article; "Why did it happen?", on this web site: www.megastories.com/seasia/why/why.htm, I found out that Asia had been experiencing a miracle for the past 30 years, but they are now suffering a crisis. These economies are now experiencing collapsing currencies and depleting stock markets. The Asian countries at first borrowed a lot of money from the IMF and the World Bank and used it to invest in certain unprofitable ordeals. " The problem was bad in Thailand, where a succession of weak governments had allowed money to flood into unwanted skyscrapers rather than investing in roads and telecommunications, and education." (Directly from the article) "The unwise spending was the worst in South Korea where the entire economic system was based on governments encouraging banks to make cheap loans to big conglomerates for continued expansion regardless of world demand." (Directly from article) They borrowed the money in US dollars thinking that they would have no problems paying the debts off, because their currency's exchange rates were pegged to the US dollar. They borrowed money in dollars because their own currency's interest rates were too small. In the middle of 1995, the US dollar started to rise against most of the world's other currencies. Because the Asian exchange rates of local currencies were pegged to the US dollar they rose with the US dollar. The ...
