Lite Beer Posted February 23, 2015 Share Posted February 23, 2015 Last year’s household debts amount to 85% of GDP BANGKOK: -- Thailand’s household indebtedness for the whole last year is expected to amount to 85 percent of growth domestic product or GDP and there is a tendency that the household debt problem will worsen, according to the National Economic and Social Development Board. The NESDB’s findings show that 85-89 percent of the low income earners such as farmers and general workers have created debts from spendings on consumer products but only 17-18 percent of them are capable of servicing their debts.Unemployment rate in farm and non-farm sectors last year increased with the number of unemployed in both sectors totalling 230,000 representing an increase of 0.84 percent.As for the unemployment problem for this year, NESDB said that drought problem must be watched out closely as it could affect the unemployment problem. Source: http://englishnews.thaipbs.or.th/last-years-household-debts-amount-85-gdp -- Thai PBS 2015-02-23 Link to comment Share on other sites More sharing options...
ronz28 Posted February 23, 2015 Share Posted February 23, 2015 Who makes loans to a group of people when only 18% of that group are capable of ever repaying the debt? Are the lenders writing the debts off or keeping them on their balance sheets to stick it to the shareholders or taxpayers when they go bankrupt? Link to comment Share on other sites More sharing options...
Asiantravel Posted February 23, 2015 Share Posted February 23, 2015 Debt junkies borrowing to finance a lifestyle Link to comment Share on other sites More sharing options...
trogers Posted February 23, 2015 Share Posted February 23, 2015 Debt junkies borrowing to finance a lifestyle And such a lifestyle was encouraged by...? 1 Link to comment Share on other sites More sharing options...
clockman Posted February 23, 2015 Share Posted February 23, 2015 One day, somebody will have to the piper! 1 Link to comment Share on other sites More sharing options...
Popular Post thesetat2013 Posted February 23, 2015 Popular Post Share Posted February 23, 2015 Who makes loans to a group of people when only 18% of that group are capable of ever repaying the debt? Are the lenders writing the debts off or keeping them on their balance sheets to stick it to the shareholders or taxpayers when they go bankrupt?You don't read the news very much. They made it easier to get loans and credit last year. Even the malls in Bkk were making special offers for everyone to increase spending in their malls. Add this to the fact that extra holidays are being created to increase spending by locals and it is a recipe for disaster. I read the average household debt last year was about 135000. With most unable to repay and living beyond their means by use of credit. Then the car scheme with which so many purchased cars just to get that money the gov was offering and now they can not repay or make the payments. There will be a lot more people poor next year than this or last 4 Link to comment Share on other sites More sharing options...
trainman34014 Posted February 23, 2015 Share Posted February 23, 2015 ''Only 17-18% of them can service their debts ''. As many of these people have no collateral to show the banks to start with does this not mean they are in for a banking disaster ? Link to comment Share on other sites More sharing options...
Popular Post Anthony5 Posted February 23, 2015 Popular Post Share Posted February 23, 2015 They should encourage some more monopolies then, and increase the cost of living more, to get the super rich even richer. Never understood how local produce can raise so much in price, even when commodities decrease in price and local currency is strong, but here in Thailand that is the case. Take a look at the Thai food in Big C and Lotus, and you will see that they constantly increase their prices. 3 Link to comment Share on other sites More sharing options...
Thai at Heart Posted February 23, 2015 Share Posted February 23, 2015 Is this mortgage or unsecured debt. Make a big difference. Link to comment Share on other sites More sharing options...
Plowman Posted February 23, 2015 Share Posted February 23, 2015 Debt junkies borrowing to finance a lifestyle Now add to that an unpopular Junta racking up public debt to try and buy support, troubled days ahead. Link to comment Share on other sites More sharing options...
worgeordie Posted February 23, 2015 Share Posted February 23, 2015 Maybe the people are only following the way Governments around the World manage their fiscal polices,debit is the norm. regards worgeordie 2 Link to comment Share on other sites More sharing options...
