At 8:09 PM 1/31/95, Andrew Sessions wrote: >Is there ant truth to the rumor I heard on BBC tonight that Mexico [read: the >political-economic ruling class] was three days away from defaulting on "its" >loans? Three days, three weeks, whatever - Mexico would have defaulted pretty soon if some package hadn't been invented. Mexico has huge financing needs, to cover imports and debt service, and without fresh inflows, will have to cut "growth" (such as it is) and imports sharply. This after years of sacrifice and supposedly imminent rewards. So, if Mexico doesn't get aid, it goes under, in its prsent form, rather quickly. The package must also end with a resumption of fresh inflows, a pretty risky assumption, but let's forget that for now and concentrate on the immediate deal. No package, Mexican bankruptcy. With package, a bailout of fat cats and some medium-fat-cats of both nations. What's a progressive economist to do? Root for collapse, and with it the beginning of the end of neoliberalism? Or realize that would hold tremendous risks for Mexico and its neighbors? Doug -- Doug Henwood [[EMAIL PROTECTED]] Left Business Observer 250 W 85 St New York NY 10024-3217 USA 212-874-4020 voice 212-874-3137 fax
