Household debt in Thailand soars to 86.9% of GDP, dampening consumer spending

[h90]

16 minutes ago, MrMojoRisin said:

From your link:

 

Thaksin promised to create a debt management company to remove bad assets from the country's banks and eliminate significant amounts of private and public sector corporate debt.

 

and

 

Another economic crisis driven by over-extended consumers and unproductive investment is improbable over the next several years

 

Also, there is no mention of off book loanshark debt issues that plague(d) the country.

 

Wrong? I think not.

He allowed the farmer borrowing money they can't pay back and guarantee with their land...and that without educating them....So they signed....bought consumer goods and were in debt...could not pay back, many lost everything others suicide. Of course it was the farmer themself who acted stupid but it was Thaksin who made it possible 

[MrMojoRisin]

1 minute ago, h90 said:

He allowed the farmer borrowing money they can't pay back and guarantee with their land...and that without educating them....So they signed....bought consumer goods and were in debt...could not pay back, many lost everything others suicide. Of course it was the farmer themself who acted stupid but it was Thaksin who made it possible 

This is just made up nonsense. Is anything you post actually factual? Care to post any supporting evidence of your false claims?

 

BTW - the Thai suicide rate dropped under Thaksin and only began rising again during Prayuth’s incompetent tyrannical reign.

[zzaa09]

5 minutes ago, h90 said:

He allowed the farmer borrowing money they can't pay back and guarantee with their land...and that without educating them....So they signed....bought consumer goods and were in debt...could not pay back, many lost everything others suicide. Of course it was the farmer themself who acted stupid but it was Thaksin who made it possible 

Some have forgotten how the mafia-like BAAC blossomed under Thaksin and his scoundrel clan. 

A total disaster for the working farmers, who were stable before the almost forced upon incentives. 

[jacko45k]

15 hours ago, itsari said:

Interest rates on savings are 1 percent to 1,5 percent . 

Why is it that Vietnam and Cambodia have over 6 percent on offer for savings accounts .

I think the debt problem in Thailand would bring the banks down if they offered the same interest rates as there neighbouring countries . 

Higher rates usually mean higher risk. 

It might indicate desperation but I will not be sending money to either of those countries... Thailand I do.

[h90]

36 minutes ago, zzaa09 said:

Some have forgotten how the mafia-like BAAC blossomed under Thaksin and his scoundrel clan. 

A total disaster for the working farmers, who were stable before the almost forced upon incentives. 

And not forget the rice scam (Yingluck)...lots of farmers killed themself in this one. It was an attempt to cause a worldwide shortage so the prices increase. Instead other countries just sold more and the Thai rice got rotten.

[itsari]

10 minutes ago, jacko45k said:

Higher rates usually mean higher risk. 

It might indicate desperation but I will not be sending money to either of those countries... Thailand I do.

I have to agree with your comment on risk .

However I do not think Thailand is 6 times safer than Vietnam or Cambodia when comparing the difference in the interest rate .

[jacko45k]

Just now, itsari said:

I have to agree with your comment on risk .

However I do not think Thailand is 6 times safer than Vietnam or Cambodia when comparing the difference in the interest rate .

I am not sure it is to be expected a linear conversion between risk and interest return......Thailand's banking system probably differs and do they carry a security guarantee of  mil baht equivalent in Vietnam and Cambodia? I might feel safer depositing there if I lived there though. 

[lordgrinz]

5 minutes ago, jacko45k said:

I am not sure it is to be expected a linear conversion between risk and interest return......Thailand's banking system probably differs and do they carry a security guarantee of  mil baht equivalent in Vietnam and Cambodia? I might feel safer depositing there if I lived there though. 

That used to be higher here (5 Million Baht), now its so low we have to be careful what we send over.

[jacko45k]

Just now, lordgrinz said:

That used to be higher here (5 Million Baht), now its so low we have to be careful what we send over.

Yes it did.....  spread it around and between banks not accounts.

[Pink Mist]

Off topic posts have been removed.

 

The OP is on Thailand household Debt not any other country. This is not about Government debt either.

 

Stay on Topic. 

[MrMojoRisin]

1 hour ago, zzaa09 said:

Some have forgotten how the mafia-like BAAC blossomed under Thaksin and his scoundrel clan. 

A total disaster for the working farmers, who were stable before the almost forced upon incentives. 

