"The reason why Thailand can maintain such a high economic growth rate is because our Thai people are hardworking and hardworking. Our people are full of wisdom, and this is a gift from the Great Buddha!"
"Therefore, our great country will continue to prosper. In the future, it will be even greater and stronger. Therefore, our financial industry and our real estate industry will also develop at a high speed!"
"As financial professionals, we have to understand these things ourselves. We have to believe in them. Otherwise, how can we let your customers trust us? How can we let our customers trust us?"
… …
After listening to a passionate internal training session, Bala Chinnavar returned to his job.
Bala Chinnavar is an employee of Pangu Bank in Thailand.
The name is Pangu Bank. As Thailand mainly exports agriculture, many banks in China are also related to agriculture. Hua Xia's Agricultural Bank is one of the biggest banks in Thailand!
Since 1992, Thailand's exchange rate policy is based on the USD policy. As the USD exchange rate increases, Thailand's Baht exchange rate also increases. This caused Thailand's exports and industries to suffer. Thailand's economic development has shifted from industries to real estate and finance. Within four years, the average price of Thailand's real estate has increased by four times.
Even a fool would be able to tell that there was too much water in this.
Even so, government agencies and even the government were constantly drawing funds from the real estate and financial industry. Since the country's exports were declining in October, they could only rely on the real estate and financial industry to continue the country's development.
Just as Bala Chinnawa was about to continue to dupe the next customer into investing in a fund under his bank, Bala Chinnawa realized that the person in front of him didn't seem to want to invest in a fund.
It seems like the other party wants to get a loan.
"Sir, are you sure you want to mortgage your factory in Bangkok?" Bala Chinnavar asked again.
"Yes," the other party replied.
"Are you going to borrow money to invest in the stock market?" Bala Chinnavar asked with a smile. Now, Thailand's stock market is booming, and there are many rumors of people getting rich overnight through the stock market. So, there are many examples of people mortgaging their assets in exchange for funds to invest in the stock market.
So, when Bala Chinnavar saw that the other party wants to use his company as a mortgage, he asked with a smile.
"More or less!" The other party chuckled. For some reason, Bara Chinnawa always felt that something was wrong, but he didn't know why.
After that, Bala Chinnawa checked the other party's various procedures and documents. After making sure that there were no problems with these things, he signed a one-year loan agreement with the other party.
The other party had used his assets as collateral to get a loan of 12 million Baht, and Pan Gu Bank was charging 6% interest. This was a normal loan transaction, and there were no problems.
But an hour later, a second person came over to apply for a loan. He also used a Thai asset as collateral for a loan of 60 million Baht.
Similarly, after Bala Chinnawa verified that there were no problems, he helped the other party with the loan procedures.
At the end of the day, Bala Chinnawa was surprised to find that he had handled a total of four loans in one day. This was the highest number of loans he had handled in a single day in the past year.
But when Bala Chinnawa remembered that there were more loans in the past, and the stock market was booming now, he didn't think too much about it. He thought all the money was invested in the stock market.
When it was time to knock off, Bala Chinnawa's colleagues were chatting in the breakroom. He found out that his colleagues had also received a large number of loans. The total amount was more than a week's worth of loans.
And these were all short-term loans, the kind that only lasted for a few months.
But no one took this to heart. After all, although this kind of thing was rare, it was not unheard of.
Also, the bank was very happy. If the money was lent out, they will receive profits. If there are no profits, they can use their assets as collateral. No matter what, they will not lose money!
About a month later, Bala Chinnawa, who was handling a loan for a new customer, submitted his application to the Head Office. But the Head Office did not approve his application, which was rare.
Bala Chinnawa had never seen a loan that was not approved. He asked curiously and got to know from the Bank Manager that the Head Office had loaned out all their Baht. After all, the Head Office had a reserve fund, and the Head Office wanted to tighten their loan procedures. To put it simply, the Head Office does not have enough Baht for loans.
"There is a problem!" The Bank Manager scratched his head and clapped his hands. "I understand now!"
"What do you understand now?" Bala Chinnawa asked.
"A large sum of money is going to enter the stock market, and the stock market will continue to rise. I will go and buy shares now!" After the president finished speaking, he rushed off to sell the stocks. Bala Chinnawa felt that it was very reasonable. Don't be in a hurry. He invested all his funds into the stock market, looking forward to the day when he would become rich overnight.
These people did not know that a few days ago, a foundation had borrowed more than 100 billion Baht from Thailand's Central Bank by using more local assets as collateral.
What's crazier is some people did not even use anything as collateral. They only use their foundation's name and higher short-term rates to borrow a large amount of Thai Baht from the banks. Many banks' Thai Baht pools were emptied by these people.
Some banks could not resist the temptation of short-term profits and used their own USD to buy Baht from the market. This caused the Baht's rates to rise again.
Everything is going well, and it seems another financial boom is coming.
But it's not a financial boom. It's Soros and his Quantum Fund.
June 1997. On another morning in Thailand, an order of 10 million Baht was placed on the Thai currency exchange.
This order was bought by someone with 400,000 USD. But when this order was bought, another order for 10 million Baht was placed on the market.
Of course, all of this seemed very normal. No one would have guessed that a huge storm that was about to engulf the entire Southeast Asia had arrived.
In history, Thailand's stock market crash started in February 1997. In this world, because of Boss Jia, this financial war was delayed until June.
But what was meant to come would come.
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