Investment quality was weakening, suggesting the prospect of a significant
downturn in several sectors, but not an complete economic collapse. These problems clearly
contributed to the reversal in creditor perceptions and to the onset of the crisis. However, on
balance, it is difficult to make the case that these problems were so severe as to warrant complete
collapse of the currencies in the region, a total breakdown of banking systems, and deep
recessions. Asia=s weaknesses required modest adjustments, but were not severe enough to
inevitably lead to a full-blown financial crisis. Thus, there is more to the story.