Philippine politics between 1986 and 1991 was punctuated by President Aquino's desperate struggle to survive physically and politically a succession of coup attempts, culminating in a large, bloody, and well-financed attempt in December 1989. This attempt, led by renegade Colonel Gregorio Honasan, involved upwards of 3,000 troops, including elite Scout Rangers and marines, in a coordinated series of attacks on Camp Crame and Camp Aquinaldo, Fort Bonifacio, Cavite Naval Base, Villamor Air Base, and on Malacaņang itself, which was dive-bombed by vintage T-28 aircraft. Although Aquino was not hurt in this raid, the situation appeared desperate, for not only were military commanders around the country waiting to see which side would triumph in Manila, but the people of Manila, who had poured into the streets to protect Aquino in February 1986, stayed home this time. Furthermore, Aquino found it necessary to request United States air support to put down this uprising.

Politically this coup was a disaster for Aquino. Her vice president openly allied himself with the coup plotters and called for her to resign. Even Aquino's staunchest supporters saw her need for United States air support as a devastating sign of weakness. Most damaging of all, when the last rebels finally surrendered, they did so in triumph and with a promise from the government that they would be treated "humanely, justly, and fairly."

A fact-finding commission was appointed to draw lessons from this coup attempt. The commission bluntly advised Aquino to exercise firmer leadership, replace inefficient officials, and retire military officers of dubious loyalty. On December 14, 1989, the Senate granted Aquino emergency powers for six months.

One of the devastating results of this insurrection was that just when the economy had finally seemed to turn around, investors were frightened off, especially since much of the combat took place in the business haven of Makati. Tourism, a major foreign-exchange earner, came to a halt. Business leaders estimated that the mutiny cost the economy US$1.5 billion (see Tourism , ch. 3).

Data as of June 1991