Have we Learnt anything from the Asian Financial Crisis of 1997?

[Cinvalo]

Source:http://www.corruptionofrealmoney.com/education.php

A friend of mine asked me about a detail analysis of the 1997-98 financial crises from an Austrian School perspective.
Here is what I think:

To summarize it into one sentence, 1997-98 Asian Financial Crises is a credit bubble originated from Japan.

20 years after the WWII, Japan experienced an economic miracle. If you looked back in history, the Nikkei surged from 5000 in the early 70s to 38,000 by 1989. Its economic model of export-led growth was very successful. It had huge reserve assets. By the end of 1980, the land price of Japan had risen to a level price level where the Imperial Garden in Tokyo was said to be more than the State of California! Japan's economic was overheated.

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[Ipv6Ready]

What we have learned is, life goes on.

People who bought before the bubble started - status quo, though life could be better.
People who bought at the top - sux to be them
People who bought at the bottom after the crash - life is ok.

 

[Cinvalo]

Good mentality. You must be in your 30s i guess.
I hope my Dad had that type of mentality when the Euro crisis happened a few years back then.

 

[Ipv6Ready]

Good mentality. You must be in your 30s i guess.
I hope my Dad had that type of mentality when the Euro crisis happened a few years back then.

Nah I'm in my mid 40s....

Graduated Uni in 94 in Sydney with high youth unemployment, got a job in US tech start up, saved a bit got paid 75% of my salary in stock options, survived the Dot Boom crash.

Came back for a job in IT in Sydney...

What I have learned about recessions is that it is an opportunity to double or triple your wealth.

 

[Cinvalo]

Good. Good. By the way, how are the Koalas 2011 Hope they are well :lol: