Effects to Thailand's economy as China falters...

[Saddic]

Couldn't find an exact group to post this, so trying the General Topics... move is there is a better one...

 

Saw this today...

 

I feel there will be a ripple effect through out all of Asia from the fallout of this and other economic falterings (tech crackdown, etc) out of China...

 

The obvious is the free-flow of monies out of china to invest in both public and private will dry up...  Are we headed to a crisis similar to the currency crisis from a bygone era?  Don't remember Thailand handling that crisis very well...

 

Your thoughts?

 

https://www.cnbc.com/2021/09/17/china-developer-evergrande-debt-crisis-bond-default-and-investor-risks.html

 

[Will B Good]

This could certainly have a huge impact on the condo market.

 

Once Winnie decides to crack down, he cracks down big time.

[topt]

7 hours ago, Saddic said:

Are we headed to a crisis similar to the currency crisis from a bygone era? 

No. 

 

7 hours ago, Saddic said:

I feel there will be a ripple effect through out all of Asia from the fallout of this and other economic falterings (tech crackdown, etc) out of China...

Why? Even the article does not really suggest that and not sure why this event or tech crackdown as you call it will stop money flows. Other things may hinder it.

[wombat]

14 hours ago, topt said:

No. 

 

 

Chinese Govt will not let it fail.

[soalbundy]

55 minutes ago, wombat said:

Chinese Govt will not let it fail.

If you are talking about Evergrand they are apparently letting it fail which is a big surprise to all the major investors who are hoping for a backroom deal.

[Will B Good]

James Laurenceson, director of the Australia-China Relations Institute, said Evergrande could be forced into a fire sale but cautioned that the sheer size of the business meant that the situation might not be as dire as some imagined.

 

 

If there is a fire sale, many who were considering purchasing Bangkok condos will be thinking again, adding to Thailands woes.

[placnx]

7 hours ago, soalbundy said:

If you are talking about Evergrand they are apparently letting it fail which is a big surprise to all the major investors who are hoping for a backroom deal.

On al Jazeera today, it was said that China Evergrande's debts are $300bn. That must include liabilities for pre-sold apartments. Anyway, because so many ordinary people put their savings in these unfinished projects, there has to be some solution for that part of the business. Then there is the problem of what to do with their 200,000 employees when projects are done.

[3STTW]

I also watched the Al Jazz report later this evening, looks like it's curtains for Evergrande. I think the CCP will let this happen to curtail the ridiculous property speculation which is fueling the massive wealth disparity in China (you thought US was bad!).

 

Problem is, the CCP now has to deal with the banking debt problem, so let's see how that pans out. A lot of people foresee a huge monetary shock throughout the global financial system - I tend to agree - but this isn't news and the markets seem to have been gearing up for a massive reset.

 

As an investor, I'm getting ready to cash out, if there is going to be a big reset, I want ready money to be back in the market while the fires are still burning.

 

Next week will be interesting.