Mexico's Response to the Crisis

So far, the economic consequences in Mexico of the past month's turmoil have been mild in comparison to the US, but the climate is increasingly worrying. The two nations' economies are linked now more than ever, but Mexico doesn't appear to be headed for a recession, and its banks mostly steered clear of the mortgaged-backed securities that seduced so many in the States. Influential Treasury Secretary Agustín Carstens basically said that the essentials of the Mexican economy are strong, and although many felt free to disagree with him, he wasn't openly mocked. However, dark forecasts are growing more frequent, especially now that the bailout was rejected. Carlos Slim said that this is the worst crisis since 1929. Pedro Ferríz didn't go quite as far, but was notably concerned in today's morning show. Prominent economists are lowering next year's growth projections to below 2 percent.

Another recurring theme in Mexico is surprise at how weak Bush is. This Excelsior front page features the prez looking like he's watching a beloved animal in its death throws, with the teaser quote, "We have a big problem." One of El Universal's headlines today is, "US, sunken and without leadership." Another said, "Rejection of Bush drags Mexico down." It's not schadenfreude either. No one loves Bush in Mexico, but neither paper is anti-American. The sentiment seems more of one of frustration at the vacuum at the top of the American government.