The financial crisis in Thailand...

[rossco]

History cannot predict future. It is like saying that as the British had a successful empire, historically, they should start colonizing again.

The US has changed - it no longer represents stability and I suspect much of what has happened is manipulation sanctioned by the current administration.

The banks have been operating unethically for some time trading in bad debt - now that has to be lunacy. Carrying bad debt as assets is falsification - sure makes the numbers look good (Lehman Bros FY2007).

Look back at Enron - overstated assets. The US banking system has been proven to be poorly regulated. A bale out plan which is greater than all the aid given to Africa in 10 years puts that into perspective (Koffi Annan).

Looking back at the Oil spike - it was exacerbated by the weak dollar.

Historically the USD may have been respected and stable - that has changed. It is up to the US population to force its leaders to take stock and rectify the core issues and not accept the "white wash".

[TTChang]

.............    

[Snick]

And its all irrelevant, the USD will still be the reserve currency of the world. And the truly ironic thing is this mess is making the USD MORE ATTRACTIVE. Which is why its been appreciating the last few months.

As for the Baht, there are two reasons its "strong"
1) The BOT is intervening and 'managing' the decline, why they do this is anyone's guess -- they should welcome their exports getting cheaper
2) Nobody is speculating against the Baht devaluing because they are all too busy making money elsewhere (or most, losing it elsewhere). The Baht is a small pimple on the arse of currency markets and is being ignored.

[rossco]

Why is it US citizens have a blind faith in their Government?

By contrast in Europe a bunch of shareholders are taking the Execs of their bank to court to let them explain the shit they are in.

So US citizens - go to Goldman Sachs, Lehman Bros etc etc and ask them to explain in "plain english" how they explain the current situation.

How did you invest our savings
How did you report record profits last year but went bust this year.
How do you substantiate your Exec bonus program
What will you do/change to correct the problem
What guarantees do we have in the future that you will regulate correctly
How will audit firms determine compliance
How will you show/prove to shareholders/investors that your assets are real

All easy straight forward questions that any investor/auditor/Joe the plumber should ask

Finally
WHAT the hell will you do with the 700 Billion payout?

Guys get real the US banking/financial system has been manipulating the result. These guys own your 401's and your savings. Who will ultimately pay for the 700 Billion?

The confidence in the US system is badly undermined and will not recover until people are made culpable for their actions and regulations put in place.

Yes the US Dollar was the currency of choice for some while (post WWII) but why should it not change. The recent oil crisis (short lived) was exacerbated by US dollar to other currency exchange rates. Part of this was to try and ensure that foreign imports were seen as expensive relative to domestic goods - protectionism.

Time for the US electorate to challenge the institutions that caused the mess.

[Snick]

Trust the USA Government !!!
God No, and you know me better than that to even suggest such a thing.

I do trust the US economy, for all the crap and larceny it is still the largest most dynamic economy in the world.

BTW, the 700 Billion isn't even that much, compared to earlier bailouts and stimulus packages....but don't worry another trillion dollar of stimulus will be allocated next year.

[lance2546]

(Snick @ Oct. 31 2008,23:26) As for the Baht, there are two reasons its "strong"
1) The BOT is intervening and 'managing' the decline, why they do this is anyone's guess -- they should welcome their exports getting cheaper

Perhaps so that some of the Hi So Thais can sell baht for $USD, then the reverse and make a huge
profit?!?

Naa, thats way too cynical

[dummy_plug]

(rossco @ Oct. 31 2008,11:24) History cannot predict future.  It is like saying that as the British had a successful empire, historically, they should start colonizing again.

The US has changed - it no longer represents stability and I suspect much of what has happened is manipulation sanctioned by the current administration.

The banks have been operating unethically for some time trading in bad debt - now that has to be lunacy. Carrying bad debt as assets is falsification - sure makes the numbers look good (Lehman Bros FY2007).

Look back at Enron - overstated assets. The US banking system has been proven to be poorly regulated. A bale out plan which is greater than all the aid given to Africa in 10 years puts that into perspective (Koffi Annan).

Looking back at the Oil spike - it was exacerbated by the weak dollar.

Historically the USD may have been respected and stable - that has changed. It is up to the US population to force its leaders to take stock and rectify the core issues and not accept the "white wash".

The way you write one might have assumed the USA has fallen to the depths of Atlantis and China has overtaken the world! History cannot be used 'reliably' to predict future events, but you'd have to name one country in the world that has the stability economically, politically, and socially to match the USA. The answer? None! One needn't any other proof than what is happening right now with the so-called flight to quality that is happening in the currency markets. The USD is and will remain for a very long time the dominant reserve currency in the world. Full stop. Its why even governments such as China and Russia, who are very at odds with the US, still maintain large dollar reserves in the trillions of dollars.

You look at events in the past 12-24 months and write off the whole country? There are several specific examples of failures, bad loans, etc... but they are by no means reflective of the state of the US economy. Break out your history books again and recall Japan had a similar implosion in the late 80's and early 90's, last I heard they still do ok as the world's 2nd largest economy. Pretty amazing considering they have been almost moribund the past 10 years or so!

And with regards to oil, it has fallen just as fast as it rose.

Bottom line, US policy on a strong currency has been faltering the past several years, and like everything in the financial markets things tend to go in cycles. Its inevitable, but even at its worst point which was very recently I would say, the USD still garnered a huge amount of confidence in the reflection of its LONG TERM value for the things I mentioned above.

[janabiyah]

(PigDogg @ Oct. 29 2008,00:04)

(manarak @ Oct. 28 2008,06:00) BANGKOK, Oct 28 (Reuters) - Thailand will extend a full guarantee on bank deposits

Does anyone know if ALL bank deposits are guaranteed?

Or just deposits of permanent residents as had been reported on other Forums?

And if only permanent residents, is one who has a retiremnt visa considered a permanent resident?

This is a great question PD.

In Ireland the government has guaranteed all bank deposits.
After weeks of waffling by politicians who would never explain what this actually meant, they are finally admitting that the Irish taxpayer will pay up if a bank goes under.

If one goes, they will probably all go, so each Irish taxpayer will pay about 100,000 euros to cover the loss.

As this is not affordable, the whole exercise is really a confidence boosting one with no substance.

I suspect the situation in Thailand is the same. If a major bank goes, no one will get any money.

Say your prayers

[bigmick22]

time to start sticking my money under the mattress again?