Obama to Follow Rubin's Legacy Support to Mexican Economy?

At the height of the Mexican Peso Crisis it was the Rubin bailout in the Clinton Administration that made the Treasury loan to Mexico at 10% interest. This saved the Mexican bond market and the peso. The result was their ability to repay the load in less time than expected.

At the time a loan of $52 billion was supported by the US Treasury's ability to borrow at 5%. The difference of 5% amounted to a huge profit for the United States. This was brought out in the e-mail streams that I provided at the time with the profit margin widely quoted in the press.

With this legacy, the Mexican economy should continue to prosper under more conservative internal management and the US Treasury more liable to come to rescue than if under the previous type of Administration policy.

Latin Stocks Present Grand Opportunity

Mexico of course included. I like VTO which is trading on very thin volume on the NYSE today. This company has everything going for it to stage a spectacular turn around. Low input costs: labor, natural gas and credit. They stand to benefit from lower refinancing costs with the low interest rate environment.

http://finance.yahoo.com/q?s=vto


My purchse today was Brazilian GOL. This airline company is benefitting from increased ari traffic - it was up 7% for Brazil in December. This paid a whopping dividend last year.

WSJ Article on Mexican Stocks - Bullish

http://online.wsj.com/article/SB123120286025455847.html?mod=yahoo_hs&ru=yahoo

In my e-mail response to Ken Parks:

My portfolio on clearstation.com under MexCom has many of these. I personally own more speculative plays: CX, VTO & ICA.

I see these as outperforming the Bolsa based on their leverage and lower interest rates. As credit loosens up I expect their refinancing to be successful and look for doubles in the stock prices for all in '09 with possibly one giving me a triple.

Clearstation Portfolio

My clearstation.com portfolio contains many Mexican stocks