The crisis started in Thailandwith the financial collapse of the Thai baht caused by the decision of the Thai government tofloatthe baht, cutting itspegto theUSD, after exhaustive efforts to support it in the face of a severefinancial overextension that was in partreal estatedriven. At the time, Thailand had acquired a burden of foreign debtthat made the countryeffectivelybankrupteven before the collapse of its currency. As the crisisspread, most of Southeast Asiaand Japansaw slumping currencies, devaluedstock markets and otherassetprices, and a precipitous rise inprivate debt.