Thailand is being severely affected by the current crisis. Despite dependent on export, our economic fundamental is different from those of Singapore and China.

Theoretically, Thailand should raise interest rate to curb the current spiraling inflation that is hurting most people in the country. But the Thais are not like the Singaporeans, Chinese, or Malaysians. Most of the Thais are indebted badly as a result of Thaksin’s highly-politicized consumption stimulus in the past 6 years. Many people from the middleclass to poor have lavished money with Japanese credit card and personal loans on imported Chinese goods and Japanese cars. Raising interest rate at this time will surely hurt these people. Social problems will follow.

Don’t expect that the new government will perform. It will resume Thaksin’s notorious pump-priming scheme to stimulate the consumption and please the grassroots instead of improving the country’s badly needed infrastructure. Therefore, raising interest rate is probably out of sight for now.

I am rather in support of raising interest rate than procrastinating, which will cost Thailand more later on.

“SET rallies on reports of new cabinet line-up”
The Stock Exchange of Thailand (SET) has surged by almost 15 points upwards — opposite to the Dow Jones Industrial Average — in Thursday’s morning trading session, boosted by news reports that the list of new cabinet members would be released soon.
http://enews.mcot.net/view.php?id=2583

I mean what’s the point ? Europeans markets are falling this morning among many bad news. And because of the FED drama.

So it’s almost a sure bet : SET will be in the red tomorrow.

But yet, the show must go on ! We are so proud. We have a new-old government, yeepee, everything is rozy now, everything is fine. Samak will save us.
I mean : it’s totally pathetic.

My point : people are stupid. That’s the core of the issue. Unfortunatly.

Give them TV, booze and some tits, and they will show just what they are : living organisms with a minimum brain for vital functions.

Therefore : no hope.

[okay, okay, I agree, I'm in a bad mood today ]

BOT is really going deja vu of 1997 reverse-version, again pegging to USD. It is almost like we are virtually “subsidizing” the export sector…

Would this government have the gut to lift the 30% cap control and take the plunge? Finance ministry seat is definitely getting hotter…