HOW SERIOUS WAS MEXICOS NEAR COLLAPSE FOR THE U.S. FINANCIAL MARKETS AND FOR THE WORLD ECONOMY?
Well I think that if President Clinton hadn’t shown the courage to put together the financial assistance package that there would have been a global recession by now. My sense from my experience in the financial community is that the money, investment would have dramatically flowed from the developing markets to safe investments, and that would have triggered a serious recession starting in the developing – emerging markets, which would have come back to bite the industrial countries. SO IT’S POSSIBLE THAT CARLOS SALINAS’S POLITICAL AMBITION TO BE THE FIRST PRESIDENT WHO DIDN’T DEVALUE THE PESO COULD HAVE TOUCHED OFF A WORLD WIDE DEPRESSION OR RECESSION? Well I think once the devaluation hit and once the flight of money occurred in Mexico, it would have occurred in other emerging markets and I think that would have created a global recession. The only thing that prevented that was to reinstill the confidence which was done by President Clinton’s financial assistance package. DRUG TRAFF
