Thailand's household debt reaches 10 trillion baht for Q2 2014

[Anthony5]

I do know they borrowed some money from the IMF after 1997 but I don't know if they paid it back.

They paid it back pretty quick....................with a loan from Singapore arranged by dear leader. The Thais still think dear leader paid back the IMF.

[NeverSure]

Banks are doing well now. Many were bought by other more solvent banks, the economy has improved, real estate values are climbing, and the banks are again making money. Most people who were going to take a loss on a home and lose it have already done so and the inventory of foreclosures for sale is almost gone.

Nah, lots of US houses still selling for less that they cost in 1990.

You misread me. Of course houses are worth less than they were just in 2007. There was a huge crash and lots of foreclosures.

But the houses that people couldn't keep were already lost to the banks and most of those foreclosures have been sold (at a loss.) Prices are climbing as much as 10% per year now except in a very few markets where they have at least stabilized at the low prices.

The major difference between the US and Thailand is that houses will be marked down and sold at a price that will actually sell them, even at a loss to the bank.

[garyk]

I live for these turn downs. This has been happening around the world ever since I can remember. Just keep enough money in the bank ( cash on hand ) to take advantage of it. No big deal really.

The last big one... I picked up a new pickup here for 11,000 dollars. I need a new one now. So hurry up!!!!!

Edited October 2, 2014 by garyk

[NeverSure]

I live for these turn downs. This has been happening around the world ever since I can remember. Just keep enough money in the bank ( cash on hand ) to take advantage of it. No big deal really.

The last big one... I picked up a new pickup here for 11,000 dollars. I need a new one now. So hurry up!!!!!

Something like a car is a good thing to pick up. But cars didn't crash in the US because the last thing people will let go of is their car, even after their house.

You have to believe in a country to buy stocks and real estate at the bottom of a crash. The stock market in the US crashed to about 1/2 what it had been but I believed in certain companies and not only didn't sell, but I kept buying. In what they call "dollar cost averaging" I just kept buying even as prices began to climb. Now the market has not only recovered, but has gone above previous historic highs. But that requires believing your instincts.

The same with real estate. When houses dropped about 40% in some markets which was far below replacement cost, I believed that the excess inventory would go away. I also knew that when, due to population growth new houses needed to be built that house prices would more reflect the cost to build a new one. So I bought some.

It takes some courage to be a contrarian, but if you're all cash and can hold out, you'll probably be rewarded.

[Cake Monster]

With all the repossesions, toxic debt from housing developements , mortages Etc and the large 20% SME loans, it sure would be interesting to see the Banks Loans Books.

The banking institution in Thailand must be sat on a massive amount of toxic debt.

[garyk]

I live for these turn downs. This has been happening around the world ever since I can remember. Just keep enough money in the bank ( cash on hand ) to take advantage of it. No big deal really.

The last big one... I picked up a new pickup here for 11,000 dollars. I need a new one now. So hurry up!!!!!

Something like a car is a good thing to pick up. But cars didn't crash in the US because the last thing people will let go of is their car, even after their house.

You have to believe in a country to buy stocks and real estate at the bottom of a crash. The stock market in the US crashed to about 1/2 what it had been but I believed in certain companies and not only didn't sell, but I kept buying. In what they call "dollar cost averaging" I just kept buying even as prices began to climb. Now the market has not only recovered, but has gone above previous historic highs. But that requires believing your instincts.

The same with real estate. When houses dropped about 40% in some markets which was far below replacement cost, I believed that the excess inventory would go away. I also knew that when, due to population growth new houses needed to be built that house prices would more reflect the cost to build a new one. So I bought some.

It takes some courage to be a contrarian, but if you're all cash and can hold out, you'll probably be rewarded.

You are a smart guy.. I waited until the market was starting to recover. Then invested in moderate funds. I also made a tidy profit...

Edited October 3, 2014 by garyk

[cloudhopper]

Even while holding, the books have to accurately reflect the banks position, and that includes accurately stating the value of collateral for loans.

The idea that the US has suspended proper accounting practices is outrageous. The proof is that after the crash in 2007-2008 many banks got bailout loans because the value of real estate dropped and they had to reflect that on their books. That put many of them under water because they didn't have enough of their own capital to take those hits.

Banks are doing well now. Many were bought by other more solvent banks, the economy has improved, real estate values are climbing, and the banks are again making money. Most people who were going to take a loss on a home and lose it have already done so and the inventory of foreclosures for sale is almost gone.

The FASB relaxed the accounting standards with regard to asset value for banks in 2009.

http://www.marketwatch.com/story/fasb-approves-more-mark-market-flexibility

[ggold]

But Thailand refuses to mark to market or sell at market; both of which would trigger a loss of the bank's own capital. I don't know how they get away with it. See the rice scheme and the nearly 1 trillion baht borrowed from the Ag Bank for rice that either doesn't exist or is rotten and no sales have been made. Even if they sold it they paid way above world market value. But they just keep carrying that collateral on their books as it it was there to cover the loans.

They have no option, after the 1997 failure, banks are prohibited by law from selling property below the amount of the outstanding loan.

That's why when you go to the Krung Sri property pages everything is heavily discounted!

[jpeg]

Well, with an economy basically in recession, huge political problems and tourists running away, that should not be a problem, should it?

I would suggest more crackdowns on visa runners and long-term foreigners here. They must be to blame.

Why?

I believe the poster's being sarcastic.

[jpeg]

I live for these turn downs. This has been happening around the world ever since I can remember. Just keep enough money in the bank ( cash on hand ) to take advantage of it. No big deal really.

The last big one... I picked up a new pickup here for 11,000 dollars. I need a new one now. So hurry up!!!!!

Oh watch out. The vultures are circling