Thais are increasingly in debt, default

[tominbkk]

I know so many Thais who were given one or more CCs and I have no idea why they were given them. Immediately they were maxed out for a bunch of unneeded luxury goods.

[spidermike007]

The system is designed to keep people in debt, a debt-based economy. That is why banks are in business, and how they are able to swindle people.

There is still a relatively low amount of debt here, compared to the US. I do not know of a single individual who paid for their home with cash, in the US. I know of very few who buy their cars for cash. Everyone I know in Thailand owns their home free and clear. They bought their homes for cash. All my friends, my girlfriends mother and father, her sister, etc. Land and home is paid for. Same with their cars. Most people I know own their vehicles free and clear. A few have notes on them, but they are in the minority. When was the last time you saw someone bring $30,000 cash into a car dealership in the US? I just do not buy into this at all. I know a few people who have notes on tractors, which they pay off within a few years. So, credit card debt is on the rise. Welcome to the 21st century. I do not a see a crisis brewing here.

[aussieinthailand]

It is not just the Thai households having increasing debts. The country itself has a massive increase in government debts incurred by the previous government.

Economic growth then was based on increasing debts, similar to what China did and is still doing, abet on a smaller scale.

"The country itself has a massive increase in government debts incurred by the previous government"

Yu'p it's no surprise that governments borrow money, it happens all over the world.

Thaksin's government DECRESED debt from 57% GDP in 2001, to 41% GDP in 2006 all while investing in a massive infrastructure program, FACT look it up,

and yes the previous gov did increase debt, and so did Australia's previous gov, and the current USA gov, and the beat goe's on.

and now so is this current government increasing debt, but spending on what?

let's see now,,,,

Ohh yeah free world cup games on tv, how much was that again???

Free movie tickets, free zoo tickets, free food, now that would have cost a few baht huh?

a big do over on army trucks I don't recall the actual amount but I'm sure is wasn't a cheap little exercise.

So why not spen the money on things like, now lets see what els,,, any money for over crowded hospitals and improvements? no'p,

how about schools? hmm don't think so,

tackling the impending flood? no to much really.

catching poachers and putting them in gaol for 20 years? not yet,

then maybe getting the corrupt people off of their (inactive post's) and put them in gaol, arrr that little chest nut's still in play huh.

what about the blue diamond, it's only been 25 years.

and the (re-education) camps, for all the people reading the wrong books, eating sandwiches in public, and a three finger salute,

and any one that don't agree with them.

so government debt is a problem, and so is house hold debt, for me it's simple if you don't have the cash or can't afford to pay back the loan then you can't afford it.

Edited September 3, 2014 by aussieinthailand