An outstanding lesson

The closure of all but two of 58 finance companies has been a painful experience, one that will be felt for quite some time. In the near term, the victims will be many, not least those whose money is tied up with the 56, and the thousands of people thrown out of work because of the inadequacies of profligate bosses blinded by huge sums of money.

In the medium to long term, however, the decisive action announced yesterday will pay off because a stark signal has been sent to irresponsible executives, slumbering regulators, predatory politicians and an apathetic public. The closure announcement, which amounts to a sluicing out of our financial stables, has also been the first tangible step for far too long in the quest to regain confidence. It goes without saying that the economy needs the confidence of investors here and abroad, but perhaps more importantly, the closure shows a departure from the tradition of doing nothing and hoping problems will go away.

It was possibly the misguided belief that things just might get better that was at the heart of the crisis. Many of the employees of the casualty companies believed, like their bosses, that the good times were so good that nothing could possibly go wrong. There is every likelihood the regulators shared that view as they watched with glee as all the money rolled in and all those buildings went up.

As far as lessons go, this one has been quite outstanding, and it is important that it is taken to heart. Could it be, to borrow from Oscar Wilde, that Thailand knew the price of everything and the value of nothing? Our present troubles offer the prospect of a fresh start, particularly with the stench of money politics being slowly cleared on the breeze of political reform. The mistakes are plain to see, and it is up to us and us alone if we are not to doom ourselves to repeat them.

-- The Bangkok Post