It’s like the sea surface is being squeezed by depth.

The outflow of funds from the stock market and real estate pushed the exchange rate of the US dollar to 1:140 against the Japanese yen.

suddenly.

Koreans found themselves inexplicably unemployed.

The market was invaded by Japanese goods.

Korean factories are unable to sell their products, and are laying off employees and cutting wages on a large scale. Many people are vying for one job, even if the salary is reduced by 20%.

Demonstrations against Japanese goods broke out.

A large number of Sony tape recorders, Canon color TVs, Panasonic air conditioners, and Toyota cars were smashed.

However, such violent acts could not prevent the dumping of high-quality and low-priced Japanese goods. The ridicule of Japan a year ago was a complete defeat for the Korean manufacturing industry in the face of absolute technology.

Thailand.

central bank.

As Japan’s trade exports grew, Thailand’s export trade volume declined, and as early as a year ago, it had turned from a surplus to a deficit.

And in the long run.

Because of the fixed exchange rate, the central bank has to deal with the carry trade between the Japanese yen and the Thai baht, and the hard-earned foreign exchange has been flowing out on a large scale, leaving less than 20 billion US dollars.

Keeping the house and the exchange rate has become a difficult choice.

If the exchange rate is maintained.

Imports can be cheaper.

But housing prices in Bangkok are already a major component of GDP and a powerful tool for labor transformation. If houses cannot be preserved, recession is inevitable.

The problem is that many companies have been forced to lay off employees and cut salaries due to poor sales.

This keeps going on.

I’m afraid the real estate can’t be saved.

suddenly.

Trader reports.

In the spot market, large quantities of Thai baht are being sold at a price of 1:25 yuan, and at the same time, large-scale short positions are being established in the offshore futures market.

BOT immediately ordered a buy-up and stabilized the market at the cost of $4 billion.

Wall Street, USA.

Quantum Fund.

Druckenmiller Stanley Druckenmiller looked at the Thai baht position that was forced to close, with a hint of amusement on his face.

This time, the test of the Thai baht resulted in a loss of 50 million US dollars.

However, judging from Thailand’s current share of trade exports, Thailand’s foreign exchange will dry up in a year at most.

the other side.

With the powerful force of Youlian UFJ, Hanshin acquired 38% of its shares in just half a month.

Using her power as the largest shareholder, Sakurako Ikeda directly dismissed the management team led by Hanshin President Oshihara.

Another month later, Hanshin Electric Railway and Hankyu Holdings merged to form Hanshin Hankyu Holdings, becoming the third largest group after Sanwa and Youlian.

Mitsui and Sumitomo suddenly discovered.

Times seem to have changed.

By leveraging the power of Internet finance, Youlian Group has controlled one-third of the country’s micro loans in just a few years.

Sanhe Bank has the largest business scope for small and medium-sized enterprises. If they continue to develop, a super financial institution will be born that even a large corporate alliance cannot compete with.

This is more terrifying than controlling business rights because controlling all small and medium-sized enterprises is equivalent to monopolizing the living environment of the grassroots…

…….

Chapter 420: The Destruction of the Financial Storm

Thailand.

Bangkok.

Hot summer.

It’s the time when watermelons are on the market.

Carrie held her mother’s hand and walked on the street, looking at the beautiful new house. The eight-year-old girl had longing in her eyes.

“Mom! When can we live in such a beautiful house?”

Mom sighed, “Houses here are too expensive. Your dad is unemployed again, and we can’t afford one.”

The little girl asked innocently: “Mom, why is Dad unemployed?”

“Because there are too many houses to sell.”

“If it can’t be sold, why can’t we afford it?”

“Didn’t I just tell you that your father lost his job?”

The mother’s voice became much higher.

The little girl looked aggrieved and didn’t understand why her mother was so angry.

It’s just that the little girl didn’t understand.

In fact, her mother didn’t understand why.

And at this time.

The little girl’s father, Kawan, stood on a street with many people, holding signs in his hands, looking for a job.

But there are too many people looking for jobs.

I don’t know why, but many factories have gone bankrupt in the past two years.

Although some companies did not go bankrupt, they reduced salaries or laid off large numbers of employees.

Only a few companies engaged in raw material export or rough processing are still operating, but the wages are low and the work is hard, and they can hardly save any money at the end of the month.

Kawan didn’t understand why.

All I know is that the boss sold all his property last month and went to the United States with the money.

Having lost his job, he could only find some temporary work by chance every day to barely support his family.

Half a day passed.

The young and strong people around were called away.

Only a group of elderly people over 30 years old were left behind.

Based on their usual experience, they knew that they might not be able to find a job today. So the group of people sighed, gathered together, smoked cheap cigarettes and started complaining.

“Alas! It seems there is no hope today.”

“Why is it so hard to find a job now? There was a labor shortage two years ago, but now it’s suddenly gone.”

“It’s all the damn Japanese’ fault!”

“Little Japan?”

“Yes! Don’t you see that everyone is buying Japanese products? No one is buying our own products. The factory can’t make money and can’t continue to operate. We will definitely not need anyone!”

“Those Thai traitors who buy Japanese goods are so despicable!”

“Why don’t they buy our own products?”

“Japanese goods are so expensive, they don’t even know our Thai goods, rich people are traitors…”

“…”

produce.

Consumption.

Which is more important in the economy?

This question is like which is more important, the sun or the moon.

But if some delicate balance is broken, it will inevitably turn into a disaster.

The second half of 1996.

The pace of Japan’s overseas strategic investment has slowed down. At the same time, some Japanese companies have also returned to Japan due to lower costs caused by the depreciation of the yen.

While taking away the foreign exchange investment costs, Japan’s abandonment of large-scale growth in mid-range manufacturing soon began to impact the manufacturing and economies of Asian countries.

The first country to suffer misfortune was Thailand.

Because of the full liberalization of its financial markets and the establishment of an offshore financial center, Thailand has risen from the last of the four little tigers to the first in recent years and is expected to become the second developed country in Asia.

However, success or failure depends on the complete market.

Raw materials without technical content, jewelry, and rough primary processing level have meager export profits.

But on the import side, they are all high-tech products such as televisions, motorcycles, air conditioners, tape recorders, game consoles, and communication equipment.

The rapid expansion of the trade deficit has led to an unprecedented decline in foreign exchange reserves.

The local mid-range manufacturing industry has been hit again by the price cuts of Japanese goods, and cheap labor has been defeated by even cheaper automation.

The stock market crashed and the real estate market collapsed.

Realizing the seriousness of the problem, BOT abandoned everything and held on to the last line of defense of the exchange rate.

Of course.

97 October.

An Asian financial crisis quietly arrived.

The first to collapse was Thailand.