Mexico’s President Rules Out Company Bailouts or Requesting IMF Line

Yahoo Finance ^ | March 23, 2020 | Michael O'Boyle

[nickcarraway]

President Andres Manuel Lopez Obrador said the nation’s companies shouldn’t expect bailouts or tax amnesties and that Mexico won’t tap a standing credit line with the International Monetary Fund even as other economies take extraordinary measures to fight a slump in activity.

“No more bailouts in the style of the neoliberal period, which were given to banks, to large companies. No, don’t even think that there will be tax forgiveness or other mechanisms that were used before,” Lopez Obrador said Monday in his morning news conference.

[nickcarraway]

Lopez Obrador has been a much more conservative president than advertised.

[2banana]

Damn. Hey Trump. Talk with this guy.

[Zhang Fei]

I think he’ll change his tune shortly. He’s out of his depth.

[Moonman62]

Conservative to some, class warrior to others.

The danger here is a financial lockup, and he’s taking a big risk as far as that goes.

[sheehan]

the drop in oil prices have hit Mexico hard - the country is too corrupt.

I’m glad we’ve closed the border... time to repatriate all the illegals

[nickcarraway]

I don’t think we have closed the border.

[Moonman62]

He’s out of his depth.

...

You’re right, but some FReepers are already adoring his actions.

[SanchoP]

He’ll do what the cartels tell him to do. Meet the new boss,same as the old boss.

[Trump.Deplorable]

We have a lot of it closed off

But we stopped herds just flowing over

Sure we will get a gutsy climber here or there but that was expected. Plus they were being encouraged by our media to do that anyways.

Is the border entirely sealed off? No

Is it better today then it was 4 years ago? Everyone says yes

[nickcarraway]

It went down because of the virus.

[pnut22]

Will the illegals who get a gov’t check be sending it to Mexico as remittances? Mexico may well get a “boom” when the U.S. gov’t sends out the moolah.

[Zhang Fei]

[You’re right, but some FReepers are already adoring his actions.]

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The wreckage from mass bankruptcies, liquidations, layoffs, etc takes a while to sort out. Imagine what happens when corporations representing 50% of the nation’s unemployment go into receivership. Who owns what at the end has to be figured out, and while that’s happening, 50% of the labor force is idle and not paying rents, mortgages, etc. Basically, anyone who got screwed in this process is going to hate the party in power forever, whereas anyone who benefits (not many, because of collateral damage) won’t be particularly grateful because of all the agita he had to go through, from watching friends and family members flattened by an economic tornado.

And that is why Amlo will step back from the precipice and bail out companies left and right like every other national leader out there. To prevent his political party from becoming extinct during his tenure.

[nickcarraway]

Hopefully one day the U.S. can be just like Venezuela.

[rollo tomasi]

How about businesses including your precious corporations enter into sustainable CBIs (That act as a guard against bad decision-making policies and poor planning) that cover the losses and then the central bank/Federal government can cover for the insurance agencies while the payback comes into the forum of increased premiums when times become more prosperous?

The problem with your model is that currency is debased, inflation wacky, and interest rates manipulated on the backs of future generations. Keynesian economics including the business AS WELL AS the government paying bailouts back instead of running perpetual debt that blows the future to hell.

[dp0622]

What happens to your small business if some freak incidence occurs? The govt their with buckets of money to bail you out??

#### the airlines and restaurants and hotels.

New companies will open if the old ones cant survive.

Who the #### wouldn’t open a business if they know they’re gonna get bailed out like little b.tches every 10 years when something doesn’t go their way.

That ain’t capitalism. That’s national socialism

[KingofZion]

Amazing. The populist leftist has got it right, and our so-called conservatives in the USA are pushing a 2 trillion bailout financed by the printing press.

[Zhang Fei]

[What happens to your small business if some freak incidence occurs? The govt their with buckets of money to bail you out??]

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Anyone can open a garage, restaurant or corner grocery. When Boeing goes under, it’s gone forever, along with the raft of parts makers and their suppliers that rely on Boeing for business. The difference between the US and the rest of the world is a combo of vast natural resources and these world-leading companies. Without these companies, we’re Argentina/Brazil/Russia.

[Ge0ffrey]

Time will tell if Obrador is doing the right thing. My guess based on Mexico’s hotter climate is that Mexico will have far fewer cases and deaths. Also, Mexico is a federal republic like the US and the governors of their own states are doing thier own thing. For example, the governor of Guerrero is providing daily essential care packages to resid3mts.

[Ge0ffrey]

Trump is starting to get it right. We should be protecting the elderly and vulnerable and letting the rest of us get on with our lives.

[Zhang Fei]

[My guess based on Mexico’s hotter climate is that Mexico will have far fewer cases and deaths.]

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Agreed. It’s good that Mexico is only getting hit this close to summer.