webfact Posted September 15, 2016 Share Posted September 15, 2016 Household debts jump to the highest level in nine years BANGKOK: -- Thailand’s household debts have increased to 298,005 baht per household which is the highest in nine years, according to the findings of the University of Thai Chamber of Commerce. The findings came from a survey of 1,221 samples during September 1-12, said Mr Thanawat Pholvichai, director of the university’s Economic and Business Forecast Centre, on Thursday. He noted that household debts increased by an average of 20,000-30,000 baht a year, but, for this year, the debts jumped to 50,000 baht per household by average and the main cause of the increased household debt stems from the obligation to pay instalments for car, credit cards and consumer products averaging 14,889 baht each month. Government officials’ debts come from monthly installments on cars and houses and credit card debts whereas wage earners’ debts are from children’s tuition fees, cars and daily expenses. Full story: http://englishnews.thaipbs.or.th/household-debts-jump-highest-level-nine-years/ -- © Copyright Thai PBS 2016-09-16 Link to comment Share on other sites More sharing options...
lannarebirth Posted September 15, 2016 Share Posted September 15, 2016 (edited) So, household debt is at 9 year ago levels, while per capita GDP has risen 22% in the same time. That seems pretty good . http://www.tradingeconomics.com/thailand/gdp-per-capita But household debt to GDP ratios appear to be in a steady incline. http://www.tradingeconomics.com/thailand/households-debt-to-gdp Something doesn't seem to square and I'd attribute it to a small sample size for the survey. Edited September 15, 2016 by lannarebirth Link to comment Share on other sites More sharing options...
shirtless Posted September 15, 2016 Share Posted September 15, 2016 It will continue to rise , this does not count for loan sharks Link to comment Share on other sites More sharing options...
PatOngo Posted September 15, 2016 Share Posted September 15, 2016 Household debts jump to the highest level in nine years Sounds like a country on the cusp of greatness!!! Link to comment Share on other sites More sharing options...
chiang mai Posted September 15, 2016 Share Posted September 15, 2016 20 minutes ago, PatOngo said: Household debts jump to the highest level in nine years Sounds like a country on the cusp of greatness!!! If you understood economics you'd realize you were actually correct - see post 2 again. Link to comment Share on other sites More sharing options...
clockman Posted September 15, 2016 Share Posted September 15, 2016 Bringing happiness to the people? Link to comment Share on other sites More sharing options...
trogers Posted September 16, 2016 Share Posted September 16, 2016 House and car... Just the typical lag time between macroeconomics and microeconomics. With the recent news of banks tightening credit, with 70% rejection on mortgage applications, household debts would be measured as declining five years from now. Link to comment Share on other sites More sharing options...
chiang mai Posted September 16, 2016 Share Posted September 16, 2016 1 minute ago, clockman said: Bringing happiness to the people? That's not what you wrote in your previous post! An economy where debt is increasing in a balanced way is growing and growth means jobs, prosperity, opportunity etc so that could be seen as greatness, especially when other countries, advanced countries at that, are performing so poorly. Link to comment Share on other sites More sharing options...
maoro2013 Posted September 16, 2016 Share Posted September 16, 2016 There are many private debs owed to private lenders which would not, probably, be revealed in this survey of a very few people. A lot of country people cannot obtain finance from the banks and therefore obtain cash, short and long term, from others. The survey is fairly useless I think. Link to comment Share on other sites More sharing options...
adhd Posted September 16, 2016 Share Posted September 16, 2016 as long as they don't teach: live within your means, nothing will change there is always the quick shark loan option that brainless people go into without thinking of the consequences Link to comment Share on other sites More sharing options...
Agent Sumo Posted September 16, 2016 Share Posted September 16, 2016 How easily and quickly some people forget that this was at the root of the 2008 financial crisis and it's why economic growth in the West has been so anaemic since. Link to comment Share on other sites More sharing options...
chiang mai Posted September 16, 2016 Share Posted September 16, 2016 3 minutes ago, Agent Sumo said: How easily and quickly some people forget that this was at the root of the 2008 financial crisis and it's why economic growth in the West has been so anaemic since. Consumer debt was the cause of the 2008 financial crisis, I never knew that! Link to comment Share on other sites More sharing options...
trogers Posted September 16, 2016 Share Posted September 16, 2016 2 minutes ago, Agent Sumo said: How easily and quickly some people forget that this was at the root of the 2008 financial crisis and it's why economic growth in the West has been so anaemic since. And will continue to be so, with all those QEs... Crisis is to weed out the stupid, not reward them... Link to comment Share on other sites More sharing options...
Agent Sumo Posted September 16, 2016 Share Posted September 16, 2016 3 minutes ago, chiang mai said: Consumer debt was the cause of the 2008 financial crisis, I never knew that! The housing crisis which led to the collapse of various financial institutions was triggered by over-indebtedness of people with subprime mortgages and their subsequent inability to afford to service their debts when the adjustable rates kicked in. The economic growth problems the West has now have their roots in household indebtedness since consumption accounts for nearly 70% of gross domestic product in the US, Britain, France etc. Link to comment Share on other sites More sharing options...
chiang mai Posted September 16, 2016 Share Posted September 16, 2016 5 minutes ago, Agent Sumo said: The housing crisis which led to the collapse of various financial institutions was triggered by over-indebtedness of people with subprime mortgages and their subsequent inability to afford to service their debts when the adjustable rates kicked in. The economic growth problems the West has now have their roots in household indebtedness since consumption accounts for nearly 70% of gross domestic product in the US, Britain, France etc. I don't want to go off at a tangent so perhaps we can discuss this in a more appropriate thread, but, sub prime was a banks/lending issue not a consumer debt issue. Link to comment Share on other sites More sharing options...
lannarebirth Posted September 16, 2016 Share Posted September 16, 2016 6 minutes ago, Agent Sumo said: The housing crisis which led to the collapse of various financial institutions was triggered by over-indebtedness of people with subprime mortgages and their subsequent inability to afford to service their debts when the adjustable rates kicked in. The economic growth problems the West has now have their roots in household indebtedness since consumption accounts for nearly 70% of gross domestic product in the US, Britain, France etc. Just a heads up. Consumer debt is not considered the same as mortgage debt. Mortgage debt is collateralized while consumer debt seldom is. Link to comment Share on other sites More sharing options...
