Bangkok--11 Aug--Moody's Asia Pacific Market Forces: The Subprime Shock, One Year On By Tine Olsen, Economist, Moody’s Economy.com (**Please see editor's note) A year after the subprime shock, the global economy is still suffering, and the end of the credit crisis is nowhere in sight. Asian economies have been affected both directly, through their holdings of U.S. mortgage-backed securities, and indirectly, via changes in investment and consumption patterns. China, the largest international holder of subprime securities, has been challenged directly. Other countries' trade and investment are being squeezed. A year ago this week, financial markets around the world began to quake as rising defaults by U.S. subprime borrowers triggered a global shock that still reverberates. The bankruptcy filings and emergency central bank interventions of mid-August 2007 came as major blows. Still, at the time, few expected the subprime debacle to herald a global economic downturn. A year on, and we know differently. The subprime crisis continues to have widespread ramifications, with financial markets across the world still in turmoil and slowing economic activity in most parts of the globe, including the Asia-Pacific region. Tine Olsen is an Economist in the Moody's Economy.com Sydney office. She holds degrees from Monash University in Melbourne, Australia and the University of Copenhagen in Denmark. She has worked for the International Monetary Fund, the Copenhagen Stock Exchange, and the Danish Ministry of Foreign Affairs. Please see attached the full commentary for your reference. Please reply by email with your contact information to obtain journalist complimentary access to Dismal Scientist of Moody's Economy.com www.economy.com Hector Lim AVP/Communications Strategist Moody's Investors Service Level 10, 1 O'Connell St. Sydney NSW 2000, Australia Tel: +612 9270 8141 E-mail: [email protected] [North Asia & India] Eleanor Sheung AVP/Communications Strategist Moody's Asia Pacific Limited Rm 2510, 25/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong. Tel: (852) 2916-1224 Email: [email protected]