The obvious question, if what you say is true (doubtful), is why, for 20 years, have the working farmers resoundingly supported and voted for Thaksin?

[MrMojoRisin]

54 minutes ago, h90 said:

And not forget the rice scam (Yingluck)...lots of farmers killed themself in this one. It was an attempt to cause a worldwide shortage so the prices increase. Instead other countries just sold more and the Thai rice got rotten.

More debunked nonsense. Is there any junta propaganda you haven’t swallowed hook, line and sinker?

[lordgrinz]

37 minutes ago, jacko45k said:

Yes it did.....  spread it around and between banks not accounts.

I won't send much more than 1 Million over anymore, but I see a lot of Thai's with higher amounts stuck in one account, not good. 

[lordgrinz]

If they added in household debt owed to loansharks, that percentage would be off the charts. 

[jacko45k]

10 minutes ago, lordgrinz said:

I won't send much more than 1 Million over anymore, but I see a lot of Thai's with higher amounts stuck in one account, not good. 

I see Wise will limit you to that (per transaction) and less to SCB! 

[h90]

21 minutes ago, MrMojoRisin said:

More debunked nonsense. Is there any junta propaganda you haven’t swallowed hook, line and sinker?

junta propaganda????

I was in Thailand at that time....even flooded...that Yingluck caused the floods is disputed....But for the rice scam I didn't even know that someone dispute that fact. They were proud of their plans and openly promoted it.....There were life videos from the fake warehouses. Beside some twitter bubble and maybe some journalists who were never outside Bangkok no one debunks that.

[MrMojoRisin]

20 minutes ago, h90 said:

junta propaganda????

I was in Thailand at that time....even flooded...that Yingluck caused the floods is disputed....But for the rice scam I didn't even know that someone dispute that fact. They were proud of their plans and openly promoted it.....There were life videos from the fake warehouses. Beside some twitter bubble and maybe some journalists who were never outside Bangkok no one debunks that.

It’s disputed if Yingluck can control the weather?

[VinnieK]

Knowing the devil-may-care Thai mentality,I smell trouble for the banks 

Only a fool would make unsecured loans to a Thai.

 

[Eric Loh]

24 minutes ago, h90 said:

junta propaganda????

I was in Thailand at that time....even flooded...that Yingluck caused the floods is disputed....But for the rice scam I didn't even know that someone dispute that fact. They were proud of their plans and openly promoted it.....There were life videos from the fake warehouses. Beside some twitter bubble and maybe some journalists who were never outside Bangkok no one debunks that.

Yingluck was charged for breach of statutory duty & malfeasance (junta court) not for scam. Warehouse corruption has nothing to do with Yingluck but the rice surveyors or the warehouse people themselves. if breach of statutory duty & malfeasance was the charge, then surely Prayut should also by charged for the massive corruption in the medical glove procurement scandal which caused losses at over 100 M Baht and the procurement of ATKs. What about the failures in handling the Covid-19 pandemic resulting in widespread closure of many businesses and an economic meltdown. If you in Thailand long, you should know the highly skewed court decisions against democratic political opponents. 

[MrMojoRisin]

36 minutes ago, h90 said:

junta propaganda????

I was in Thailand at that time....even flooded...that Yingluck caused the floods is disputed....But for the rice scam I didn't even know that someone dispute that fact. They were proud of their plans and openly promoted it.....There were life videos from the fake warehouses. Beside some twitter bubble and maybe some journalists who were never outside Bangkok no one debunks that.

That there was an outbreak of rice farmer suicides because of late payments from the rice scheme is demonstrably false junta propaganda.

BTW - What does it say about the junta supporters that they actively sought to further delay payments, in spite of all their suicide talk, in order to help their stated goal of a military coup?

 

The rice farmers aren’t silly, that’s why they vote red.

[sqwakvfr]

Household or consumer debt is a global problem.  At least in the US many have the bankruptcy option.  I have several relatives who have exercised this option. Of course once the debts are discharged they go back to spending and borrowing again.

Edited June 22, 2023 by sqwakvfr

[h90]

25 minutes ago, MrMojoRisin said:

That there was an outbreak of rice farmer suicides because of late payments from the rice scheme is demonstrably false junta propaganda.

BTW - What does it say about the junta supporters that they actively sought to further delay payments, in spite of all their suicide talk, in order to help their stated goal of a military coup?

 

The rice farmers aren’t silly, that’s why they vote red.

