Still, the crisis could be manageable. The level of capital in most Thai banks is significantly higher than that of Japanese banks when they got embroiled in Japan s property mess, says John Hobson of Morgan Stanley Asia in Hong Kong. The systemic risk is relatively limited. In time, the property overhang might disappear. As countries go through their first property cycle, there is propensity for huge oversupply and overlending, says Michael Green of Salomon Brothers, who sees a glut also building up in Malaysia, Indonesia and the Philippines.
Developers don t have first-hand experience of a slump.
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