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Asian Financial Crisis

.. ill start buying the bonds and stocks. This will get the stockmarket of Japan back on track again. (Another country to look at is Hong Kong. Hong has stayed- while everyone else has devalued – in a situation where it cannot support its currency rate against the US dollar. So, the peope of Hong Kong end up not being able to pay for all their daily needs for the price of things have zoomed.

As the Chinese economy is shrinking so extravagantly that it’s destroying itself, all possibilities for trade and investment in and out of China, (which are primary for Hong Kong) are dismissed. The economic problems that Hong Kong are currently dealing with are obviously associated to the Asian financial crisis because the breakdown of expansion across the region has left Hong Kong on its own. Hong Kong is deteriorating as an economy. ) website: g2.htm The solution to Hong Kongs main problem is obvious. Fix China!! China is the main reason, in my opinion, that Hong Kong is having these problems.

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They are loosing all sights of trade and such with the two countries, and that is pretty much what the economy of Hong Kong depends on. So, as soon as the UN helps China, Hong Kong will be well on its way to recovery. (Now, you need ot keep close in mind that the countries of Asia are not the only ones being effected by this terrifing crisis. there are massive layoffs are occurring in the US, as a result of tthe Asian financial crisis. People all over are seeing the ugly face of the Asian financil crisis.

Here is an exserpt from a website and e-zine that helps people in the US find jobs: “Well, wouldn’t you know it. I started this series a few weeks ago, telling you how great the job market is, then the Asian Financial Crisis rears its ugly head. Despite the shortage of technical workers and a robust US economy, spotty to massive layoffs are occurring in vulnerable industries. Semiconductor, computer and manufacturing companies are among the most affected. Some forecasters say that the worst is yet to come.

Before you accept a job, you’d be wise to find out if the company is in one of the vulnerable industries!” This is just one more effect of this disastrous crisis.) website: a070698.htm?terms=asian+financial+crisis+AND+new OB=home (Now weve seen actual countries and the state they are in, but we shouldnt forget how the people of Asia feel about what is going on. Believe me, they are not interested in what is going on. No, they are worried. Worried beyond belief. Including the US people, they are fearing that the crisis will effect the US stock market. I read an article the other day where a reporter was interviewing some university students in Asia. They spoke about there fears of not being able to continue there education and not being able to find work after graduating.

Now is that a way to live? In fear of loosing everything you live for because the government could not take control over the economy well enough? I dont think so! It is time to do something about it! ) “Will Asia Hurt U.S. Investors?” by Michael Griffis, Dateline: 11/17/97 (There are many views on what exactly to do about it. Secretary of State, Madeline Albright, has her opinion on the matter. The financial crisis, she said, “is not something that is just specific to Asia where it began but is a global financial problem and has to be dealt with not just by the United States but by the other industrialized countries working with other countries in the world.” She said the steps for recovery are not just American but suitable to free market economies moving into the 21st Century. Other people have different types of ideas…the decision of Prime Minister Mahatir Mohamad to fire and then arrest his Deputy Prime Minister, who also served as his Finance Minister, is another desperate way of trying to solve this crisis.

Robert E. Rubin, announced that “In the face of this challenge, our first too is clear: to help stabilize the immediate crisis.” Yet, what most find so unclear is how to actually perform that task, and that is what needs to be done as soon as possible. Well, looking back, we see that there are countries that were deeply effected, and countries that werent that badly effected by the crisis. We learned that Some of the causes for the crisis were too much over seas borrowing, the stock market and unorganization. We have successfully thought up different ways to solve the problem.

But, what if the United Nations had gotten involved? What would have been different then?) website: Well, I definitely think the UN should have gotten involved. Perhaps the International Bank for Reconstruction and Development (AKA the word bank) and the International Monetary Fund (the IMF) could have stepped in.After all, the World Bank is there to provide some leadership in international economic thinking, and we should have been doing better than others. They should have been there when the first signs of economic failure were shown and they should have made sure the currency rate stayed steady. Then they should have guided the Asian countries on how to increase their GNP. They would have to increase their value of work and the value and quantity of their goods. Maybe even enough actually be worth the price it ended up costing because of inflation and the rise currency rate.

Or perhaps they should have paid more attention to international borrowing. They should of made sure these countries only borrowed so much. They should have took more of an interest in the economic affairs of these countries, and made it a point to make them stop borrowing more than they can pay back in a matter of, oh lets say, 5 years (at the rate they were going at the time.). Perhaps, then, we would, will and could have a stable economy in Asia, the largest continent in the world.


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