Thai baht appreciation against the $

Post by **loverboy44** » Wed Dec 09, 2009 6:17 am

I agree to a lot what you are all saying but i don't know what this has to do with the rising or the falling of the US$ or the Thai Baht.
This crisis came because of a real estate bubble made in the so called anglo/american zone.
The credits were spread all over the world and that's it, so easy.
My problem is that the casino is open again.
Incredible to say but it is true that hedge funds are borrowing money from the banks because the rates are so much down and invest it in the EU or wherever. Following this they have to change US $ in massive ammounts into some other currencies.
Mr Obama what are you doing about controlling banks?
Actually nothing! He is the promising president and i think he will stay.
Same thing about the UK by the way. But does not matter much because too small.

Post by **TAMAN** » Wed Dec 09, 2009 9:22 am

Well for those who want to live in Thailand (or for that matter many other parts of the world) but have a US$ denominated income stream, these macro events all point in the direction of income stress. Some people have posed the question why is the baht high against the dollar, when the problem is that the dollar is weak against currencies that have a strong resource sector or a strong industrial sector. Understanding the problems in the US, which are not limited to the housing bubble, helps one to make informed decisions about where to place currency risk when assessing how much income you need to live in Thailand or elsewhere.

Post by **cozza** » Wed Dec 09, 2009 9:58 am

loverboy44,

What needs to change are the bankruptcy laws.

You should not be able to walk away from debt so easily if your investment loses value.

Money is being borrowed from countries with low interest rates and "invested" in countries like Aus with higher interest rates which is adding value to the Aus dollar. Easy money.