Part of the foreign capital was allocated to investment projects in unproductive sectors which were not generating foreign exchange earnings to service the foreign borrowing. Over investment in the non-tradable sector such as property, construction, and real estate consequently generated an asset price bubble and misallocation of economic resources. Moreover, moral hazard related to implicit saving guarantee by the Thai authorities and weak supervision also played a crucial role in investment decisions in the financial system. At the same time, a number of firms deversified from their core business to riskier ones due also party to lack of information and transparency which hindered investors risk assessment.