Thailand is in crisis...why is the baht not?

Diversify.
To the extent you're able, if you're here for the long run, sink equal parts into your home currency and this one. Swings will make you more valuable in one currency vis a vis the other, but your bottom line changes very little.

I've already taken that bet.

I suspect the Baht will strengthen quite a bit more before it collapses some time in the second quarter of next year.

Why?

Unlike the propaganda coming from the government controlled Ferrang media, the truth is very simple.

The people of this country are very heavily leveraged, nearly every body.

The current financed building boom is only making things worse.

If the Government does in fact have the sort of cash reserves which it claims it does, this still pales into insignificant when compared to the debt in the private sector.

Once these problems begin to surface, the currency and the economy will take a beating like never before.

The markets don't take kindly to being lied to.

It really doesn't matter what people say, as in the US, when the truth surfaces the economy will take a tumble.

On second thought...
Thailand is in crisis? Says who?
They've been four years without a coup. Rather serene for Thailand. I'd call it a stretch of stability.

I'm not sure the instant, immediate, in your face, global media does anyone any favors anymore.
There is no time left for reflection, only for alarm.

The Thai media already foretells a devastating future by telling the world that their citizens have more personal debt than ever before. Did they not have simiar debt prior to the 1997 debacle? I still see vacant, half-finished buildings all over Thailand. The boom in construction is not an indicator of future growth. It shows over-kill and soon the real estate market will add to the debt-burden and then, as in the US, the bottom will fall out and we will have another 1997-type crisis in monetary practice. It is just a matter of time.....

Just because europe and usa aren't doing good,don't think to much about asia.I read where many asian countries are doing fine.

Whilst ever other countries are buying shares and government bonds in Thailand because of the higher investment and interest rates here than in the Western world, Thailand will have a fairly steady economy. However when inflation increases at the rate that it is doing here and the government is unwilling to increase interest rates to compensate for this, because of the already high level of foreign cash investment, then the bubble will burst as it did in 1997 when the same problem occurred. Time will tell but it will happen as Thailand economy is built on exports to China after their new trade agreement and we all know that China is unwilling to ruin their economy and are cooling down their economies due to high rates of inflation there. As they say what goes around, comes around.

Maybe Vietnam devaluing the Dong recently will be a wake up call to the BOT?

Vietnam's Devaluation Alarms Rival Exporters
While Few Asian Neighbors Are Likely to Follow Hanoi's Lead on Currency, Competitors Such as Thailand Brace for Fallout

Full story.http://online.wsj.com/article/SB125928712852165885.html

Galee wrote:Maybe Vietnam devaluing the Dong recently will be a wake up call to the BOT?

Vietnam's Devaluation Alarms Rival Exporters
While Few Asian Neighbors Are Likely to Follow Hanoi's Lead on Currency, Competitors Such as Thailand Brace for Fallout

Full story.http://online.wsj.com/article/SB125928712852165885.html

The problem might be the strengthening of China's currency and politics between Nations plays a big role in the import and export arena!I don't think VN has the political currency to benefit at Thailands expense!

RLTrader wrote:Can't understand it either. No matter what the mob is saying, I now expect it to start moving the other way, but a collapse, don't think so, but it would be fine with me if it did, living here.

something is on the move .
last night i drove past railway the sideings near the train station .
lots of army vehicles loaded on the rolling stock and soldiers a plenty .
this morning they have gone , probably done to BKK .
political instability ,
DIE BHART DIE .

Exactly what I've been saying for awhile now. Due to the Fed's QE policy, countries will either have to participate in their own QE to maintain parity with the dollar or risk (temporary, but very painful) harm to their economy. IMHO, the best policy would be to deal with the pain ASAP rather than delay it. But these are all politicians making these decisions and they are almost all simply looking to get re-elected. Global austerity is needed now.