| Outside South America, the country most haunted by the ghost of the Mexican crash is Thailand. All the signs of success coming apart at the seams are there, including a large current account deficit, a build up of short-term debt, an overvalued currency, a moribund stock market, overextended banks, a property slump and inept government. As if this wasn't enough, journalists, analysts and academics have been busy penning articles pointing out the dangers Thailand faces. Financial meetings in London and New York have been abuzz with Thailand horror stories and many bankers with Thailand risk have flown to Bangkok to assess the situation. If Thailand was indeed on the brink of collapse, such scaremongering should have sent it over the edge. But the country has held firm and, while the problems are by no means resolved, the country's technocrats are starting to breathe a little easier. Thailand's civil service is noted for its cool steering of the economy during periodic crises such as military coups, political upheavals and riots. Such domestic difficulties are commonplace for an experienced Thai technocrat. But there was less confidence about whether they could prevent substantial capital flight out of liberalizing financial markets. |