Asian financial crisis

After nearly thirty years of great economic growth many Asian countries are in recession due to many bad business decisions. The Asian financial crisis caused the value of Asian currency fall 50-60 percent, stock markets to decline by 40 percent, property values to drop, and banks to close. The Asian financial crisis began in mid 1997 because of currency devaluation, bad banking practices, high foreign debt, and corruption; has lead to a decline in the currency and …

…investment and ownership. Many people are worried that this is a temporary solution and that Asia will fall into a worse economic crisis. If the Asian economies fall even further, in a desire to raise cash, they might sell the hundreds of billion dollars in U.S. treasuries they now own. This along with an increased trade deficit, coming from more importing and less exporting will lead to higher interest rates and an American recession.