Agent Sumo Posted September 16, 2016 Share Posted September 16, 2016 2 minutes ago, chiang mai said: I don't want to go off at a tangent so perhaps we can discuss this in a more appropriate thread, but, sub prime was a banks/lending issue not a consumer debt issue. Lending wasn't the problem until people couldn't pay. Link to comment Share on other sites More sharing options...
Agent Sumo Posted September 16, 2016 Share Posted September 16, 2016 1 minute ago, lannarebirth said: Just a heads up. Consumer debt is not considered the same as mortgage debt. Mortgage debt is collateralized while consumer debt seldom is. Credit card debt is routinely securitised as are car and student loans. Link to comment Share on other sites More sharing options...
trainman34014 Posted September 16, 2016 Share Posted September 16, 2016 Thai's just gotta have that big house, latest phone/tablet and huge gas guzzling shiny pick-up truck to show BIG FACE around their neighbourhood and with their workmates. My wife worked as a Nurse for 25 years here and says all her workmates ever talked about was what they were going to borrow money for to buy next. Been here just short of 10 years and have lost count of the amount of houses and vehicles i have seen re-possessed by the banks and other lending institutions. The banks here are doing exactly what the banks in the US did and are lending vast sums of money to people who will never be able to repay it.....and we know what the result will be ! Link to comment Share on other sites More sharing options...
lannarebirth Posted September 16, 2016 Share Posted September 16, 2016 1 minute ago, Agent Sumo said: Credit card debt is routinely securitised as are car and student loans. I've never had a car loan but I believe that's true, the lender holds title till loan is paid off. I have had credit cards and student loans though. Neither was collateralized. Link to comment Share on other sites More sharing options...
Agent Sumo Posted September 16, 2016 Share Posted September 16, 2016 The banks are crooks. They borrow money for nothing and gouge credit card and loan holders with disgusting interest rates. As far as I'm concerned, those bastards deserve everything they get and if it wasn't for the taxpayer safety net they quietly rely on, they'd be a lot more careful about what they lend and who they lend to Link to comment Share on other sites More sharing options...
Agent Sumo Posted September 16, 2016 Share Posted September 16, 2016 2 minutes ago, lannarebirth said: I've never had a car loan but I believe that's true, the lender holds title till loan is paid off. I have had credit cards and student loans though. Neither was collateralized. And how long ago was that? Link to comment Share on other sites More sharing options...
lannarebirth Posted September 16, 2016 Share Posted September 16, 2016 1 minute ago, Agent Sumo said: And how long ago was that? Early 80's student loan. Credit cards since the 70's to this day. Link to comment Share on other sites More sharing options...
Orac Posted September 16, 2016 Share Posted September 16, 2016 So, household debt is at 9 year ago levels, while per capita GDP has risen 22% in the same time. That seems pretty good . http://www.tradingeconomics.com/thailand/gdp-per-capita But household debt to GDP ratios appear to be in a steady incline. http://www.tradingeconomics.com/thailand/households-debt-to-gdp Something doesn't seem to square and I'd attribute it to a small sample size for the survey.Could a rising disparity in wealth/income explain it - large increase in income for wealthy whilst poorer sections of society borrow more. In increase in gdp per capita does not neccesarily mean all incomes are rising equally.I am not an economist so would be interested if this could explain the figures. Link to comment Share on other sites More sharing options...
Agent Sumo Posted September 16, 2016 Share Posted September 16, 2016 1 minute ago, lannarebirth said: Early 80's student loan. Credit cards since the 70's to this day. Securitisation of student loans wasn't that common back then. Google credit card securitisation. It's widespread now. Link to comment Share on other sites More sharing options...
alant Posted September 16, 2016 Share Posted September 16, 2016 2 hours ago, chiang mai said: If you understood economics you'd realize you were actually correct - see post 2 again. Please help me understand the economics that you are refering to, I am also not an economist. Link to comment Share on other sites More sharing options...
chiang mai Posted September 16, 2016 Share Posted September 16, 2016 1 minute ago, alant said: Please help me understand the economics that you are refering to, I am also not an economist. See posts 2 and 8 Link to comment Share on other sites More sharing options...
lannarebirth Posted September 16, 2016 Share Posted September 16, 2016 4 minutes ago, Orac said: Could a rising disparity in wealth/income explain it - large increase in income for wealthy whilst poorer sections of society borrow more. In increase in gdp per capita does not neccesarily mean all incomes are rising equally. I am not an economist so would be interested if this could explain the figures. That is certainly one possible explanation. Link to comment Share on other sites More sharing options...
alant Posted September 16, 2016 Share Posted September 16, 2016 1 minute ago, chiang mai said: See posts 2 and 8 Thank you, what about the 74 that default? is that consistent with the economics? Link to comment Share on other sites More sharing options...
lannarebirth Posted September 16, 2016 Share Posted September 16, 2016 3 minutes ago, lannarebirth said: That is certainly one possible explanation. Also I think Thais are buying more durable goods like cars and tractors now than they did years ago. So, higher debt level but possibly leading to higher productivity and longer lifetime of the goods. Link to comment Share on other sites More sharing options...
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