Can some Thai person explain why Thais are putting up prices

[stilljustbrowsing]

Now I am confussed! Does a deflationary depression mean the depression is going down, therefore improving. Or does it mean the deppression is inflating, therefore getting bigger, in a negative sense of course.
For people to understand what you mean, you have to send your messages with a "KISS" = Keep It Simple, Stupid!

[PettyTyrant]

Now I am confussed! Does a deflationary depression mean the depression is going down, therefore improving. Or does it mean the deppression is inflating, therefore getting bigger, in a negative sense of course.
For people to understand what you mean, you have to send your messages with a "KISS" = Keep It Simple, Stupid!

we are in a depression... and it is deflationary... right now prices are dropping..prices for everything...from what you own to what the store owns to what the big companies own... everything and i mean everything is loosing its value...

This means that the value of the money that you have in savings is falling... the value of your house, your condo, your office building is falling... if you are paying a mortgage on anything, it is likely that you will end up owing MORE than that property is worth...this is what deflation is...this is what is happening...

a depression is long term... maybe 5-10-20 years .. a recession is short lived... less than 2 years...

The problem that banks all around the world are having right now is that they don't know what anything is worth so they don't want to loan any money...

For example if you want to buy a house, for 2 million baht... the banks says to you, sorry we can't loan you the money to buy that house because next year your house will be worth 1 million baht...

that is the problem with deflation.. all your stuff ..even your money in savings.. is worth less and less everyday.

[stilljustbrowsing]

What a sad existence some people must have.
I have no savings, (well, not in a bank anyway) live in a rented house and manage to support my family comfortably from my earnings (after paying my Thai tax)
So, if I die tommorow my family has a problem, but apparently no more so than those that play with money instead of working for it. BTW, don't give me the "let the money work for you "syndrome, it has already fallen flat on it's face!
Back on topic, it is either "put up or shut up" The majority of shop "owners " have to pay rent. The landlords have never reduced their rents, so I suppose that is a good place to start questioning greed?

[PettyTyrant]

What a sad existence some people must have.
I have no savings, (well, not in a bank anyway) live in a rented house and manage to support my family comfortably from my earnings (after paying my Thai tax)
So, if I die tommorow my family has a problem, but apparently no more so than those that play with money instead of working for it. BTW, don't give me the "let the money work for you "syndrome, it has already fallen flat on it's face!
Back on topic, it is either "put up or shut up" The majority of shop "owners " have to pay rent. The landlords have never reduced their rents, so I suppose that is a good place to start questioning greed?

yes, this is a good point...
This topic is commercial property value. I read recently that Dr. Yellen, the FED President in San Francisco(?) said that commercial property prices would start to fall this year and into next year...where 2010 would probably see the US markets bottom...

So, by juxtaposition (which may be fallacious), i assume that Emerging markets (like Thailand) lead in good times and lag in bad times... matter of fact they seem to have about a 6 month to 1 year lag for Macro events....

So...to respond to your question....what about rent prices?

just wait... hold on to your seat... you ain't seen nothing yet....

Personally, I think the next down-leg will start in coming weeks.

[Ian]

I currently find myself in an interesting situation, I own property in England and by proxy in Thailand, some is personal and some earns rents. I have bank accounts in England, Thailand and off shore. At one time they roughly balanced each other, if income were legs I stood upright. Now one leg is getting shorter but my other leg is getting longer, so my dilemma is do I walk with a tilt or do I hop?

[Ian]

I currently find myself in an interesting situation, I own property in England and by proxy in Thailand, some is personal and some earns rents. I have bank accounts in England, Thailand and off shore. At one time they roughly balanced each other, if income were legs I stood upright. Now one leg is getting shorter but my other leg is getting longer, so my dilemma is do I walk with a tilt or do I hop?

The concensus of opinion is to off-load the baht - I got rid of mine when I left at THB69 to the GBP - I won't say that I did any better where I put the money but at least it's safe and so am I
I know this is difficult for some One Year Stay visa holders and that is exactly the intention of the Elite who are in baht (and many other things as well)
The baht is artificially strong and it's beginning to cripple the countries exports (including tourism)
it's not the only thing crippling the country, as we know, but the baht at 50 is definitely not helping either
None of this is of any concern to the Reds who have never had any money to worry about

I am only holding enough Baht to satisfy immigration, fortunately I bought these baht at a good exchange rate. Now I live off my ATM cards and will never shift any off shore money to Thailand until I see a realistic exchange rate.