Popular Post Soi Sauce Posted February 23, 2015 Popular Post Share Posted February 23, 2015 Who said something along the lines that, "Debt was good." That was the whole scheme of things so a certain clan could carry out a massive land grab. If u think different, you need to go bak 2 skool. 4 Link to comment Share on other sites More sharing options...
baboon Posted February 23, 2015 Share Posted February 23, 2015 Debt junkies borrowing to finance a lifestyleAnd such a lifestyle was encouraged by...? Who? Link to comment Share on other sites More sharing options...
hanspi46 Posted February 23, 2015 Share Posted February 23, 2015 And on the countryside you have the farmers goverment creditcard, so every Farmer is building up a dept of 50k Bt because they can buy the seeds and other goods by card now and pay or not next year. 1 Link to comment Share on other sites More sharing options...
salavan Posted February 23, 2015 Share Posted February 23, 2015 Who makes loans to a group of people when only 18% of that group are capable of ever repaying the debt? Are the lenders writing the debts off or keeping them on their balance sheets to stick it to the shareholders or taxpayers when they go bankrupt? the british banks did Link to comment Share on other sites More sharing options...
salavan Posted February 23, 2015 Share Posted February 23, 2015 ''Only 17-18% of them can service their debts ''. As many of these people have no collateral to show the banks to start with does this not mean they are in for a banking disaster ? very interesting and quite possible 1 Link to comment Share on other sites More sharing options...
surangw Posted February 23, 2015 Share Posted February 23, 2015 they should figure in the loan sharks and gold shop loans into this, it may come out to over 100% 1 Link to comment Share on other sites More sharing options...
surangw Posted February 23, 2015 Share Posted February 23, 2015 One day, somebody will have to the piper! or they will kill the piper 1 Link to comment Share on other sites More sharing options...
HiSoLowSoNoSo Posted February 23, 2015 Share Posted February 23, 2015 Thailand's growth the last couple of years been faked, most of it been on borrowed money, and I assume many of the new big buildings all over Bangkok been build by money amassed by corrupt politicians and their cronies. They have probably forgot already what caused the 97 crisis. 1 Link to comment Share on other sites More sharing options...
PatOngo Posted February 23, 2015 Share Posted February 23, 2015 Last year’s household debts amount to 85% of GDP .................but my iPhone 6 is just sooooo cool. 1 Link to comment Share on other sites More sharing options...
trogers Posted February 24, 2015 Share Posted February 24, 2015 Thailand's growth the last couple of years been faked, most of it been on borrowed money, and I assume many of the new big buildings all over Bangkok been build by money amassed by corrupt politicians and their cronies. They have probably forgot already what caused the 97 crisis. Children of those who caused the 97 crisis were too young to remember. They need to learn first hand, and not from history. Link to comment Share on other sites More sharing options...
Popular Post alantheembalmer Posted February 24, 2015 Popular Post Share Posted February 24, 2015 (edited) Thailand never ceases to baffle me, as all perceived economic theory and wisdom seems to go out of the window in this corner of the world. Edited February 24, 2015 by alantheembalmer 3 Link to comment Share on other sites More sharing options...
iancnx Posted February 24, 2015 Share Posted February 24, 2015 Next.... Crime rate goes up. Plan accordingly. Link to comment Share on other sites More sharing options...
Tatsujin Posted February 24, 2015 Share Posted February 24, 2015 Thailand never ceases to baffle me, as all perceived economic theory and wisdom seems to go out of the window in this corner of the world. It's simple. To most Thai's, there simply is no tomoro, only today, right now. Oh, and no history either, especially with respect to those mythical countries that exist outside of Thailand's borders, those ones that have been through all of this 100's of years ago, and what little history is actually taught here that doesn't sound good simply gets dropped or blatantly ignored. 2 Link to comment Share on other sites More sharing options...
Tatsujin Posted February 24, 2015 Share Posted February 24, 2015 Thailand never ceases to baffle me, as all perceived economic theory and wisdom seems to go out of the window in this corner of the world. It's simple. To most Thai's, there simply is no tomoro, only today, right now. Oh, and no history either, especially with respect to those mythical countries that exist outside of Thailand's borders, those ones that have been through all of this 100's of years ago, and what little history is actually taught here that doesn't sound good simply gets dropped or blatantly ignored. 1 Link to comment Share on other sites More sharing options...
shirtless Posted February 24, 2015 Share Posted February 24, 2015 This is the example set by previous governments so its ok to borrow , where are the safeguards .We are heading for a massive correction unless we can borrow more money, 1 Link to comment Share on other sites More sharing options...
