Household debts of Thais alarm economists

[1happykamper 362]

The seemingly ease if credit here is astounding! So many ladies paying 10k for a car to the bank each month and 20k for a house!... Non of them earn more than 20k a month!

Creative financing is necessary 555

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[Tayaout 4,107]

1 hour ago, nickstav said:

Maybe it would be prudent of the banks or private lenders to actually check on the buyers ability to repay what they will owe beforehand, which might save the poor consumer from getting into a situation that is drowning them. Not that I for a moment think that banks or private lenders have a heart, but bad debts are bad business for them too.

2008 teached us that there is no such thing as bad debt. They get repackaged together as safe "investment" for those who have savings. 

[rkidlad 31,793]

3 hours ago, PatOngo said:

But my new iPhone 11 is SOOOO cool!

Was at a my local central last Saturday. Seemed as if every man and his dog was queuing outside a phone shop or carrying a small bag which was a symbol they’d just bought one. 

[gk10002000 6,882]

5 hours ago, snoop1130 said:

The ratio of household debt to GDP has risen by 78.8 per cent

Poor and ambiguous statement in the opening sentences.  Risen from what?  Risen from when? 

[kevin612 1,154]

What happen if the Thai economy collapsed again? The last time was in 1997, it’s been a long time.

[tabarin 1,011]

32 minutes ago, kevin612 said:

What happen if the Thai economy collapsed again? The last time was in 1997, it’s been a long time.

Worldwide basically.. It looks very ugly, knowing of protests globally today, I would not say a civil world war is impossible. 
I guess they are trying to buy time and find a magical solution in every country, else it collapsed already.

What concerns me more, if that happens, I do not expect Thais or gov. to be nicer for us hehe. Might not be that safe here.

Edited October 22, 2019 by tabarin

[Chazar 8,650]

2 hours ago, rkidlad said:

Was at a my local central last Saturday. Seemed as if every man and his dog was queuing outside a phone shop or carrying a small bag which was a symbol they’d just bought one. 

Did they get the matching white pointy hat with a  big "D"  on also?

[DrTuner 24,557]

5 hours ago, marko kok prong said:

Reckon i may buy a heap of some of this debt,then if i see movement i will go short,did the same 2008/9 gotta tell i done okay know the market though boys can lose it all if you <deleted> up.

And where would you buy such instruments that would let you make a covered short? Interesting idea.

[Fex Bluse 7,907]

7 hours ago, kevin612 said:

What happen if the Thai economy collapsed again? The last time was in 1997, it’s been a long time.

All the Thai-Chinese families who, on average, are far more financially responsible, will have a next round of buying up distressed property and businesses.

 

It's one of the reasons they own almost everything now.

 

And, the wealth gap will continue to deepen.

[mikebell 13,260]

12 hours ago, snoop1130 said:

Household debts of Thais alarm economists

The debtors are not alarmed; the mindset here is live now; don't pay later.

[Hayduke 6,884]

14 hours ago, snoop1130 said:

Household debts of Thais alarm economists

 

[Assurancetourix 17,710]

12 hours ago, Matzzon said:

And the bubble grow bigger and bigger and bigger.........pooooof!

 

 

A bubble ready to explode;

it is the Thai banks that hold almost 100% of these debts;

But it's their fault;

to accept that a civil servant who earns 15,000 baht a month can put credits on his back up to sometimes 80% of his salary is suicidal; not only for the consumer but especially for the bank.
If the consumer can no longer repay, for whatever reason, it is the banks that will end up with these more than doubtful debts.

If they are not strong enough they will collapse like a castle of cards;

1997 bis repetitae worse, a thousand times worse.

[soalbundy 19,788]

12 hours ago, PatOngo said:

I'm not cool enough, I got a Samsung!

I have a mobile that you can use to telephone people

[PatOngo 41,131]

2 minutes ago, soalbundy said:

I have a mobile that you can use to telephone people

Cool!

[soalbundy 19,788]

16 minutes ago, Assurancetourix said:

 

 

A bubble ready to explode;

it is the Thai banks that hold almost 100% of these debts;

But it's their fault;

to accept that a civil servant who earns 15,000 baht a month can put credits on his back up to sometimes 80% of his salary is suicidal; not only for the consumer but especially for the bank.
If the consumer can no longer repay, for whatever reason, it is the banks that will end up with these more than doubtful debts.

If they are not strong enough they will collapse like a castle of cards;

1997 bis repetitae worse, a thousand times worse.

but think of the assets they can seize, most Thais have some paddy back 'home' in the villages