Global consequences of US housing collapse

23 de abril de 2007

<body><div id="article"><tr><td height="28" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>Global consequences of US housing collapse</h1><p>April 23, (EIRNS)--One of the unspoken, but predictable, consequences of collapse of the US housing bubble is being felt by the nation's immigrant community, and by their relatives back at home, in the form of collapsing remittances from workers to Mexico and other Central and South American countries. As reported in Monday's Wall Street Journal, remittances to Mexico have dropped from a peak of $2.6 billion/mo in May of '06, to a level of $1.7 billion/mo in Feb '07. Similarily, for the month of Febrauary, Brazil received $330 million, down 25% from $446 million in the same month last year, and Guatemala has dropped from a peak of $361 million last May, to $271 million this February. This is now coinciding with a slowing of the Mexican economy, which normally would lead to an increase in remittances as workers flowed toward the wages in the US. Now both are dropping. This has even led to a decrease in border crossings, as judged from the number of apprehensions by border patrol, which are down 10% for the first quarter of this year.</p><p>There goes <em>another election issue for the Republicans</em> .</p></div></body>