The 1997 Asian Financial Crisis: How Thailand Destroyed 5 Economies in 6 Months | Economic Collapse

Описание: July 2nd, 1997. Thailand's currency collapses. Within six months, five Asian economies are destroyed, trillions in wealth vanish, and the world nearly faces another Great Depression.
The 1997 Asian Financial Crisis turned the Asian Economic Miracle into a nightmare overnight. Thailand's baht lost 50% of its value. Indonesia's rupiah crashed 80%. South Korea, the 11th largest economy, nearly went bankrupt. Millions fell back into poverty. Governments collapsed. Riots erupted. And it all started with one overvalued currency and speculators who called the bluff.
🎯 WHAT THIS VIDEO COVERS:

How Thailand's baht collapse on July 2, 1997 triggered the crisis
The Asian Economic Miracle: decades of 8-10% growth that seemed unstoppable
The fatal mistake: borrowing billions in US dollars while earning in local currency
Currency pegs and why they created an irresistible target for speculators
The domino effect: Thailand → Indonesia → South Korea → Malaysia → Hong Kong
IMF's $57 billion bailout of South Korea and the brutal conditions attached
How the crisis nearly destroyed the global financial system
The human cost: suicides, poverty, and shattered dreams

💥 THE COLLAPSE BY COUNTRY:
THAILAND: Baht lost 50% of value. Property bubble burst. Finance companies collapsed. The patient zero of the crisis.
INDONESIA (WORST HIT): Rupiah crashed from 2,400 to 15,000 per dollar (80% loss). Banks failed by dozens. Riots killed over 1,000 people. President Suharto forced to resign after 32 years. Poverty rate doubled overnight.
SOUTH KOREA: Won collapsed. Chaebols (giant conglomerates) went bankrupt. Unemployment jumped from 2% to 8%. Required largest IMF bailout in history ($57 billion). Daewoo and other giants collapsed.
MALAYSIA: Refused IMF help. Imposed capital controls instead. Prime Minister Mahathir blamed George Soros. Recovered faster than countries that took IMF medicine.
HONG KONG: Government bought stocks directly to defend currency peg. Unprecedented market intervention. Survived by breaking every free-market rule.
💰 THE TRAP THEY FELL INTO:
Asian countries pegged their currencies to the US dollar at fixed rates. This seemed safe and attracted massive foreign investment. Companies borrowed billions in dollars because dollar interest rates were lower. But they earned revenue in baht, rupiah, won. As long as exchange rates stayed fixed, this worked. The moment currencies collapsed, debts became unpayable. A 25 million baht loan suddenly became 50 million baht. Profitable companies became insolvent overnight.
📉 THE WARNING SIGNS EVERYONE IGNORED:

Current account deficits of 8% of GDP (importing far more than exporting)
Massive property bubbles in Bangkok, Jakarta, Seoul
Banks making reckless loans to politically connected borrowers
Foreign currency reserves depleting as governments defended currency pegs
Export growth slowing while borrowing accelerated
George Soros and hedge funds smelling blood

🌍 HOW IT NEARLY WENT GLOBAL:
The crisis didn't stay in Asia. Japan's banks faced massive losses. Russia defaulted in 1998 as commodity prices collapsed. Brazil's currency came under attack. Then in September 1998, Long-Term Capital Management (LTCM)—a massive US hedge fund run by Nobel Prize winners—nearly collapsed. LTCM was so interconnected that its failure would have destroyed Wall Street. The Federal Reserve had to orchestrate an emergency bailout. The Asian crisis had nearly triggered a global meltdown.
😢 THE HUMAN COST:

Tens of millions fell back into poverty across Asia
Unemployment exploded (South Korea: 2% to 8% in months)
Suicide rates soared as businessmen lost everything
Children dropped out of school as families couldn't afford fees
Malnutrition increased dramatically
Middle-class families lost their savings overnight
"Lifetime employment" social contract in Korea shattered forever

🏦 THE IMF CONTROVERSY:
The International Monetary Fund provided bailouts totaling over $100 billion, but with brutal conditions: raise interest rates to 20%+, cut government spending, close banks, restructure companies. Critics say this "medicine" deepened the crisis and caused unnecessary suffering. Defenders say it restored confidence. Malaysia's rejection of IMF prescriptions and faster recovery suggests the IMF may have gotten it wrong.

🔔 SUBSCRIBE for deep dives into financial crises, economic collapses, market crashes, and the disasters that shaped global economics.

#AsianFinancialCrisis #1997Crisis #Thailand #Indonesia #SouthKorea #IMF #CurrencyCrisis #EconomicCollapse #FinancialCrisis #GeorgeSoros #Contagion #EmergingMarkets #Documentary #Economics #Finance #GlobalCrisis