Part 8/9:
When the economic crisis hit in 1997, asset prices collapsed along with the broader economy, resulting in widespread bankruptcies and mortgage defaults. The introduction of an IMF bailout and subsequent austerity measures led to profound social and economic repercussions, resulting in job losses and the migration of residents back to rural areas.
Lessons and Recovery
The unraveling of the housing bubble in Bangkok highlighted the dangers associated with rapid deregulation in a developing market. A lesson learned was the need for robust financial oversight and the importance of prudent lending practices.