On 15 January 1998, Suharto signed a deal with the IMF for another bailout package full of unpopular austerity measures.
The body language of the then IMF Managing Director Michel Camdessus says it all.
After this "for your own good" treatment from IMF, most countries in Asia have beefed up their reserves so they don't have to be talked down to ever again.
With the recent "bailout" of Cyprus, it's good to be reminded of the painful costs of a bailout.
It goes for sovereign states as for individuals.
did you miss her?
ReplyDeletehttp://www.youtube.com/watch?v=ug2s4-3nSnk
one of my favorate song.
the only singer that come close to her is this one, a true legend.
Deletehttp://www.youtube.com/watch?v=kNvKtVXadFE
coconut,
DeleteHow can I not miss her? In all the Chinatowns around the world that I've visited, her voice is the unifying bond amongst the Chinese diaspora.
Makes me feel like "home" when I hear her songs in a restaurant overseas.
Dear SMOL
ReplyDeleteShortly after that, Suharto was overthrown. :-P
Bailouts can result in regime change.
Be well and prosper.
Panzer,
DeleteAnd that's part of the "painful costs" I alluded to.
In 97 and now in Europe, those being bailed-out will blame their "benefactors" for not doing more, uncaring, heartless.
While those giving "aid" will start telling those receiving aid how to live their lives.
I cringe whenever I read those that are doing "well" telling others "if you cannot afford the deposit, you should not be THINKING of buying in the first place".
Good intentions but feels like that idiot IMF guy in the pic above.