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Topdoc

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Posts posted by Topdoc

  1. Do they really think a Baht 5,000 handout to a small number of 'those that qualify' is going to fix this problem? Even if they gave Baht 5,000 to every man, woman and child, it still wouldn't make up for the loss of income so far................. and the problem is still ongoing.

     

    And because of this already massive and ongoing loss of income, people will not be able to cover their costs and a massive wave of defaults is therefore just around the corner which will paralyse the banks.

     

     

     

     

     

     

  2. 29 minutes ago, saengd said:

    because they are considered safe

    But you have to ask the question, what if the Central Bank cannot address the liquidity problem in the bond market?

     

    Then those bonds will not be as safe as they were initially assumed to be!

     

    So perhaps the initial assumption was wrong. How can you deem an asset "safe" based on an assumption?

    My decades of experience in this area indicate that bonds should actually be placed in the 'liabilities' column on the balance sheet and not in the 'assets' column.

     

    Because the ability of government to re-pay the bonds is dependent on the economic situation AND furthermore, as the interest rates collapse the NPV of debt rises exponentially as shown with the sky high bond prices.

     

    If government want to reduce their debt and lower their bond liabilities, they must buy the bond back at face value today, which is something they simply cannot afford to do!

     

    The whole thing stinks like massive accounting fraud!
     

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