Mexico’s Finance Minister says the US economic slowdown is not yet affecting the Mexican economy. Pardon me while I laugh hysterically. I may have been born at night, but it wasn’t last night!
Not even two hours into the trading day and I already have whiplash. That isn’t a good sign of a happy market. Stay safe out there, protect your capital/profits!
5 Comments
May 27th, 2008 at 11:45 am
Lisa, Doesn’t U.S. drug abuse increase as the economy declines? This would cause an uptick in the amount of certain “goods” traditionally exported to the U.S. from Mexico. Hence, I would expect to see a rise in Mexicos GDP.
May 27th, 2008 at 12:22 pm
I don’t know ecklebob, with consumer spending on the decline, users of certain “goods” may have to make due with the home-grown “goods”.
May 27th, 2008 at 12:38 pm
Plus, don’t forget that the Mexican state can barely keep a lid on the traffickers. So that uptick in GDP will be tempered with increasing police costs, corruption, a general breakdown of the (barely) civil society….
Little has changed in Mexico over the past 15 yrs since NAFTA that wasnt ultimately the result of the US offshoring manufacturing and buying back those parts and things. So, if the gringos quit buying, where go the miniscule mexican middle class? Hmmmmm.
May 27th, 2008 at 1:01 pm
gio, Where does the miniscule Mexican middle class go? To the state I live in, Texas.
May 27th, 2008 at 1:27 pm
Shopping in san antonio, right?!
I go to queretaro fairly often and its true that the economy does not seem to have been negatively impacted as of yet. I expect that will change radically by end of year, perhaps by end of summer…. high commodity prices probably masking some slowdown in manufacturing there. But US remissions are down, govt. subsidization of gas must be hurting, and inflation starting to head up there too… how about tourism TO mexico? Mexicana tix have doubled in the past 6 mos…..