[PettyTyrant]

What a sad existence some people must have.
I have no savings, (well, not in a bank anyway) live in a rented house and manage to support my family comfortably from my earnings (after paying my Thai tax)
So, if I die tommorow my family has a problem, but apparently no more so than those that play with money instead of working for it. BTW, don't give me the "let the money work for you "syndrome, it has already fallen flat on it's face!
Back on topic, it is either "put up or shut up" The majority of shop "owners " have to pay rent. The landlords have never reduced their rents, so I suppose that is a good place to start questioning greed?

If you don't own anything of value then you are not at risk of loosing value... the more you have, the more you loose with deflation... the danger for those who don't own anything is no jobs, higher taxes, and less support for pensioners...

Those that have the least are at risk of homelessness and disease ... and because of the sorry job of the media and education in Thailand, no one is preparing for this RIGHT NOW.

We have red shirt and yellow shirt all fighting over who want's t be the captain of a sinking ship and no one is prepping the life boats...

Personally, I think Thailand needs a Speedo revolution... take off those shirts and let your bellies hang out.

[Ian]

What a sad existence some people must have.
I have no savings, (well, not in a bank anyway) live in a rented house and manage to support my family comfortably from my earnings (after paying my Thai tax)
So, if I die tommorow my family has a problem, but apparently no more so than those that play with money instead of working for it. BTW, don't give me the "let the money work for you "syndrome, it has already fallen flat on it's face!
Back on topic, it is either "put up or shut up" The majority of shop "owners " have to pay rent. The landlords have never reduced their rents, so I suppose that is a good place to start questioning greed?

If you don't own anything of value then you are not at risk of loosing value... the more you have, the more you loose with deflation... the danger for those who don't own anything is no jobs, higher taxes, and less support for pensioners...

Those that have the least are at risk of homelessness and disease ... and because of the sorry job of the media and education in Thailand, no one is preparing for this RIGHT NOW.

We have red shirt and yellow shirt all fighting over who want's t be the captain of a sinking ship and no one is prepping the life boats...

Personally, I think Thailand needs a Speedo revolution... take off those shirts and let your bellies hang out.

A slight revision needed here, "If you don't own anything of value then you are not at risk of loosing value"
In my case, "If you own something of value but have no intention of ever selling it, then you are not at risk of loosing value"

My house and land at the peak of the property boom was valued at a million pounds, it is currently valued at 700,000 pounds. So on paper I have lost 300,000 pounds. However, I have no intentions of ever selling it so the 300,000 loss is purely imaginary, my house and land has not shrunk, my orchard has the same number of trees and my lawns are still surrounded by the same number of flower beds

[stilljustbrowsing]

I suppose all values (finacially speaking) go up and down depending on where the investments are or where made.
This subject is not my "forte" so perhaps I should just "butt out".
The thing is this, I have seen people invest in all sorts of things, working themselves, litterally to death before they have the benefit of their efforts, so sad!

[PettyTyrant]

A slight revision needed here, "If you don't own anything of value then you are not at risk of loosing value"
In my case, "If you own something of value but have no intention of ever selling it, then you are not at risk of loosing value"

My house and land at the peak of the property boom was valued at a million pounds, it is currently valued at 700,000 pounds. So on paper I have lost 300,000 pounds. However, I have no intentions of ever selling it so the 300,000 loss is purely imaginary, my house and land has not shrunk, my orchard has the same number of trees and my lawns are still surrounded by the same number of flower beds

Right... good point... however people in your situation are not in the majority... many depend on jobs for their income... and those are drying up

You said , have investments in rental property and I assume you live off some of this income or have a savings ...by hook or by crook, there is no avoiding the effects of deflation ... I mean, the money that you get from rent or dividends or interest from attest is diminishing ... you say you are not selling your property therefore you are not loosing value?

What about next year when your apartment is vacant because no one has a job ... or when you are forced to reduce rent prices because all rent prices have dropped in your area ... because no one has a job ... and those few people who have jobs ...what do you expect them to be doing?...they will be moving into their new house because it will be cheaper to buy a house than to rent an apartment or house ... how do you suppose you can ultimately avoid the effects?