Asian Financial Crisis 1995-98: Birth of the Age of Debt

The Asian Financial Crisis of 1995-98 was a major economic crisis that caused hundreds of deaths, political upheaval, and investor losses of hundreds of billions of dollars. This crisis saw the US dollar value of some Asian stock markets decline by ninety percent. Russell Napier's book "The Asian Financial Crisis 1995-98: A Personal Journey" charts his personal journey during the crisis and provides an explanation of how it created the foundations of an age of debt that has changed the modern world.

Format: Hardback
Length: 390 pages
Publication date: 20 July 2021
Publisher: Harriman House Publishing

The Asian Financial Crisis of 1995-98 was a devastating economic event that spread across Asia, turning a miracle into a nightmare. This crisis resulted in hundreds of deaths, the removal of political strongmen, and a staggering loss of hundreds of billions of dollars by investors. The crisis had a profound impact on the US dollar value of some Asian stock markets, with some markets declining by as much as ninety percent. The question remains: why did almost no one see this crisis coming?

The Asian Financial Crisis 1995-98, written by Russell Napier, offers a personal account of the crisis as he wrote daily for institutional investors about an increasingly uncertain future. The book relies on contemporaneous commentary to chart the mistakes and successes of investors in their battle for investment survival in Asia during this period. This is not just a guide for investors navigating financial markets; it also provides an explanation of how this crisis laid the foundations for an age of debt that has transformed the modern world.

The crisis began in Thailand in July 1997, when the Thai baht lost value against the US dollar. This devaluation led to a surge in inflation, which in turn led to a loss of confidence in the Thai government and its economic policies. The crisis quickly spread to other Asian countries, including Indonesia, Malaysia, and South Korea, as investors withdrew their funds from these markets.

One of the key mistakes that investors made during the crisis was overconfidence in the Asian economic model. Many investors believed that the growth of these countries was unstoppable and that their economies were immune to external shocks. This overconfidence led to a lack of diversification in investment portfolios and a reliance on high-risk, high-return investments.

Another mistake that investors made was a lack of understanding of the underlying economic issues in the Asian countries. Many investors were focused on short-term gains and were not concerned about the long-term sustainability of the economic growth. This lack of understanding led to a misvaluation of the risk associated with these investments and a failure to recognize the potential for economic downturns.

Despite these mistakes, there were also some successes that investors achieved during the crisis. Some investors were able to identify the risks associated with high-risk investments and diversify their portfolios accordingly. Others were able to recognize the potential for economic recovery in certain Asian countries and invest in these markets at a low point.

The Asian Financial Crisis of 1995-98 had a profound impact on the global economy. It led to a loss of confidence in the Asian economic model and a shift in investment away from these markets. The crisis also highlighted the importance of diversification and risk management in investment portfolios.

In conclusion, the Asian Financial Crisis of 1995-98 was a devastating economic event that turned a miracle into a nightmare. The crisis was caused by a combination of overconfidence, a lack of understanding of the underlying economic issues, and a lack of diversification in investment portfolios. Despite these mistakes, there were also some successes that investors achieved. The crisis has had a lasting impact on the global economy and has highlighted the importance of risk management and diversification in investment portfolios.

Weight: 740g
Dimension: 166 x 242 x 30 (mm)
ISBN-13: 9780857199140