128shot
DP Veteran
- Joined
- Jul 19, 2005
- Messages
- 1,258
- Reaction score
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- Gender
- Male
- Political Leaning
- Independent
From: http://www.business-in-asia.com/dollar_crisis.html
Read the rest, it looks like our monetary system is always doomed to burst.
Since 1986 I have worked in Asia as a securities analyst for international brokerage firms. From 1990 to 1996, I was based in Bangkok, heading up a large team of research analysts. We analyzed and wrote research reports on most of the listed Thai companies, as well as most of the major industries and the overall economy. In the early 1990s, the Thai economy really was experiencing something of an economic miracle. The fundamentals and growth prospects of the companies were very solid. By mid-1993, however, that was no longer the case. The companies had borrowed too much and investors too much. It was difficult to see how they would be able to generate enough revenue to repay their debt. I turned bearish on Thailand by the end of that year, but the bubble economy continued to expand…for four more years! I wanted to understand what was happening and why. I began reading the economic classics: Keynes, Schumpeter, Friedman and Rostow. By the time the bubble finally popped in mid-1997, I thought I had pieced it together. I had the fortunate opportunity to work as a consultant for the IMF in Thailand for three weeks in May of 1998 and then went to work for the World Bank in Washington later that year. While I was there, I believe I was able to put the rest of the pieces of the puzzle together. So, in short, it was the economic bubble in Thailand that taught me about the flaws in the international monetary systems.
Read the rest, it looks like our monetary system is always doomed to burst.