep. TraumaticBrainInjuries. Part of my healing-up was at Osher Lifelong Learning Institute classes. At colleges, universities, libraries and more places, there are OLLI's. We're the older folks who keep going to school. Ph.D. candidates give some of their presentations for review, its a great funLearning time for all. Charter bus to other University programs, kids-students attending. Please check that out. Thanks for reading these words. 👋
True
Europe with the high inflation, the devaluation of euro, ernegy crisis, gas crisis: first time?
Yes
Ok
Asian crisis hits fast, and hits hard. Few months and all your savings, job, assets were gone. suicides almost every day.
The 30s, 70s and 80s weren't global crises. Asia wasn't hit in 80s and 70s and thirties was only in the western world and wasn't just a financial crisis
You clearly haven't watched the video. It's about the Asian financial crisis in 1997.
I like it when the camera rolling from one side to the other so that the entire city can be included.
Finance is not my forte. Yet the narrative used here is very understandable as this comprehensive documentary progresses. Good show!
Such an understandable, wise and well researched documentary- well done! Just proves how interconnected everyone is- no matter how big or small!
Neo-Liberalism has been such a fail
Capitalists: "GROWTH!!!!!!!!!!!"
You know what else is obsessed with growth? Cancer.
@@williamyoung9401 Humans are naturally attracted to growth: Be It Material, Spiritual or philosophical!!
What matters is NOT that they are attracted to growth BUT what ideology & mind set drives them!!
IF the mindset is all inclusive on a global scale taking care of humans, all life on planet & the nature, then it's sustainable & sane, else it's NOT!!
finally!! There's a documentary about Asian Financial Crisis. I'm curious about what happened and it's been a long time I'm looking for a documentary about it
There's another good documentary on the crisis. you can find it on TH-cam if you search 'pbs frontline the crash'
Eagerly await for Europe energy crisis documentary, including large scale protest.
A propaganda to dicredit Asia, but it cannot change the fact, that Asia is now the new economic hub.
@@blackphoenix114 did you watch the documentary? It doesn't discredit Asia, it discredits the west: it's neo liberal policies, IMF intervention, currency speculators and failing to learn the lessons from the crisis. How do you conclude that it discredits Asia?
There's a great movie on it bud
It was really scarry the mass protest in Indonesia in 1998. I hope it won't happen again.
definitely not gonna happen again, and we will make it not gonna happen ever again!
really scary for Chinese. Suharto used Chinese as scapegoat.
@@426dfv happened twice and will happen again since they never apologized. Better move to non Islamic countries
we lost all our wealth when the asian financial crisis hit us. it took us 10 yrs. to recover. who knew borrowing in dollars would bite us in the ass.
Not to mention what the IMF did when Japan was suffering its crisis when its bubble burst. The IMF basically blocked bailouts and made everything so much worse for Japan, which has never recovered. But the what happened when the GFC was emanating globally from the US? THE BIGGEST BAILOUTS EVER! Shocking double standards.
Huh? The IMF has never bailed out the US. What are you talking about? The US bailed out the US.
Power move
indeed. they have their own interest protected
The story is told in a way that concludes with the need for more supranational institutions like the IMF, leaving out the fact that IMF and Worldbank policies of aggressively pushing $ denominated loans created the crisis in the first place. Prof. Richard Werner was a visiting researcher at the Japanese Central Bank at the time and witnessed firsthand how the crisis played out. The documentary "Princess of the Yen" tells his story and presents his research.
will check that out as well.
International investors want to see solid risk management in place, and the dollar based loans offer better risk management and guarantees of loan repayment, *because* the US economy, on average, can more reliably generate future economic value to prop up the US dollar. Your haven't provided any evidence for your argument that it was the dollar-based loans that have caused the crisis, other than simply making the statement. IMF's flaw, as discussed, was in its disregard of the social impact of the austerity measures that stifled the economic growth, and also the lack of regulation of financial markets (more specifically, the predatory hedge funds like Soros'.) Cyclical deregulation in USA, based on neo-liberal conservative agenda and the domestic election cycles (Republican-led Congress during the Clinton administration), was the real cause of the global crises discussed in the documentary, but the flaws of deregulation were only briefly mentioned when discussing how the Asian banks had plenty of hard currency reserves during the 2007 crisis *because* of their tight regulation of loan-making after the 1997 crisis, and were therefore not affected the way the other markets were. The opportunity was missed to avoid the 2007 fiasco by failing to turn the important lessons about over-leveraging into a US legislation with teeth. On the contrary, markets today are more leveraged than ever and we are in blissful ignorance. Banning the history books, and deciding who can use which toilet, seems to be a more pressing agenda.
