2007-08-16 22:59:28 · 1 answers · asked by natsumexmikan 2 in Business & Finance ➔ Other - Business & Finance
Is it similar to the present U.S. subprime problem?
2007-08-16 23:01:51 · update #1
The 1997 Asian financial crisis had started with a dramatic 20 per cent devaluation of the Thai baht on July 2, when Thailand lost the battle against currency speculators who soon turned their attention to other Asian economies, from the Philippines and Indonesia to Hong Kong. Stock markets crashed, a banking crisis followed and many companies went bust.
It is not the same as the current subprime trouble in the US. The current trouble arose because US financial institutions made loans to customers who were unable to repay those mortgage loans. The homes had to be put up for forced sale and the prices fetched couldn't cover the loans outstanding.
2007-08-17 02:00:40 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