If we ever want to document the dates or years of recent economic crises, we may have to write faster now as the crisis is getting more frequent and more devastating. Just for my own records and amusement, I have started the counting dated back to 1997. We will see how fast can I cope with the up coming ones:
1997-98: South East Asia and part of East Asia (in fact, only South Korea) suffered enduring years of financial crisis where banks collapsed and financial system breaks down. Interestingly, regimes also collapsing; Soeharto stepped down and Malaysia’s Deputy PM was fired (allegedly for moral misconduct and partly for his opposition to currency control imposed by the PM).
2008-09: US and most of Europe suffered from the largest financial crisis since Great Depression. Few big names in Wall Street and Lombard’s called bankruptcy; AIG, Lehman Brothers.
2011: Middle East. All politically driven and nicely called as Arab Spring; but since the region is home to 80% of oil reserve in the world, the impact is worldwide and economical.
Europe. Default on Greece government bonds has dragged the whole Eurozone, and in fact Europe, in tatters.
2012: as Eurozone is suffering with more defaults and rise in unemployment. The latest blow is a downgrade of most EU members’ credit ratings by S&P, notably dismantling of AAA status from France and Austria.
Another possible crisis is due to oil. The tension in the Middle East has escalated in January as the US pressed forward with more serious economic sanctions on Iran. But Iran may be fighting back: oil exports embargo may be responded with closure of Hormuz to cause massive interruption in the out flows of GCC’s oil exports to Asia Pacific, or war.
Either way, the global economy looks un-promising and we may have to prepare with a possible double crises in 2012.***
Originally published on luqyantamanni.wordpress.com, January 17, 2012: view original.