People really enjoying the IMF scapegoat lately
@@dekumutant Did you watch the whole documentary? IMF was mentioned as only one of the several factors of those connected crashes, in a search of "lessons learned." Analyzing the various sources of chain reactions is not "scapegoating." People in these countries were given assurances that if they work hard and do the right thing they would enjoy prosperity. No one explained to them that sociopath hedge fund managers can destroy their currency through market manipulation, or that inept IMF managers can make the bad situation even worse. It does sound like a global financial system would be more stable than individual central banks, but that would require more regulation to curb the destructive impulses, and not more deregulation. As it stands, it's better to keep diversifying the regulatory powers as much as possible (but with the improved standards and protections against the predators), and for the banks to maintain the larger reserves of foreign currencies.
@@fd4511 hm.. any resources you recommend?
A story of the acceptance of corporate and human greed. Money was making wealth not from long term usable products, but from greedy expectations on what would tenfold their investments and no thought's about how it was done... (because everyone else did the same...)
Everyone was trying to milk the golden cow, everyone was fighting for the cream, not anyone where interested in making good aged cheese and the skimmed milk that was left was taken as a part payment for the looser's that were to pay for this game...
This is a history of major shame and major miss direction!!!
Thank you for sharing your view! I appreciate the way you describe it!
( and I apologize in advance for my limited knowledge of the language and economic understanding! ).
understandably, pursuing self-interest is remain the primary goal for most of us. We have been taught how important it is to be successful ( with not enough moral consideration or social responsibility) from a very young age by our parents, schools, workplace, and society.
All the stories remind us constantly that one side who is a winner will get every bit of power and has all the exclusive things that lead to a better life. Whereas no one dares to look at the other side that shows the people who have very little resources and freedom to live with.
The success formula is like money = power = happiness. It almost becomes a belief that seems to possess us rather than a tool that serves its purpose. But some may wonder why the things that the top people own seem never enough to fill up the emptiness, the hollow that they created after every brutal victory.
As the logo of DW says "made for minds". Always informative to watch. Love DW.
Great Team that has put effort to explain Asian financial crisis this simple for common man to understand.
Sir, in India only Chee News and Times Bow Bow are valued. You will find no effort to produce quality content like this, instead sensational whatsapp content is turned into a TV programs.
I can say with confidence DW is the #1 Satellite Television in the Whole World.
Yep, I remember this and it was shockingly unexpected: if it can happen to Japan it can happen anywhere.
DW's documentaries are so good id even pay to have them on disc
What's a "disc?" =P
One of the best & insightful documentaries I have ever seen in DW
Business leaders, economists, the IMF and World Banc meet once every 5 years, when there's a new financial crisis every 7-10 years? VERY proactive.
Maybe DW can do a documentary on the 1982 & 1994 Mexican financial crisis or the Russian financial crisis of 1998
they still had to deal with the effects of this crisis in South Korea in 2001. but the crisis made those countries smarter and wiser in long run. if we only listened to the same advices we used to give them
15:20 got me really really angry. How can you not look at the Desaster that you have just done. I hope he felt no pain with that cold heart.
Comparing the 2007-2009 Financial Crisis with the 1997-1999 Asian Financial Crisis is like comparing apples to oranges.
The 1997-1999 Asian Financial Crisis really was spurned from the pinning of local currencies to the USD, which became devalued relative to the USD when the US raised interest rates to fight inflation. This created a trade deficit in Asian countries which saw their goods becomes too expensive and less competitive in international markets. These governments also were issuing large amounts of short term debt, to the point where they became over-leveraged, requiring a loan from the IMF to bail them out.
