1997, S Korea banking system was on the verge of collaspe, as result of violatile banking practices that had destabled the financial system threating the 11th largest economy of the world and created the possibility of financially crippling long term companies like Hyundia, Samsung, and Daewoo. At the time the IMF began analyzing S Korea's financial condition, S Korea bank reserves stood at $24 billion. IMF's, Neiss had no idea how close the S Korean banks were to default and when Neiss arrived in S. Korea the reserves had already fallen to $9 billion and dropping $1 billion a day. Foreign banks were demanding payment on loans come due and the practice of routinely extending payments month after month was canceled causing a massive amount of money due. The short term debt to foreigner was $20 billion. Foreigners on the currency exchange were dumping the won for the dollar and investors were executing a massive selloff of Korean stocks and bonds. When Neiss arrive S Korea was within a week of default. If S Korea defaulted, the default could cause a long and crippling cutoff of loans and neighboring Asian countries might also fall into default and investment confidence could be shattered globally and the world fall into a global recession. The S Korea economic collaspe affected the US economy; in 1998, the bond market ceased to function as a provider of capital to the world; the fed was forced into sharp cuts in the interest rate, but the fed could not tame the savage beast of the global market. The global market beast was enormous. Foreign investment in the selling and buying of stocks and bonds and other securities had reached $17.3 trillion by 1997.

Neiss envisioned three responses to the crisis: 1. acquire a short term loan from Japan 2) gain permission to pay foreign loans in bonds rather than cash 3) stem the panic by showing the market that S Korea banks had plenty of cash. The IMF bailout infused $55 billion and $21 billion from the IMF. S Korea promised to cut budget amounts, raise interest rates, shutdown ailing financial institutions and close the doors, eliminate government direct bank loans, and allow greater freedom for foreign investors to buy stocks and bonds. The IMF bailout followed by a crash in the currency and economy of S. Korea. Financial credibility damage had occurred. IMF bailouts pattern of crashes after loan approval occurred with Thailand ($17 billion loan), Indonesia ($33 billion loan), Russia (1998 - $22 billion loan), and Brazil ($44 billion bailout loan). IMF bailout meant higher interest rates cooling fast growing economies. When a country fails to meet the target goals of the IMF, the IMF blames the government of the country for failing to meet the conditions of the loan. This tactic imposes censurorship and political influence entangling the IMF with the internal policies of the countries political machinery. 1999-2000, the IMF pronounced the Asia financial crisis over.

In fast growing Asian countries, hot money had poured inot these economies. Hot money could be liquidated with a push of a computer button by commerical banks and brokers. Hot money destabilized the S Korean financial systems and increased the violatility in the system.

The criticism of the IMF are: it lacks expertise in banking issues, it closes banks and does not consider whether other banks can cover; it can not create money like the fed. In 2001, IMF war chest totaling $137 billion. IMF limitations to financial assets make it vulnerable to rescuing failsafe countries that could trigger global financial collaspe. Once an IMF bailout is installed, the role of the IMF is too become the financial planner of the country forcing the country to reduce spending and increase income revenue.