The peso is like a runaway freight train going downhill without brakes.

Why would I worry about the Canadian dollar? That's the Canadians problem.

Why would you worry about the $MX?

Because it has a direct affect on my livelyhood. Is that good enough for you? Not that it is any business of yours.

That's understandable.

An appropriate song to listen to while watching the peso free-fall.

Right this minute @ 1129, the peso is $18.63 against the US dollar.

And the DOW is down over 500 points......

CanuckBob wrote:And the DOW is down over 500 points......

If this is the start of another US recession, it will affect this area if for no other reason than many/most retirees have 401Ks. When they plummet, everyone feels poorer, less likely to take a chance on buying a Mexican casa here. While the peso:dollar exchange is quite sweet to those of us already ensconced with our homes here, taking a chance on a house in a foreign country is not what retirees do when their retirement savings are in free-fall.

IMHO it's a market correction and a bit of over reaction.

Let's hope David. It is reminiscent of 2008 but with completely different reasons......I don't think this one can be bought out of.

2008? I don't think so; we don't see banks failing, car companies going bankrupt, or the other things we saw then. Not sure what caused it but the plunge in oil prices is the culprit.

Like I said "completely different reasons"......yet still a market crash (or maybe a correction). I read that it may "correct" 20% with a very slow recovery.

I expect a slow rebuild too.  Although there was no catastrophic event to cause this, maybe only irrational fear, so we could see a bounce.  Quien sabe?

Oil is the culprit

Now, if'n i wuz the king of saudi Arabia,
I think i'd show them texuns whut drill baby drill can do when i dont even have to drill....

just sayin - 10.00 per bbl - pesos?

Saudi Arabia is on the brink of bankruptcy. They're losing money on every barrel they ship.

If they go public with their oil company it is said they will raise anywhere from 1 to 10 trillion dollars. Yes, that's trillion. That will tide Saudi over for a few weeks......jaja.

This morning the financial markets are warning that we should get ready for a Mx peso trading at 20 to 1 US dollar and that the Mx economy may be strongly damaged by such an event.

So even if you have dollars your prices will be higher than you may expect them to be.
The government is dumping US dollars into the black hole to slow the drop but I suspect that the release of this morning's statement suggests they know the power to slow this up is nearing an end.

Please provide a link.

Google Mexican news...in Spanish. Baja Insider.com...in english prediction 20 to 1 by June

Interesting post by a person with no creds. So, just someone's opinion. I'm not saying we won't see 20 but I believe it will come later than mid-year. The Canadian $ has also lost 40% vs. the $USD but not much being said about that. Also, when it comes to finance, currencies, and the stock market, nothing goes in one direction forever.

benjji wrote:This morning the financial markets are warning that we should get ready for a Mx peso trading at 20 to 1 US dollar and that the Mx economy may be strongly damaged by such an event.

So even if you have dollars your prices will be higher than you may expect them to be.
The government is dumping US dollars into the black hole to slow the drop but I suspect that the release of this morning's statement suggests they know the power to slow this up is nearing an end.

Which is basically what I said in a previous post and was scoffed at by the board's economic expert.

There is no such "warning" in the financial news today. BTW, Mexico has used barely 18% of its foreign reserves to slow the Peso's decline. The rise of the $US is not the doing of Mexico anymore than it is the work of Canada whose currency has declined exactly as Mexico's has. Doubtful that the Mexican economy will be "strongly damaged" by the rising $US.

If you are referring to David as the board's economic expert Clete I'd agree. Over the years David has been the only person I can remember who makes a logical case and presents his insights and observations with links when and where needed.

But please do continue to post your thoughts. This is a serious subject and deserves all manner of discussion.

El Ecomomista has quoted the head of the Mexican economical council as well as it's own experts at their fear that the Mexican peso will continue to weaken...they do not suggest that it is anything more than the continued collapse of oil prices. Mexico is now selling oil at approx $20.00 us a barrel and not finding many takers other than the folks whose contracts are still in effect.

I am NOT disagreeing with David but I am noticing the louder cries that "trouble" MAY lie ahead...maybe the sky is not falling but it may be getting overcast.

oncesubtle wrote:If you are referring to David as the board's economic expert Clete I'd agree. Over the years David is been the only person I can remember who makes a logical case and presents his insights and observations with links when and where needed.

But please do continue to post your thoughts. This is a serious subject and deserves all manner of discussion.

I agree, I always appreciate David's thoughts and knowledge. And if someone disagrees with him, he has the class and good grace not to get mad about it but rather looks to understand more about the other point of view.

There is now talk in Mexico of "20/20", pesos to the dollar and barrel of oil.

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