The 2007-2009 Financial Crisis was a US crisis that spawn from investment banks that were over-exposed to both the housing market and to the derivatives markets within housing (like Mortgage Backed Securities and Credit Default Swaps). When the housing market bubble popped, people began defaulting en masse on their mortgages while the devaluation of houses meant investment banks began to bleed money through their derivatives. In fact the 2007-2009 Financial Crisis really didn't have anything to do with currencies at all.
If anything the 1993 UK Sterling Crisis aka Black Wednesday is a little more like what happened in SE Asian in 1997-1999 in a way.
Very enlightening
Yeah
you can thank george sorso for that.
Forget 2008, you cannot avoid 2023
Id say 2026-2029 don’t underestimate politicians ability to kick the can down the road and make an issue fester and become worse 😂
Think this will be last and complete collapse of dollar system so it will be longer than a year maybe 3 years for hyperinflation
@@understanding.everything unlikely, the united states dollar is the strongest against other currencies now more than any time in the last 20 years, the looming crash may be devastating, but it will hurt china more than anyone and the US the least among developed countries except maybe Russia because Russia is already at the bottom.
@@understanding.everything yes. But if strong alternative emerges. For instance the BRICS basket of currency.
@@studytime2570 it's not that simple it's about consumption and debt growing we are living on 30 times debt to GDP there's is not enough growth left to stabilize the Ponzi and currency crises is already happening Japan will the first to go and India will be 5th or 6 th in g20
I wish investigative journalists would investigate those leaders (appointed!!) of the IMF, especially C. Lagarde. Their interests aren’t those of the little people - us.
Failed economic system will only cause chaos for many but huge profit for the few.
Here in my country, the Philippines 🇵🇭, The Peso dropped from PHP 26 to 40+, But we survived thanks to remittances of the migrant workers and subsequent economic reforms were implemented before and after the crisis.
Such an interesting, educational documentary. Thank you for all the effort put into it!
Min 37, this is incorrect, IMF still demanded austerity in 2010 and thereafter in the case of Greece.
Korean big companies Daewoo, Hanbo, Kia and went bankruptcy at that time and Hyundai almost went bankruptcy. Banks as well. So owners of many banks were changed. Standard Chartered acquired Cheil, Citi bank acquired Hanmi bank at crazy cheap price
Dw coverage narration very superior.
There is a lot of frightening stuff on the Internet. This is the Most frightening.
Thank you DW for this documentary.
0.1%: "Who cares what happens? No matter what we do, only the poor will suffer."
This video is the dust jacket blurb to a book on the topic. Just enough sensation to determine whether to jump off the cliff for a deep dive.
Greenspan, Summers and Rubin have so much to answer for.
This is a very sobering documentary. While unimpeded speculation is allowed to happen, everyone is at risk. Those people doing that speculation need to be controlled. Longer-term planning and controlling is needed in order not only to avoid financial crises but also to factor in that without a healthy 'environment' - aka all the things that nature does for human economic and social activity - there is simply no way that the current patterns can survive or be trusted. The patterns are dysfunctional and ultimately toxic.
WB and IMF should have provided funds to tide over the liquidity problem of Thailand, instead it pushed it to the brink of default, and ignited the whole Asian Financial Crisis
A good companion piece for this video is Princes of the Yen" by Professor Richard Werner.
Chapter 17.
There is a video based on the book on TH-cam.
He describes the entire process as a takedown.
It's an excellent documentary but all it does is reinforce in my mind that modern economic and monetary policy is insane.
27:51
+The remaining 20 billion (the US, Japan, but also Germany, France, Canada, UK, and Australia)
Not only Japan and the US, many countries provided money to Korea
Am looking forward to DW telling us about the American one
Thank you DW, I love the economics documentaries you publish, but sadly I barely understand 20%-30% of what you present. because you make it very difficult to understand, or example you explained short selling at 14:30, I know exactly what short selling is because I've done it myself, but your choice of words was far from simple to understand for someone who is new to it, if I had no prior experience, I would most probably not understand what you were talking about at 14:30, I understand economics is a pretty complex subject, but your sentence structures add more complexity instead of simplifying it.
Exactly. I had to look up "maturities." Not all of us have stock, you know?
