Asian Financial Crisis
Have you ever been in a situation where you were low cash and in debt? Well, I
know I have. I remember one time when I had used up all of my money for the
month, and owed, at the same time, my sister ten dollars. Boy, that was pure
hell. You canít buy anything, and you feel like you have no control over
anything. Well, imagine an entire continent in a financial rut. That is what is
currently going on in Asia. This dilemma is known as the Asian Financial Crisis.

Now, what exactly is the Asian Financial Crisis? Well, it is the current
imbalance of Asiaís economy. While some areas are doing great, most areas are
poor and economically unstable . Currency value has gone down drastically, the
stock market is at an all time low, and people all over the continent are
fearing for their futures. The United Nations definitely should get involved in
this crisis. They should have been more involved in international loaning, which
would have helped, if not prevented the debt Asia is in now. They also should
have made sure that the currency rate stayed stable the second the stock market
began to drop. Perhaps, if the UN was more involved in Asiaís economic affairs
this crisis would not be in this state of mishap. (There were many things that
caused the Asian Financial Crisis. One of them would have to be overseas
borrowing. It is very important to understand that if the country is borrowing
from the rest of the earth its foreign debt will grow over time. Thus, flows
(items on income and cash flow statements) translate into changes in stocks
(balance sheet items, like family fortune, the stock of capital, government
debt, and net foreign debt). So, in the end, Asian countries borrowed too much,
and were careful too little. Companies in the worst-hit countries, South Korea,

Indonesia and Thailand, borrowed boundless sums of money as their economies
boomed. T Even worse, they borrowed much of it in US dollars because interest
rates were much lower than on their own currencies. The exchange rates of local
currencies were pegged against the dollar, so they had no fears about having to
earn money in local currency to pay back loans in dollars.hey didnít realize
at the time what a mess they were getting themselves into. Another thing to keep
in mind when you try to figure out what caused the crisis was the fact the Asian
economic strategy was very unorganized. See, their economy was based on trust,
not organization and rules. The people who bought and borrowed and sold and lent
were all "friends". That meant they could trust that their "friend"
would not disobey disserve them. It meant that they could trust what was going
on around them was right. It meant that they didnít have to have special rules
and laws to make sure that their customers acted morally. So, think about what
happened when the old manager died, and some new guy came in--Uh oh. Chaos
alert! ) website: http://1208.921.80/hotasia.htm AND website: http://www.worldcom.nl/ni/issues/asia.htm

AND (All these things I just told you about triggered the stock market to flop.

People, when they get scared the market is about to drop, flea and quickly sell
all of their stock. So, when people started to finally realize that what was
going on was bad, they made it even worse by selling their stock causing the
stock market to plunge even lower. So, all in all, a lot of not so good things
were going around Asia and caused financial chaos in the Asian countries.

Although the crisis was and is a continental issue, it effected each country
differently. If the UN were to interfere with this issue, they would need to
understand the problem from all different angles. Each country needs a certain
from of help.) website: http://208.240.92.80/adjustmt.htm (One of the countries
that was greatly effected by the crisis was Japan. Until the nineties, the

Japanese economy had been expanding rapidly and was doing unusually well. Then,
all of a sudden, in 1990, there was a substantial drop in the stock market, and
in real estate. In various ways Japan is both the cause and the soltion of the
crisis on hand here. Especially because Japan remains the economic locomotive of
the region. It ihas by far the largest economy. It was until recently a 4
trillion dollar economy. That is just mammoth compared to any other power. So
the rest of the region suffers as a result of Japan is not maturing . Japan
really hasn\'t