Thailand.

Bangkok.

Hot summer.

It’s the time when watermelons are on the market.

Carrie held her mother's hand and walked on the street, looking at the beautiful new house. The eight-year-old girl had longing in her eyes.

"Mom! When can we live in such a beautiful house?"

Mom sighed, "Houses here are too expensive. Your dad is unemployed again, and we can't afford one."

The little girl asked innocently: "Mom, why is Dad unemployed?"

“Because there are too many houses to sell.”

“If it can’t be sold, why can’t we afford it?”

"Didn't I just tell you that your father lost his job?"

The mother's voice became much higher.

The little girl looked aggrieved and didn't understand why her mother was so angry.

It's just that the little girl didn't understand.

In fact, her mother didn't understand why.

And at this time.

The little girl's father, Kawan, stood on a street with many people, holding signs in his hands, looking for a job.

But there are too many people looking for jobs.

I don’t know why, but many factories have gone bankrupt in the past two years.

Although some companies did not go bankrupt, they reduced salaries or laid off large numbers of employees.

Only a few companies engaged in raw material export or rough processing are still operating, but the wages are low and the work is hard, and they can hardly save any money at the end of the month.

Kawan didn't understand why.

All I know is that the boss sold all his property last month and went to the United States with the money.

Having lost his job, he could only find some temporary work by chance every day to barely support his family.

Half a day passed.

The young and strong people around were called away.

Only a group of elderly people over 30 years old were left behind.

Based on their usual experience, they knew that they might not be able to find a job today. So the group of people sighed, gathered together, smoked cheap cigarettes and started complaining.

"Alas! It seems there is no hope today."

"Why is it so hard to find a job now? There was a labor shortage two years ago, but now it's suddenly gone."

"It's all the damn Japanese' fault!"

"Little Japan?"

"Yes! Don't you see that everyone is buying Japanese products? No one is buying our own products. The factory can't make money and can't continue to operate. We will definitely not need anyone!"

"Those Thai traitors who buy Japanese goods are so despicable!"

“Why don’t they buy our own products?”

"Japanese products are so expensive, they don't even know our Thai products, rich people are traitors."

“.”

Production.

consumption.

Which is more important in the economy? This question is like the question of which is more important, the sun or the moon.

But if some delicate balance is broken, it will inevitably turn into a disaster.

Second half of 1996.

The pace of Japan's overseas strategic investment has slowed down. At the same time, some Japanese companies have also returned to Japan due to lower costs caused by the depreciation of the yen.

While taking away the foreign exchange investment costs, Japan's abandonment of large-scale growth in mid-range manufacturing soon began to impact the manufacturing and economies of Asian countries.

The first country to suffer misfortune was Thailand.

Because of the full liberalization of its financial markets and the establishment of an offshore financial center, Thailand has risen from the last of the four little tigers to the first in recent years and is expected to become the second developed country in Asia.

However, success or failure depends on the complete market.

Raw materials without technical content, jewelry, and rough primary processing level have meager export profits.

But on the import side, they are all high-tech products such as televisions, motorcycles, air conditioners, tape recorders, game consoles, and communication equipment.

The rapid expansion of the trade deficit has led to an unprecedented decline in foreign exchange reserves.

The local mid-range manufacturing industry has been hit again by the price cuts of Japanese goods, and cheap labor has been defeated by even cheaper automation.

The stock market crashed and the real estate market collapsed.

Realizing the seriousness of the problem, BOT abandoned everything and held on to the last line of defense of the exchange rate.

Yes.

An Asian financial crisis quietly arrived.

The first to collapse was Thailand.

With the yen depreciating to 140, Japan's manufacturing industry has once again demonstrated the terrifying destructive power that swept across the European and American markets a decade ago.

But compared with the technology chains of developed countries in Europe and the United States, Asia's backward production level and manufacturing technology are like the primitive embryonic stage.

In just two years, Thailand finally realized why Britain, France, the United States and Germany forced the appreciation of the yen, but its manufacturing industry had collapsed completely and it was no longer possible to recover.

The real economy is the foundation of finance.

When there is a fundamental problem, financial problems will inevitably arise as well.

Although the Bank of Thailand has repeatedly announced that BOT has the ability to ensure the stability of the Thai baht, Soros cited a number of data in the Wall Street Journal to warn that the expansion of Thailand's trade deficit could lead to a serious recession and hoped that Thailand could recognize the seriousness of the problem.

Like a clarion call for an attack.

Financial institutions, led by Quantum Fund, sold Thai baht on a large scale in the offshore market.

On July 2, Thailand announced that it would abandon the fixed exchange rate system and implement a floating exchange rate system.

Soon, the storm began to affect Malaysia, Singapore, South Korea, and other places.

In mid-November, a financial crisis also broke out in South Korea. On the 17th, the exchange rate of the Korean won against the US dollar fell to a record low of 1008:1.

Japan, Tokyo.

Because one-third of South Korea's GDP comes from investments by major Japanese conglomerates, the financial community held an emergency meeting overnight.

Most of them are presidents and vice presidents from major financial institutions.

After discussion.

If South Korea's stocks, bonds and currencies are allowed to suffer a triple kill.

Japan itself may also be affected.

after all.

South Korea is the first front line of Japan's overseas strategy. Even Japan's Seibo has cooperated with Sony to invest in Samsung. Other banks and securities companies of all sizes also hold assets of varying sizes in South Korea.

After some discussion.

Major financial groups are preparing to jointly put out 1 trillion won to buy Korean won and stabilize the Korean market.

However, before any action could be taken, a phone call from the United States ruined the stabilization plan.

Ministry of Finance.

Listening to Kissinger's bland conversation.

In the end, Haneda Tsutomu smiled bitterly and had no choice but to give in.

After all, in this division, Japan has already snatched away most of the manufacturing market. If financial capital continues to be greedy, it will probably be hit again by the Plaza Accord.

Facing South Korea's request for help.

final.

Japan ultimately did not intervene, and the South Korean government had to seek help from the International Monetary Fund to temporarily control the crisis.

But by December 13, the won-dollar exchange rate had dropped to 1737.60:1.

The president called on the people to donate gold and US dollars to support their national currencies, but it was just a drop in the bucket and everyone's wealth was lost in the sea that day.

Even when the South Korean president bowed his head and sought help from the United States, the other side remained silent for a while and only said that this was a Wall Street business.

This year.

South Korea’s bankrupt stock market, bond market, property market, and foreign exchange market all collapsed.

This year.

Sixty-five percent of South Korea's companies went bankrupt, 70 percent of its financial institutions went bankrupt, tens of millions of people lost their jobs, and more than ten thousand people committed suicide due to debt.

soon.

The won crisis finally hit the Japanese financial industry, which had large investments in South Korea.

In just one month, eight banks in Japan's financial industry went bankrupt, two securities firms went bankrupt, and even the president of Dai-ichi Kangyo chose to commit suicide at home to apologize.

When an avalanche comes.

No snowflake is innocent.

That year, Haiya Real Estate's price fell from a peak of 11,000 yuan to 700 yuan, and Haiya Development Bank was forced to go bankrupt due to insolvency.

The sharp depreciation of currencies in many countries has impacted foreign trade companies in Asian countries, causing the bankruptcy of many large Asian companies, layoffs of workers, and social and economic depression.

1998.

The debt ratio of the Dahan banking industry exceeds 40 percent.

Credit unions are in debt.

And at the same time.

A wave of layoffs broke out.

The four major banks have debts exceeding 36%, and are technically bankrupt. They have no choice but to form asset management companies to transfer debts and plan to go public.