They have to make it more complicated than it should be, so the Global Financial Crisis can happen
Thank you so much for the video!
Thanks for watching the documentary! We are glad you liked it 😊
All the Americans got PTSD from the opening shots.
Amazing masterpiece documentary on 1997 Asian financial crisis.
Don't forget 2008.
Don't forget Italy, Greece, Spain. Ireland.
Wonder about Poland, Hungary.....
I Like to watch DW story's,this channel is doing v.well ❤
IMF = International Mafia Fund. 🤣
And people wonder why people go with the China belt and road !!!!!! This is why
They should also interview the financial officials in hk
USD being a global tender, and US making minor tweaks for its own good,
has far worse global consequences.
US needs to think and take ownership of global countries, if it wants to maintain USD as global currency.
But no. US doesn't want any accountability of anything that goes wrong.
The US has to take ownership of global countries? Are you high?
@@EliF-ge5bu If it wants to maintain the status quo of thinking that it dominates the world, then yes.
Hahha...but the US being US doesn't give a rat ass about anyone but itself....
25% interest on loans is insane. How loans companies are allowed to charge life ruining sums in fees is an international crime
I bet that... because of this situation as well... these individuals.. are carry a chip on their shoulders as well.. It is also similar to.. how some people behave with money as well. Like some of the posts that I see sometimes online from Vietnam or from Indonesia.. they have no concept.. of.. how credit cards are... Those loans are still there... Cos they stated that... or their assumption is that, those debts will be wiped. (Only if you stayed within your own home country... and not treat this as so when abroad in the USA, say.) They don't get that in the USA, you do have to pay it back as well... they also don't realise that, many people in the USA.. or in the UK, most of them live off charity or trusts money now. They don't live off their own business or private money... Which is why their approach or assumption towards money is such that "they must have made a lot of money before I did from businesses"... That isn't necessarily true per se.
I was just a kid in Hong Kong back in 1998 that knew hardly anything, but even I remember the city's government, led by the treasurer Donald Tsang, declaring all-out war against Soros and others to hold the HKD-USD exchange rate. I didn't understand its importance then, but now I see that it was really fortunate that Hong Kong had the immense foreign reserves (which the speculators underestimated) to defend the exchange rate that most other Asian countries didn't have, or we would have gone the same way too...
That’s because of the china central government use all the reserves to support hongkong, ironically DW didn’t mention it😢
@@iamfrommop Actually Hong Kong had its own reserves, built up from way before the handover (which was only one year prior), so no. I have no doubt Beijing would have helped if it was deemed necessary, but Hong Kong did not need the help. Beijing did voice support for the HK government's plan of action though. Unlike China nowadays, China was very hands-off Hong Kong in the initial years after the handover
@@iamfrommop hk withstood the afc by its own by its own reserve. There is no help whatsoever from China. Please don’t spread the CCP propaganda.
It would be great to have transcripts available for complex documentaries as articles on the DW website. I am suggesting it in general, not for just this video, because DW Documentary represents a higher quality of video essays that are already exceeding the intensity of lectures. Specific content for non-specialised audiences can be cognitively challenging at times to follow, memorise or emplace. Transcripts could allow more inclusivity and could lead to a higher quality of reflecting discussion within and beyond the comment section.
great summary!
This is the content I'm here for
I grew up (b. 1958) through LSD and rock music and have never understood why so many of my generation followed greed and image. I thought we knew better.
I was a university of Indonesia student 1995-1999, so I witnessed the crisis brewing, Thailand baht tumbled, rupiah exchange rate band removed, inflation soared, students demonstrations and shooting, the 1998 riot and rupiah hitting 17000 per usd in intraday (blackmarket hit above 20,000), Suharto resignation, both my parents lost jobs, then the Reformasi Era.
I still can never take big bets and always keep spare cash and always low debt level. The crisis taught us that you never know when crisis hits.
When 2008 happened, I was a reporter for Bloomberg. I remember saying to one of my editors in early 2008 "the west never learned from Asian 1997-1998 crisis. This can blow up" it did few months later. I was pissed.
I greatly enjoyed watching this video. Will the world ever truly learn the key lessons from past mistakes?
