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...example, the government bought bad loans from banks and also injected government money into their balance sheets. Several banks were nationalized. Governments across the region also shut down financial institutions deemed too weak to survive or warrant a government bailout. In August 1997 Thailand closed 42 finance companies. Indonesia closed 16 banks in October 1997, and Korea closed 14 merchant banks that December, according to Merrill Lynch. This separating the wheat from the chaff helped to speed economic recovery because it made clear which institutions were solid and could be trusted...

Author: /time Magazine | Title: Lessons From Asia's Last Meltdown: Act Fast | 10/10/2008 | See Source »

...Obama looks will not, of course, determine how he would govern if elected. Because he spent part of his childhood in Indonesia, and because he appears international in outlook, some Asians have high hopes for an Obama presidency. The thoughtful Malaysian commentator Karim Raslan warns, however, that Obama could prove disappointing to even those Asians who like him. "There's this idea that Obama will be a transformational figure, a leader of the world," says Karim. "But he's a Democrat, and Democrats have traditionally pushed protectionism and human rights, issues uncomfortable for Asia. Obama's key constituency...

Author: /time Magazine | Title: Race to Judgment | 10/8/2008 | See Source »

...Asian stocks that began on Monday. In Japan, the world's second-largest economy, the benchmark Nikkei index plummeted 9.4%, its biggest one-day drop since the global stock market crash of October 1987. Hong Kong's benchmark Hang Seng index fell 8.2%, while Seoul's Kospi dropped 5.8%. Indonesia shut down its stock market after shares plunged more than 10%. It is unclear when trading will resume. "We need to watch further before we can open," Erry Firmansyah, the exchange's president, told reporters...

Author: /time Magazine | Title: US-Europe Rate Cut Comes Too Late for Asia | 10/8/2008 | See Source »

...lack of enthusiasm was not reflected in the auction rooms, which were well attended over the weekend with collectors from throughout the region, including Singapore, China and Indonesia. But Zhao Wuji's "7 Aout 2000" sold for $543,156 - over $44,000 short of Sotheby's low-end estimate of $587,500 - and several pieces, including paintings by star contemporary Chinese artists Zhang Xiaogang and Yue Minjun, went unsold at the modern and contemporary Asian art sale on Oct. 4. Many say the unimpressive results were a combination of already overinflated price estimates and the dismal economy. "Particularly with...

Author: /time Magazine | Title: Will Crashing Markets Bring Chinese Art Back Down to Earth? | 10/8/2008 | See Source »

...specter of global recession helped spark Monday's plunge in Asian stocks as Hong Kong's main index fell 5%, Japan's 4.3% and Indonesia's 10%. Markets ended mixed on Tuesday: Japan's Nikkei index dropped 3% while Korea's Kospi and Singapore's Straits Times index both rose slightly. But few were heartened by the feeble bounces...

Author: /time Magazine | Title: US Financial Quake Rocks Asia | 10/7/2008 | See Source »

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