Comparison of the Great Depression and the Asian Economic Crisis

The trigger of the economic crisis in the 1930s is the crash in New York stock market. A few years ago before the crisis, New York stocks was rising continuously , and Dow Jones stock index rocketed up from 191 points in early 1928 to 381 points in 1929 , doubling within two years. New York markets suddenly crashed on October 24, 1929, stock prices plummeted one after another, the speed is so faster than an automatic recorder can keep track of ; On that day, 11 stock speculation investment veterans committed suicide, and the day is known as Black Thursday in financial history . The next day, to bolster confidence in the face of uncertainty, President Hoover claimed that United States’ basic enterprises, namely the production and distribution of goods, are underpinned by a sound and prosperous basis. However, on October 28th, another Black Monday came, the stock prices plummeted 50 points in one day. On the following week, stock value evaporated 10 billion dollars. Then the affects quickly spread around to the world stock markets, and brought about the world economic crisis. Given this crisis has a long duration, affected an extensive area, and caused great damage, it is also known as the great depression and the Great Panic. In March 1997, several large finance companies in Thailand emerged low quality assets and insufficient liquidity problems. Then, the western hedge funds with a large number of Southeast Asian currencies in hand hedge funds, headed by George Soros aggressively sold the baht, the value of Thai baht felling all the way. The Bank of Thailand, which only hold US $30 billion foreign exchange reserves, was incompetent to maintain the fixed exchange rate of baht, and on July 2nd, 1997, the Thai Government declared to give up the fixed exchange rate system and implement floating exchange rates, which immediately led to a financial crisis in Southeast Asia. This financial crisis generally can be divided into three phases. The first stage: on