SeanBangkok Posted December 19, 2006 Share Posted December 19, 2006 Please explain what the Thai government did exactly, why they did it, the reaction it caused, why they took it back, and what reaction that will have. For extra credit, please explain how this will affect the future markets of thailand, including the farang condo market. I dont get how thai baht is so strong, but economy is crashing. Link to comment Share on other sites More sharing options...
backflip Posted December 19, 2006 Share Posted December 19, 2006 Are you doing a current event report for school? Link to comment Share on other sites More sharing options...
ThaiPauly Posted December 19, 2006 Share Posted December 19, 2006 (edited) Are you doing a current event report for school? I think its a reasonable question. Many people on the forum are not interested in the economics in LOS...thry only want to know how Government legislation affects them personally. edited due to a smelling pisstake Edited December 19, 2006 by ThaiPauly Link to comment Share on other sites More sharing options...
kokothemonkey Posted December 19, 2006 Share Posted December 19, 2006 Are you doing a current event report for school? I think its a reasonable question. Many people on the forum are not interested in the economics in LOS...thry only want to know how Government legislation affects them personally. edited due to a smelling pisstake that is what makes them so stupid only to whine later rather than understand the mess being made Link to comment Share on other sites More sharing options...
endure Posted December 19, 2006 Share Posted December 19, 2006 It doesn't make them stupid, it makes them unversed in economics & finance. There's no such thing as a stupid question, only a stupid answer. Link to comment Share on other sites More sharing options...
kayo Posted December 20, 2006 Share Posted December 20, 2006 The gov't are still trying to uphold the economy, while the rest of the world is stillpanicking about the coup, hence it is a false protection of the economy. (on a side note, but not relevant.. if the world had any clue about thailand, they wouldn't be panicking because of the coup.) Link to comment Share on other sites More sharing options...
britmaveric Posted December 20, 2006 Share Posted December 20, 2006 In a nutshell - govt is trying to stop forex traders pumping up the thai bht value...ie anyone who invests $20K must keep it in markets for a year or lose 30%. Well foreign investment didnt like that much and they dumped stock as fast as they could sell it. Panic erupted and it crossed a thresh hold trigger that closed the stock exchange before the market went into total free fall. So 15-20% was lost in the market, great time to buy low!!! Link to comment Share on other sites More sharing options...
ThaiPauly Posted December 20, 2006 Share Posted December 20, 2006 (edited) Good answer Brit. Darn...done it again!!! Edited December 20, 2006 by ThaiPauly Link to comment Share on other sites More sharing options...
jinjok Posted December 20, 2006 Share Posted December 20, 2006 brit summed it up nicely i think one can throw in.... coup/hyped market/overheated housing market/govt free wheeling spending (taksin) as well as uncertainty forward > it was the straw that broke the kwai's back. equities traders are TOTALLY slagging thailand and remember the x trades appear to be closed. i would not go near the market personally, but then again - im not a big gambler, even in home equity markets. i think they are all rigged. the baht has four strikes: unstable govt/large national debt/influx of foreign capital driving B higher/weakening dollar - third world country. you can add total lack of transparency in markets even before coup (eg shincorp). Link to comment Share on other sites More sharing options...
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