Oscar2
Nov 27, 2008, 8:46 AM
Post #7 of 8
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Re: [johanson] The economy is turning sour in Lerdo
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This is an interesting question and of course, surfaces mentally and encourages discussions, here on MC. Many promulgate the financial panic, domino effect, with a sense of fear that feeds on itself and things start shutting down. Businesses of all types feel this flurry and onrush of human panic and get in lockstep with the rest.
First off, I’d like to make it clear that by no stretch of the imagination am I a qualified economist, nor politically inclined. If fact, at this advanced point in my life, its just not conducive to the kind of peace of mind, my age now feels its initialed too.....
However, from what you and I see through various prisms and sources, I come away with perhaps a lighter side of what maybe occurring and I think we all know a title wave of a “shake out” has been brow beaten and predicted by more qualified economist in the not too distant past.
Most of us know that a maelstrom of many things, amongst them artificial inflation and artificial credit qualifications were engineered by the quick buck entrepreneurs where some folks were actually buying homes in the half mil dollar range and literally had no job to boot and we all know why lenders were doing this. Yes, they would sell dollar empty buyers loans, which were resold and eventually ended up on wall street floor until now.
What are the implications of this shake out, not just NoB but SoB where American dollars have and will always be needed to help balance Mexico’s budget. The talk, I hear on MC now is slowly changing (as it should) to lesser expat traffic and this (without the panic) will, in the long run, be a tough metamorphous brought on by an overdue economic reality check.
With jobs falling wayside for Mexicans NoB and same for SoB, what long-range affect will this bring-on? IMO eventually prices across the board will drop exponentially and with this sagging economy, so will the down spiraling buyers demands.
Its like , well, the bottom has dropped out, now what? Well, the bottom hasn’t dropped out, lets just say overall expectations have lowered to a more realistic living level where the dollar will eventually now buy more and/or otherwise if businesses aren’t in-line with the economy and/or reconstruction of business affairs wane, those businesses drop out in the shake out.
I sense in Mexico and elsewhere, a precipitous downturn, will for a period, probably stymie large scale building construction and much more. We’ll have to make due with what is available at lesser prices, but isn’t that what many expats initially came to Mexico for in the first place?
Who knows, I may just be whistling in the wind but then again, it would be interesting to hear someone else’s take. Well, its early Thanksgiving morning and the hot oven anxiously wait’s for the big bird guest. Have a happy and nice Thanksgiving.
(This post was edited by Oscar2 on Nov 27, 2008, 8:58 AM)
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