From the Latin Business Chronicle:
“… Mexico is not directly tied to the sub prime crisis because the mortgages in Mexico were underwritten with a tougher standard than in the U.S. But…it will cut capital worldwide.
From CNN Money:
“U.S. real estate investors are staking claims in Latin American countries where growth has returned after years of economic struggle. Property yields have hit 9% to 15% a year there, compared with roughly 5% to 8% in the U.S…
… In Brazil and Mexico, disposable income is rising and pent-up demand is lifting real estate returns.”
“Bank of Mexico Governor Guillermo Ortiz said on Friday that a crisis in the U.S. subprime mortgage market has had little effect on emerging markets.
In contrast to previous financial crises that spread rapidly to emerging markets, ‘the crisis in subprime has barely touched emerging markets,’ he told a Federal Reserve Bank of Dallas conference.”
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