Wednesday, October 8, 2008

Mexico Takes Step To Recover Peso

It started out this morning with gloom and doom on the Mexican market. I watched the dollar go from 12.7 this morning to 13.3. Laredo was reporting an exchange rate at 12.7 and in McAllen as high as 15 to 1.
Late this morning el secretario de Hacienda y el gobernador del Banco de México, Agustín Carstens y Guillermo Ortiz, announced an auction of 2.5 billion dollars. Tomorrow they will continue to sell off another 400 million dollars. Mexico's dollar reserves are over 80 billion. How much they will continue to feed into the system nobody knows. There is supposed to be a press conference today.
The predicition is short term crisis but with a quicker than expected recovery. World markets now control this. As I stated yesterday about the constant visual "in your face" economics here in Mexico of the buy/sell of the dollar it is hard not to hear, see or feel something. It does create a state of panic as you see the numbers.
People in general, in my opinion, now realize this is a global situation and not a Mexican one and that patience is the key. I would still like to see the media and the government do spots advising people about the steps to take in this environment, staying calm and saving your money being the two most important. The Mexican Bolsa closed down .99% remaining above 20,500 points.
I didn't post sooner as I too am taking some steps; moving things around, searching for better interest rates and a little negociating seeing what I should or shouldn't do. Better to be prepared than just sit around twiddling my thumbs.
Apart from that, water is the other big topic here. The rains didn't let up until the last hour or two. We have had constant downpours since yesterday.
The Big Debate
The "Big" part of the debate really never showed up. We have an expression in Spanish, "pena ajena". That's when you are embarrassed for someone else. Well, I felt pena ajena for John McCain. He was literally crumbling on stage. I just don't like the way he talks down to people and his constant reminder of his level of experience. Obama did okay and Tom Brokaw didn't show too well either. All three seemed to have problems with nerves while on camera. I really set up for the show and ended up a bit disappointed.
Dodge Durango
I took the Durango to get fitted for a hitch. They said I should bring the Patty Wagon in to see if they can swap out the hitch and the controller. Maybe tomorrow. I really want to get the rv out on the road with the Durango.


  1. I had a Dakota which is wired the same as your Durango. The controller plugs directly into an existing plug under the dash above the brake pedal. Don't let them cut the wiring as it is a plug-in unit. Your existing controller probably will not fit. I would be surprised if the hitch fit either. Again build specify for model and make. Both items are easy bolt on or plug-in units.

  2. When we bought the motorhome in El Paso in April, the Canadian and USA dollar were just about par. Now the USA dollars is seeing artificial highs because people are selling stocks and buying dollars. The Peso and CAN dollar are falling against this artificial rise of the USA dollar. We went out this morning and bought some USA dollars to get us through the USA on our way to Mexico in two weeks. A little stabilization would be nice right now...