A second and in some ways closely related view was that Asia=s collapse was the
inevitable result of overinvestment resulting from a widespread belief among creditors that they
would be bailed out if their investments went bad. Two different moral hazard arguments have
been pushed forward, although they are rarely carefully distinguished. The first suggests the
IMF/US Treasury bailout of Mexico in 1995 reassured Asian investors that they too would be
rescued if things got out of control. According to this viewpoint, creditors recognized all the
growing problems in Asia, and believed hat at some point these economies would collapse, just ashad happened in Mexico. The only question was when, and so creditors were simply using shortterm
lines of credit as a means of betting on the timing of the end of the Asian bubble