No
History always repeats itself
After 1997 came Lehman Brothers and contagion
Now the Ukraine and inflation will dpn compound into another crisis
This interconnectedness is killing us.
I grew up in Thailand during the 90s. I remember seeing news of people committing suicide because of debt everyday during the late 90s
@DW Documentary Thank you for another good small documentary. To the editors of the video, try not to cut picture and sound at the same time, it makes the shift really abrupt, let the sound flow over into the next frame, then fade in a new sound track. Cutting picture and sound in the same frame should be avoided :D
All Asian economy including monetary fund depends always with the US. Should the US be worried about this, it will drop the value of US dollor all over the world not only Asian countries.
❤️ DW Documentaries
We Indians should be watching Chee News & Times Bow Bow isnt it ? ❤ Sudhir's DNA Analysis Documentaries.
very factual documentary
Financial sectors should be smaller.
We don't need more scammers in fancy offices doing nothing but talking bullshit.
We need more honest businesses and engineers.
Who's gonna provide them with financing though?
At 11:51 The IMF is not mandated to oversee the global financial markets, this is grossly inacurate
Thank you DW for this great,insightful and knowledgeable documentary.Keep it up 👍.
Watch this documentary. Then watch Squid Game. A lot more insightful that way.
@@williamyoung9401 Iam not into Korean stuff.
Great documentary, as always.
Korea went through most harsh 1997 in Asia
Russia in 1992: first time?
It is always funny to see what greed did. The reason nb helped asia was that a lof of people made billions by profiting from their suffering
South korea was just that
GREAT EPISODES , i have watched quite a few
look into the ban on alcohol in gujarat state of India
Brilliant doco…as always!
Its so good it will be bought by private company so public cannot watch it. Happened with DW Doc on Iraq War.
Crazy that speculators literally chewed up and spit out an entire developing nations gdp just for a quick buck
I was 8 years old living in Thailand in 1997. I remembered the year and actually, you can still see a lot of the fallout even now in Thailand. I was studying in a somewhat prestigious school and remembered that one of my friend's dad who was a SME owner bankrupted and had to make/sell small sandwiches. He packed them in a carrying box and walked around the CBD of Bangkok and to our school everyday. I still remember government campaign asking every able citizen to donate their gold to create some credit for the country. Definetely harder and deeper fall than South Korea.1997 is definitely a crisis Thai etchs deep.
Afterward, so many rules have been introduced on the financial sector here. The banking licenses become impossible to get and the only practical way is to takeover an existing bank just to get a license. The reserve ratio at the bank is relatively high. Thai Central Bank policy is super conservative since 1997. Now Thailand has very high foreign reserve currency just sitting around in the account, doing nothing, because anyone who suggest otherwise will be bombshelled about 1997 lesson. Well, it is a somewhat financial safe haven in the region right now because of 1997 crisis though.
I don't really think we should put a blame on Soros though. I studied about the crisis quite much and can confidently say that it was Thai policies that were to blame. We were too confident, too arrogant to accept that the system's foundation was weak. We saw UK in 1990 was attacked in a very similar manner but we did not learn. Since there was a precedent, even if there were no Soros, someone else would attack instead. No hard feeling, it just money. And as the guy in the documentary said, Thailand is too small to fight the market. The sad truth is. many policy makers from that era have not pay for their action. These people were the insider and they decided when the Thailand Central Bank would give in and could front run (and I strongly believe some did). Sad that our politician never learn (or perhaps they do? maybe that is why Thailand still has a failed political system).
I never imagined you could short sale currency like real estate, stocks or other financial instruments and products! WOW!
Thailand can be a good place to live and have a business.
Thailand exports 40% of the food it grows.
Thailand is a large manufacturer in the world.
Thailand has a trade surplus exporting a lot
A lot of international companies are manufacturing in Thailand.
Thailand just has to make sure that it doesn't succumb to USA demands.
Thailand has a good relationship with Russia, China and India.
Soros and the IMF (International Mafia Fund) basically shafted Thailand in 1997/98.
People in thailand hate him to this day.if i remember correctly there was a death warrant for him in malaysia.
Economic investigator Frank G Melbourne Australia 🇦🇺 still watching this very informative content cheers Frank