ABSTRACT
This chapter outlines the urban dimensions of the 1997 economic crisis in the banking industry in Bangkok. It sketches the long-standing mercantile character of the city and the emergence of its speculative "bubble" economy. By the 1990s, when the Thai economy had established itself as the most lucrative emergent market worldwide, the country was compelled to open up to more international investments. Foreign capital rushed in, not so much as direct investment in business as through rapidly moving financial circuits (for example, portfolio funds). Whether from the Eurodollar market or Japanese and US sources, this influx made inexpensive money available to local corporations. The result was hyper-investment, a speculative bubble of short-term loans whose worth far outstripped the likely promise of profits. The dominant public image of Thai identity forged during the boom years centered on Bangkok, and was firmly affixed to the notion of Thailand's ascending position on the international stage.
