Transcript of the above video:

As the title of this video suggests, we are discussing the 1997 financial crisis and I think it is relevant to discuss this right now especially in light of what is going on over in the United States. I thought of making this video after reading a recent article from the Bangkok Post, bangkokpost.com, the article is titled: Bank of Thailand reiterates limited impact of global banking problems. Quoting directly: "Thailand's Central Bank on Monday repeated that it expected only a small impact on the country's Financial system and financial markets from the problems at banks in the United States and Europe." Yeah, because quite honestly, Thailand, sort of a once bitten twice shy kind of thing. 

For those who are unaware going back, the Asian financial crisis began in Thailand. It was basically effectively a Thai Baht currency crisis where the Baht lost a great deal of value when the peg broke against the dollar. For example many other currencies, the British, especially the Pound was especially strong against the dollar for quite some time after that. I came in in 2008 so we are looking 10 years after that, there was still, I mean when I look back on that time period, I realize now that Thailand was still kind of in this doldrums coming off the decade that had passed since 1997 and you could see the policy changes between then and now, you just sort of see it. Thailand really was not fully back on her feet after that whole thing until a decade later. You can get into what was going on behind the scenes with all of that stuff; it's pretty fascinating. I have my own opinions on all of that but long story short Thailand especially the banking system learned its lessons very, very well. In my opinion I kind of think the Thai Banking System is one of the better run, if not the best run banking system in the world because of the lessons it learned in 1997. Again, I wasn't here at the time, I have just read about it; I've read about the ramifications; I have read about the policy choices that were made in the aftermath and it's a bit reassuring although I don't wish for people to be complacent in their thinking, but it is a bit reassuring to know that you kind of have "grown-ups" in the room who have dealt with real problems in Banking before when future crises arise because a lot of those folks are still around and quite honestly I think their experiences and their wisdom which was accrued as a result of those circumstances, don't exist necessarily in some of these Western countries that are dealing with this present situation. As a result, I think “the proof is in the pudding” if you will, they are not as capable perhaps in this moment. Now down the road maybe they will get better but they are not as capable as responding to this whereas honestly even going through the COVID situation, I think Banking and Monetary Policy was prudent, very prudent here in Thailand and there's not in my opinion a ton of cause for complaint with respect to that. 

Now that said, is it perfect? No, I'm not saying that but what I am saying is I think one of the ramifications in 1997 for thinking about financial and monetary matters here in Thailand, one of the up-shots of ‘97 was they are very acutely aware of those issues and I think that you have a lot of people that are pretty good at analyzing those issues and making the right calls with respect to what Thailand should do with respect to Thailand’s Banking and Monetary System.