They may have inflated the amount of suicides, but there were proofed cases with letters.....Maybe not that many, I don't know but there were cases.

And with the Junta...Yes I agree....They were not really helpful By no means I want to tell that the Junta did a good job.....They did nothing. 

[h90]

36 minutes ago, Eric Loh said:

Yingluck was charged for breach of statutory duty & malfeasance (junta court) not for scam. Warehouse corruption has nothing to do with Yingluck but the rice surveyors or the warehouse people themselves. if breach of statutory duty & malfeasance was the charge, then surely Prayut should also by charged for the massive corruption in the medical glove procurement scandal which caused losses at over 100 M Baht and the procurement of ATKs. What about the failures in handling the Covid-19 pandemic resulting in widespread closure of many businesses and an economic meltdown. If you in Thailand long, you should know the highly skewed court decisions against democratic political opponents. 

You are right, she did not profit from it. The big corruption was from the warehouses, mills, reseller etc.. But the system came from trying to play with the global prices and additionally bad management. She did not steal money at the rice scam. Others did. And a lot rice got rotten which is only wasting money.

I complete agree on the mismanagement of Covid-19...extreme bad for small business and economic and on top of it huge costs and debts.

A special place in my list of the most stupid things I have ever seen: Announce that you need to be vaccinated to enter Thailand, starting with the next day 8 o'clock (if I remember right) and than stop with it at 10 AM as it is nonsense.....It was Anutin but on Prayuts watch....But that does not make Yingluck less incompetent. (Which I don't say about Thaksin, his first term was good).

[itsari]

2 hours ago, jacko45k said:

I am not sure it is to be expected a linear conversion between risk and interest return......Thailand's banking system probably differs and do they carry a security guarantee of  mil baht equivalent in Vietnam and Cambodia? I might feel safer depositing there if I lived there though. 

I sa after searching bank guarantee in Vietnam I came up with vnd 4 billion for privatre individuals . In thai baht that is over 5 million .

[billd766]

19 hours ago, SoilSpoil said:

Thaksin's early TRT policies were already aimed at increasing consumer debt in order to stimulate the economy.

Good idea.

 

Blame Thaksin who has been out of power since 2006. You could even blame it on his family who last legally held power in 2009.

 

Your deity forbid blaming the military for the coups in 2006 and 2014 and the last coup government has been in power since 2014, some 9 years.

 

10 hours ago, SoilSpoil said:

You are wrong.

 

https://www.financeasia.com/article/thailands-economic-populism/28909

Jephraim Gundzik August 02, 2004

 

Read more at: https://www.financeasia.com/article/thailands-economic-populism/28909

 

Can you not find a newer article than this one?

 

It is 19 years old and times have changed since then, including 2 military coups, and Thaksin has not been in power for 17 years.

 

 

[h90]

27 minutes ago, sqwakvfr said:

Debt is a global problem.  As an American very few people care about the 31 Trillion debt even though the US GDP is 23 Trillion.  Allegedly the US household debt to GDP is 65%(like I believe that).  The Thai people are in the same boat as many of us in the world.  The bomb keeps ticking.  It is just that most of us do not know when the proverbial “debt time bomb” actually goes BOOM.  

The debt is a little problem as long as the rates are close to zero....But that is changing...

 

[sqwakvfr]

7 minutes ago, h90 said:

The debt is a little problem as long as the rates are close to zero....But that is changing...

 

My credit card interest rate used to a single digit.  Not anymore.  

[mommysboy]

There's probably some truth in what most people write, but the whole story is rather complex.

 

For my part I would say that though Thais are generally rather feckless with money, the poverty wages paid in Thailand and lack of social welfare make it rather difficult not to get in debt for someone who wants some sort of modern lifestyle.

[h90]

41 minutes ago, mommysboy said:

There's probably some truth in what most people write, but the whole story is rather complex.

 

For my part I would say that though Thais are generally rather feckless with money, the poverty wages paid in Thailand and lack of social welfare make it rather difficult not to get in debt for someone who wants some sort of modern lifestyle.

together with the work attitude.....

[h90]

1 hour ago, itsari said:

I sa after searching bank guarantee in Vietnam I came up with vnd 4 billion for privatre individuals . In thai baht that is over 5 million .

I would not trust any bank guarantee if there is some big collapse. If the money is on the bank but you can't exchange it and the THB devalues rapid you still loose.