The Asian crisis

The Asian crisis was officially assumed on 2 July 1997. Arose spontaneously even though the statistics on production and export of these countries already have symptoms that the economies of the Asia-Pacific (AP) were not "good."
It originated in Thailand, when the Central Bank began to have problems with capital outflows from Thailand.

Holders of capital intended to buy dollars in order to take the reserves they had in thecountry. This high demand for dollars in the face of short supply 'Baat' (Thai currency) led to the depletion and 2 July 1997 the Thai government could no longer protect the national currency.
But how it came to Thailand at this point, and how it spread to the whole AP?

Even then, the growth of the economies of this region depended on the growth rates of exports. One of the products of greatest importance in the structure of exports were thecomputer products, whose main destination was the United States.

Now by this time a crisis arose in the computer industry in the U.S. which deeply shook theeconomies of these countries.
Also the growth and excitement of receiving FDI in the years preceding the crisis led to a large increase in the construction of real estate: this, created a false sense that everything would be very easy and the economy continue to grow without problems.

These adverse factors eventually implode in a financial crisis in Thailand because in this country, the building was Financed by financial companies not regulated by the Central Government.

The asset quality of banks in Thailand, was one factor that caused the crisis in that country.
The crisis quickly spread to the neighbors. Even in countries such as Malaysia, who did not have the same problems that Thailand (or at least as serious), you begin to watch a similarcapital flight to Thailand.
The solution was to go abroad IMF, which in some countries, with the extreme case of Indonesia, the austerity measures were so radical that just further aggravate the economic downturn.

This initially only financial crisis, quickly became an economic and social crisis.

Indonesia is one of the countries most affected by the crisis and that most felt the impact of the recession on its economy, he was obliged to request outside assistance from the IMF. However, it was also one of the countries where aid has produced more drastic effects aggravating the recession.

Therefore, one of the pioneers in the search for solutions to get out of thiscatastrophic situation.

Soon other Asian countries that were in the same or similar situations, he would eventually follow in the footsteps.

Some of the solutions found to resolve this crisis can be reused to solve the current crisis because there are several parallels between the two crises (as this is also acrisis that began as a financial crisis).

This is why I put this post here. Among the various measures that can highlight the fact that they are not implemented in most countries are:

- Creation of funds to buy the banks bad debts:
- Reform of the banking system, among others, through the reform of the merger of banks at risk of failure: it was a way to re-finance banks;

It should be recalled that the 2008 crisis also began as a financial crisis.

Since that time, the Southeast Asian countries have carefully supervised the banking system.
Something that Western countries have not imitated and that ended with the consequences that we saw in 2008.
I hope this video from youtube, help to realize this idea a little better, and be more rigorous than my comments.