Baht Rises to 13-Year High on Speculation Fed to Buy More Debt

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aDR.gdM3WvBs

Not much to say other than; this sucks...Friends in the finance industry tell me THB/USD target price is 25. Yuck.

Bangkok Bank 10:30AM 29.62 USD 47.03 GBP 40.97 EUR Gold 19050.

"Not much to say other than; this sucks..."

do not despair my friend! if you use the search function you will find a dozen threads where five dozen (or more) experts and learned people forecast since three years a crash of the Baht.

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

Edited October 6, 201015 yr by ThaiRich

Thats great! As there are some people that hold Thai assets in the form of real estate, cash and stocks, and have spouses that get paid in Thai baht. I always tell my friends, if you LIVE here, you should have a good portion of your assets here. Does that not make sense??

whether it makes sense depends on the individual perspective and circumstances. my assets in Thailand are limited to the roof over my head and its contents as well as cash in a bank. besides that i wouldn't entrust a thai bank or a thai broker with more assets than the value of an excellent dinner for two including a good bottle of wine.

besides, none of the archaic/anachronistic thai banks nor a local broker would be able to handle my assets and instructions not to mention the legal restrictions of moving foreign currency into and out of Thailand as well as thai income tax implications.

p.s. unfortunately -perhaps fortunately? - i neither have a thai spouse nor does my spouse earn Thai Baht. but she is doing an excellent job spending Thai Baht.

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

Rather self centered, are we?

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

Rather self centered, are we?

Oh, my bad. I didn't realise we were all one big supportive family here. Well, IF the dollar ever gets real strong again and I am not able to send money home to my mother and put my goal amount in my savings account. I can just call you to chip in the difference, right?

Edited October 6, 201015 yr by ThaiRich

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

Rather self centered, are we?

Oh, my bad. I didn't realise we were all one big supportive family here. Well, IF the dollar ever gets real strong again and I am not able to send money home to my mother and put my goal amount in my savings account. I can just call you to chip in the difference, right?

No its just that your gloating is unseemly, that's all. Don't call me ...

What ever happens its only going to get worse for the exchange rate

I dont think its gloating or being self-centred. ThaiRIch is just in a position to be profiting from what is happening with the currencies. Its not like he himself is causing it, now is it? No need to be bitter because of his good fortune, just try to learn how to protect yourself. If you get paid in US and think its going lower, then open a forex account and hedge yourself. Its not difficult.

BOO HOO!!!! isn't gloating. OK, whatever ...

I dont think its gloating or being self-centred. ThaiRIch is just in a position to be profiting from what is happening with the currencies. Its not like he himself is causing it, now is it? No need to be bitter because of his good fortune, just try to learn how to protect yourself. If you get paid in US and think its going lower, then open a forex account and hedge yourself. Its not difficult.

BOO HOO!!!! isn't gloating. OK, whatever ...

So when all of you are posting about how good your life is and all the things you can buy and do with the strong American dollar and the weaker Thai baht isn't gloating huh? But I understand your being bitter as you are probably watching your monthly income disapear before your eyes, as I watched mine do for a very long time with a strong dollar verses the baht. But hey, don't worry my joy will be short lived.

I dont think its gloating or being self-centred. ThaiRIch is just in a position to be profiting from what is happening with the currencies. Its not like he himself is causing it, now is it? No need to be bitter because of his good fortune, just try to learn how to protect yourself. If you get paid in US and think its going lower, then open a forex account and hedge yourself. Its not difficult.

BOO HOO!!!! isn't gloating. OK, whatever ...

So when all of you are posting about how good your life is and all the things you can buy and do with the strong American dollar and the weaker Thai baht isn't gloating huh? But I understand your being bitter as you are probably watching your monthly income disapear before your eyes, as I watched mine do for a very long time with a strong dollar verses the baht. But hey, don't worry my joy will be short lived.

I don't recall ever doing that personally, but yes, that would sometimes be gloating too, depending on the tone, saying BOO HOO!!!! and mocking others, yes definitely. Enjoy your money though! Everyone likes it, and none of us are saints.

Edited October 6, 201015 yr by Jingthing

I don't know much about finance but what happens when the largest consumer economy in the world can no longer afford Asia's exports? Then when Asia's demand for raw materials from Africa/South America drops that will effect buying power of those countries (and Australia). Weakening their buying power of Asian exports. Will this not cause an eventual correction or just another recession?

Thats too bad, as there are brokers here that are international and have good reps. And the truth be told, can you really trust a broker anywhere?

i wouldn't trust any broker anywhere on this planet VIBE! that's why my assets are handled by three multinational banks in jurisdictions where clear laws exist, namely Singapore, Switzerland and Luxembourg.

Bangkok Bank 14:45 PM 29.55 USD 46.89 GBP 40.93 EUR 19050 GOLD.

I don't know much about finance but what happens when the largest consumer economy in the world can no longer afford Asia's exports? Then when Asia's demand for raw materials from Africa/South America drops that will effect buying power of those countries (and Australia). Weakening their buying power of Asian exports. Will this not cause an eventual correction or just another recession?

Soros has some thoughts about this. He believes China is now the driving force globally but because overall the current Chinese economic power is smaller than the historic power of the USA consumer (now greatly diminished) that this simply means much slower global growth for a very long time.

I always tell my friends, if you LIVE here, you should have a good portion of your assets here. Does that not make sense??

YES!

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

Rather self centered, are we?

Wow ! Do the words 'Pot' & 'Kettle' mean anything to you, Mr Drama queen?

UNBELIEVABLE!

