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Thailand’s struggle with high household debt and political promises


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1 minute ago, digger70 said:

Social media has got nothing to do with common sense and Business management That's what lacking here ,one can't go in debit 10 Mill and blame someone else .

I give up with the sense of entitlement these days. 

 

Every god darn untoward event is expected to be personally absolved and paid for by others. I don't think so. 

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6 hours ago, racket said:

Inflation have made things worse, and having the government to subsidize loans and hand out money to ordinary people, is the root of all debt problems to start with. Government need to step out of the way, and let the market handle it. Those who have lent out money must take responsibility if they are not getting paid back. 

Indeed. 

We tend to look upon the potential loaner as the victim, yet their personal and financial responsibility should be under scrutiny - as they shouldn't be taking out loans to begin with. No foresight whatsoever. 

 

The financial institutions are just as guilty, even fraudulent.....with their extremely sketchy policies of loaning here and there to most anyone that walks through the door. A lose-lose situation anyway one looks at it. 

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This is a no content article that has been trolling forum members in Thailand for decades. Thais are in debt. The day of reckoning is coming. Year after year something like this comes up and things stay the same. Still the record number of luxury cars on the roads. Properties still being sold at stupid prices. People in Thailand still surviving. Restaurants are full. 

 

Thais are crafty. Farang struggles with 800,000 baht in the bank account.

 

Lol

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1 hour ago, scottiejohn said:

Do you ever answer questions or just post whatever rubbish suits your agenda?

What you said was silly and didn't merit a response. It's not _literally_ money for nothing. It's the thinking you can get rich by spending 80 baht on a lotto ticket. That's why playing lotto is bad because it makes people think they can get rich by proving nothing of value. 

 

You slipped in buying stocks into a list of equally bad gambling and muddied the waters so I didn't reply to that either.

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16 minutes ago, NorthernRyland said:

What you said was silly and didn't merit a response

So what is the above, is that not a response?

Yet again no answer to any of my questions apart from more totally unfounded assumptions!

We all all know what it is to "assume" something!  It means It  you have no actual answer, just verbiage!

Edited by scottiejohn
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"tax rebate to first-time car buyers, which led the household debt percentage to skyrocket from 60.3% at the beginning of 2011 to 71.8% by the end of 2012. That program ultimately cost the government an estimated 91 billion baht." 

The correct wording would read, that the government had THB 91 billion less income; it did not cost them anything. And, like in real life, you have to ensure not to spend more than you earn. 

In clear language I see three brand-new B777 for Thai Airways, a bankrupt company which declared a profit of THB 10 billion while its 100% affiliate daughter Thai Smile clocked THB 20 billion loss and will be quietly disappearing from the skies of Thailand. 

All the while, the boys in uniform have sheer endless cash to splash on submarines, while forgetting the engines; I am sure that similar shopping lists are lying around with the air force and the army. 

The official Thailand has not an income but a spending problem - but that's what applies to the majority of its citizen as well. 

If only fully paid cars would circulate, if only fully paid up credit cards would be used and everything else would be downsized to level "paid", the problem would have never occurred but, yes, I know, it is not in the interest of industry, banking nor the state as only owned houses and cars (never mind if paid or not) generate excise, taxes and duties ???? 

 

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15 hours ago, connda said:

Consider that Thai banks offer such low rates, I'm really surprised that there hasn't been more capital flight as money move to were it receive a higher interest.  Then the BOT ends up in a liquidity crisis.  All I know is that eventually this ends badly for those of us who are net savers/investors as we'll all be handed the bill.  And, for those who are on these long-term visa schemes where your dropping large sums of money into low-interest Thai bonds?  Look out.

There have already been some capital outflows, but with the difference becoming wider, the risk of more is growing stronger by the Day.

Capital outflows are only one edge to a double edges sword.

With Thai low Interest returns now, there is surely going to be a reduction in FDI.

Both of these effects will drag on growth for sure as well as competitiveness in the World Market Place for Exports, which are already showing some sharp declines.

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My boss once said to me: "I drive an expensive sports car, I live in a big villa, I go on expensive holidays several times a year. etc. Yet, I don't have a penny in my pocket that I can call my own.
When you want to have a good business, loan money as much as you can and enjoy your life. When the money source ends, close your company and start another one".

Most of the super rich people are living under this rule (Jeff Bezos, Elon Musk, etc.)

 

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22 hours ago, racket said:

What if her business requires a car? Her children also need to attend school. The fact of the matter is, social media has played a huge part of this problem. Everyone wants to show off stuff they can't afford, to impress others who don't seem to care anyways. 

Thais have been obsessed with apperances since long before socal media.

My first flat in Thailand was a samll top floor 2 bedroom with huge balcony in a lower budget building with a parking lot full bmws and benzes. With the exception of one other 2 bed across from me occupied by a korean guy, every other flat in the building was a hong dio occupied by a thai at less than half the cost. 

They all went to the office every day dressed in designer clothes.      

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