Seven Times When Financial Derivatives Teetered the World's Economy on the Brink of Ruin

The Asian Financial Crisis, 1997

Fast forward a decade to 1997, when the Asian Financial Crisis shook the world economy. This crisis was triggered by speculative attacks on currencies pegged to the U.S. dollar, using financial derivatives. Hedge funds, and other speculators, used these instruments to bet against these currencies, leading to devaluations and economic turmoil across Asia. This event highlighted how financial derivatives could be used to exploit weaknesses in economic systems, with devastating consequences.