Cake Monster Posted February 24, 2015 Share Posted February 24, 2015 This large amount of " household debt ", which is transparent debt, is just a part of the problem. There is probably just as much debt in the " Black Banking Sector ", through loan sharks, Illegal banks, Etc. Many, many people in Thailand do not have credit scores the same as in the developed world, because thier earnings are insufficient for credit cards / loans through the mainstream banks. As a first resort to borrow the money for houses, cars, and other lifestyle purchases, these people resort to the " Black Banking Sector " to obtain money, with very little realistic means of being able to repay. The BOT, has already expressed much concern over the amount of household debt being restrictive on any action they are able to take to stimulate the economy, such as devalueing the baht. And for sure the mainstream banks will be holding massive amounts of " Toxic " debt from Developers, Exporters Etc, who have seen their market bomb over the last 2 years. 1997 again ? time will tell on that one. Link to comment Share on other sites More sharing options...
iancnx Posted February 24, 2015 Share Posted February 24, 2015 (edited) This is the example set by previous governments so its ok to borrow , where are the safeguards .We are heading for a massive correction unless we can borrow more money, An interesting discussion here. This time around what do you think will be the nature of the correction? Specifically looking at Thai economics. Banks go under? Baht gets hammered on FOREX? Thai downgraded to junk? The rich stay rich as they can go off shore. The poor get much much poorer. Banks cash in on all those chanots secured against the debt. Land ownership for the working class becomes an exception rather than the norm? Unhappy days ahead. I posted similar around 18 months ago. Household Debt was 71% of GDP back then. Now at 85% I should thing we are on the cusp of the correction you mention? Edited February 24, 2015 by iancnx Link to comment Share on other sites More sharing options...
iancnx Posted February 24, 2015 Share Posted February 24, 2015 (edited) This large amount of " household debt ", which is transparent debt, is just a part of the problem. There is probably just as much debt in the " Black Banking Sector ", through loan sharks, Illegal banks, Etc. Many, many people in Thailand do not have credit scores the same as in the developed world, because thier earnings are insufficient for credit cards / loans through the mainstream banks. As a first resort to borrow the money for houses, cars, and other lifestyle purchases, these people resort to the " Black Banking Sector " to obtain money, with very little realistic means of being able to repay. The BOT, has already expressed much concern over the amount of household debt being restrictive on any action they are able to take to stimulate the economy, such as devalueing the baht. And for sure the mainstream banks will be holding massive amounts of " Toxic " debt from Developers, Exporters Etc, who have seen their market bomb over the last 2 years. 1997 again ? time will tell on that one. When it blows we may have a similar situation in terms of effect on the baht, and probably interest rates, but the reasons for any crisis may well be restricted (largely) to Thailand as I sense the rest of East Asia may well be ahead of the curve in terms of lessons learnt. How and to what extent the (desperate) working class Thai responds is the issue long term Farangs will wish to analyse. I suspect the Chinese are ready waiting in the wings. Edited February 24, 2015 by iancnx Link to comment Share on other sites More sharing options...
trogers Posted February 24, 2015 Share Posted February 24, 2015 This large amount of " household debt ", which is transparent debt, is just a part of the problem. There is probably just as much debt in the " Black Banking Sector ", through loan sharks, Illegal banks, Etc. Many, many people in Thailand do not have credit scores the same as in the developed world, because thier earnings are insufficient for credit cards / loans through the mainstream banks. As a first resort to borrow the money for houses, cars, and other lifestyle purchases, these people resort to the " Black Banking Sector " to obtain money, with very little realistic means of being able to repay. The BOT, has already expressed much concern over the amount of household debt being restrictive on any action they are able to take to stimulate the economy, such as devalueing the baht. And for sure the mainstream banks will be holding massive amounts of " Toxic " debt from Developers, Exporters Etc, who have seen their market bomb over the last 2 years. 1997 again ? time will tell on that one. When it blows we may have a similar situation in terms of effect on the baht, and probably interest rates, but the reasons for any crisis may well be restricted (largely) to Thailand as I sense the rest of East Asia may well be ahead of the curve in terms of lessons learnt. How and to what extent the (desperate) working class Thai responds is the issue long term Farangs will wish to analyse. I suspect the Chinese are ready waiting in the wings. More moonlighting by the three sexes. Link to comment Share on other sites More sharing options...
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