As early as 1992, people in Thailand's economic circles, especially those in the financial circles, had a strange idea out of nowhere, thinking that Bangkok should replace Hong Kong, which was about to return to China, and become the financial center of Southeast Asia and the second Hong Kong. Driven and stimulated by this unrealistic idea, which is tantamount to a great leap forward, the Thai government has wishfully opened the door of the financial market to foreign capital. Sure enough, foreign banks brought a large number of low-interest dollar loans, and Thailand's financial industry tasted the sweetness of this, and began to have a strong interest in basic industries such as real estate. As a result, many banks rushed to invest nearly 30% of their loans in the real estate industry, making the real estate industry develop blindly like a little fat man in Beijing, China, with a serious imbalance between supply and demand. The subsequent downturn in the real estate market has led to a sharp increase in bad debts and bad debts of banks, many loans are difficult to recover, and the quality of assets has deteriorated seriously. By the end of June 1997,gynostemma pentaphyllum leaf extract, Thailand's financial institutions had issued 486 billion baht worth of risky loans, accounting for 31.3% of the total loans, according to data from Thailand cited by Japan's Daiwa Research Institute. 5%。 Some people even estimate that the bad debts of Thailand's financial industry are as high as 800 billion to 900 billion Thai dollars (about 310-35 billion US dollars). The wanton squandering of low-interest capital and the huge deficit of needed projects can easily lead to financial crisis. In 1996, Thailand had a deficit of 8. 5% of its gross domestic product (GDP). In 1994, when Mexico's financial debt crisis broke out, it was only 7. 8％。 In this way, the outbreak of the crisis in Thailand is normal. Thailand is playing with fire,jujube seed powder, and Soros has sent a message to his men. From the beginning of 1997, the real estate bubble in Thailand began to lose its luster and soon tended to burst. Foreign investors sold the Thai baht one after another. As soon as Soros saw that the time had come, he fished in troubled waters and led the international financial speculators to concentrate on attacking the Thai baht fortress built on the beach. All of a sudden, Thailand's financial position can be dangerous, the smoke of gunpowder filled the air, and its shock spread to the entire Southeast Asian financial market. Attack in the third quarter! Attack! Attack again In the 1990s, the international financial market experienced repeated storms and crises. Economists all believe that there is an invisible, intangible but very obvious "giant hand" hovering around the international financial market, a terrible devil-like giant hand. For this giant hand, economists have given it a more popular term: hot money. According to the rough statistics of the International Monetary Fund, there are at least 7% of short-term bank deposits and other short-term securities circulating in the international financial market. Two trillion dollars, and there is a growing trend. The development of world economic integration makes it possible for huge amounts of hot money to flow rapidly around the world. To mobilize huge amounts of money, even just make a phone call or answer a keyboard, pumpkin seed extract ,lycopene for skin, big transactions in the market can be closed within a second, on the contrary, to avoid risk. The rapid withdrawal of funds is also easy. Since 1992, when Soros led the people to defeat the pound, and in 1994, when Soros ganged up with other big players to make a scene in the Heavenly Palace in Mexico, making the largest country in Central America almost smash the pot and sell the iron, the international community has really experienced the power of Soros, and all countries seem to be in awe of him. Under the leadership of Soros, the hot money in the international financial market is like a wild horse out of the group, which is elusive. When the rate of return on capital in a certain area is considerable, hot money will come in swarms, and when there is a sign of trouble, especially when the goal is achieved, it will disappear without a trace. On July 25, 1997, Malaysian Prime Minister Mahathir denounced the world-famous speculator George Soros as the "black hand" behind the sharp devaluation of Southeast Asian currencies by speculators. There are signs that the "legendary figure" of the Western financial market, the leader of the Hedge Trading Fund, has targeted the emerging markets in Asia and is waiting for an opportunity to attack since he won a great victory in selling the pound in 1992.
The group of managers in charge of hedge funds made their debut in Malaysia in 1993. At that time, investors generally believed that the market value of the Malaysian currency ringgit was undervalued, and it seemed that it would undoubtedly rise. So under the call of Soros, international hot money began to encircle and suppress the ringgit. However, Mahathir refused to buy Soros's account and resolutely defended the ringgit with a low market value. Mahathir and Soros each commanded one side and launched a fierce fight in the financial market. In January 1994, Mahathir ordered to strengthen the control of the capital market, Soros saw that the opportunity was not much, but had no choice but to lead all the big speculators to retreat, rest their troops and horses, in order to prepare for another war. In the twinkling of an eye, two years later, the economy of Southeast Asian countries exploded and prosperity became more and more obvious. As inflation is rising steadily and the threat of overheating is increasing, the interest rates of Southeast Asian countries are rising under the guidance of the central banks of various countries. Although this can slow down the rising speed of inflation, it also attracts a large number of hot money to arbitrage and send troops to fight again for Soros and others. New opportunities were created. A senior executive at Citibank's Bangkok branch pointed out that Thai bankers handle as much as $2 billion to $3 billion in overseas arbitrage hot money every day. In addition.. Because of their profitability, banks themselves have borrowed from overseas dollars, yen and marks at interest rates 3-5 percentage points lower than those of Thai baht, ringgit and other currencies, and then sold these currencies to earn interest margins. According to statistics, Thailand's commercial banks have borrowed more than $1 trillion overseas, 95% of which are short-term loans of less than one year. According to the Singapore Foreign Exchange Market, in the foreign exchange markets in Southeast Asia, the total daily trading value of the Asian currency forward foreign exchange market is about US $6 billion, with the fastest growing volume in Thailand. In February 1997, the International Monetary Fund (IMF) warned that just two years after the Mexican financial crisis,lutein eye complex, a large amount of hot money was pouring into emerging markets such as Asia at a record pace, and that "irrational enthusiasm" was widespread in these markets, which could lead to painful shocks. prius-biotech.com