Asia’s crisis was caused by a classic fear cycle, and the only move that might have arrested it was the same one that had rescued Mexico’s currency during the so-called Tequila Crisis of 1994: a quick, decisive loan—proof to the market that the U.S. Treasury would simply not let Mexico fail.9 No such timely move was forthcoming for Asia. In fact, as soon as the crisis hit, a surprising array of heavy hitters from the financial establishment stepped forward with a unified message: Don’t help Asia.