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

You want to take GOOD STRONG THAI BAHT & put it into the floundering and miserable US housing market MADNESS!

I dont think its gloating or being self-centred. ThaiRIch is just in a position to be profiting from what is happening with the currencies. Its not like he himself is causing it, now is it? No need to be bitter because of his good fortune, just try to learn how to protect yourself. If you get paid in US and think its going lower, then open a forex account and hedge yourself. Its not difficult.

if your income is on a monthly basis, e.g. salary or pension, and you have no additional liquid assets which generate income then there is no way to hedge the local Baht expenses. unfortunately quite a number of Thaivisa participants are in this position between a rock and a hard place.

then there is another group who would be able to hedge but don't believe in any other currency than the one of their home country. on top of that most people don't know how to hedge by forward buying or selling one currency vs. another one.

but whatever, if Thairich has a reason to be happy let him be happy!

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

You want to take GOOD STRONG THAI BAHT & put it into the floundering and miserable US housing market MADNESS!

to each his own!

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

You want to take GOOD STRONG THAI BAHT & put it into the floundering and miserable US housing market MADNESS!

No it's not. He is simply leveraging a strong currency at an appropriate time.

I saw a 50 % change in my Thai investments (from a UK perspective) within a few years - 2005 THB about 75 ish now 47 ish. Balancing across two currencies is an interesting one. And gives YOU the power to decide.

Edited October 6, 201015 yr by pkrv

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

Rather self centered, are we?

Wow ! Do the words 'Pot' & 'Kettle' mean anything to you, Mr Drama queen?

UNBELIEVABLE!

let's ask Jingthing to prepare a poll.

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

You want to take GOOD STRONG THAI BAHT & put it into the floundering and miserable US housing market MADNESS!

No it's not. He is simply leveraging a strong currency at an appropriate time.

I saw a 50 % change in my Thai investments (from a UK perspective) within a few years - 2005 THB about 75 ish now 47 ish. Balancing across two currencies is an interesting one. And gives YOU the power to decide.

Philip,

I totally agree.

It is always amazing to me that the first reaction of many to an increase in a particular asset is to buy more, and the first reaction to a drop in an asset price is to sell. It is truly the "buy high, sell low" mentality which gets people in trouble.

This person has the idea to sell the THB which is strong and to buy an asset in the USD, so he is selling high (not necessarily at the top) and buying low (not necessarily at the bottom) which is sound. Market timing is impossible. But in the long term his is a more prudent approach. Particularly if he is diversifying.

So we are on the same side of the argument again :jap:

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

You want to take GOOD STRONG THAI BAHT & put it into the floundering and miserable US housing market MADNESS!

It's not madness. For the long term, it's very smart for a person who can use dollars anyway and/or US housing. The US housing market is somewhere near the bottom, that is obvious.

Go lower, go lower YEAH!. That new house I'm looking to buy in Florida that would have cost me 6.6 million baht just 2 months ago, now only cost me about 6 million baht and if it goes down to 25 baht to the dollar. That 6.6 million baht house is only gonna cost me 5 million baht. GO LOWER, GO LOWER!!!!! Since I am working in Thailand and get paid in Thai Baht. This dramatically increases my purchase power when I send money back home or order things from the internet. Those of you who are getting social security and other checks from the USA and your monthly money is actually getting smaller. BOO HOO!!!!

Rather self centered, are we?

Wow ! Do the words 'Pot' & 'Kettle' mean anything to you, Mr Drama queen?

UNBELIEVABLE!

I said WE, not YOU. Enough with the pots & kettles, I'm getting hungry!

Not hedge the local Baht expenses, but hedge the US dollar. If they are getting USD income every month, even a 50% hedge is better than nothing. And with Oanda FX account, you can use 50:1 leverage, so very little capital is needed. So, they get their income in USD and its going down vs the Baht, but their FX account is going up in value to help offset.

obviously we are talking two languages Vibe. i have no idea what your "hedge" means.

It's not madness. For the long term, it's very smart for a person who can use dollars anyway and/or US housing. The US housing market is somewhere near the bottom, that is obvious.

I guess you could be considered right, depending on how loosely you use the words, "SOMEWHERE NEAR" the bottom. I guess if it drops another 10% you could be accurate but if US housing drops another 30%, you'd still consider yourself accurate?

I have absolutely no problem with anyone converting good strong baht for USD......I think its a smart option, but the business end of it all is to safely park that USD somewhere where its going to increase in value, not decrease.

It's not madness. For the long term, it's very smart for a person who can use dollars anyway and/or US housing. The US housing market is somewhere near the bottom, that is obvious.

I guess you could be considered right, depending on how loosely you use the words, "SOMEWHERE NEAR" the bottom. I guess if it drops another 10% you could be accurate but if US housing drops another 30%, you'd still consider yourself accurate?

I have absolutely no problem with anyone converting good strong baht for USD......I think its a smart option, but the business end of it all is to safely park that USD somewhere where its going to increase in value, not decrease.

History will tell, but I don't see it going down more than 30 percent. Precise bottom picking is for fools who miss markets. For a long term hold, the time is NOW.

Not hedge the local Baht expenses, but hedge the US dollar. If they are getting USD income every month, even a 50% hedge is better than nothing. And with Oanda FX account, you can use 50:1 leverage, so very little capital is needed. So, they get their income in USD and its going down vs the Baht, but their FX account is going up in value to help offset.

obviously we are talking two languages Vibe. i have no idea what your "hedge" means.

We have had this discussion before - He too is hedging his bets.- And funnly enough market syntetic instruments also do this.