The author has very lofty goals for Miami.Singapore is one of the top five financial centers in the World where as Miami is not even in the top five in the US. South America does not have enough economic might compared to other regions eg Asia and the biggest economy in South America have hit the doldrums. Art Basel Miami is a great event to host but NYC is the art capital of US and besides there are Art Basel Switzerland, Frieze, TEFAF Maastricht and ARCO Madrid and of these Art Basel Miami are only the third largest. I don't see Miami becoming a financial big wig any time soon.
I am from Miami, work in finance and been following the mkts since 2005 or so. This story has been going on since I can remember. It is BS. First of all, Singapore became hot because of the extremely favorable taxation for corps and funds, and because it was for many a place to hide money. Other than the no state tax thing, Miami does not have any of that. All I see in Miami is a bunch of big firms with their financial advisers flirting with South American clients, that's it. Hedge Funds and prop trading firms come and go and the talent is simply not here. Spoke to at least two prop trading firms that were here (First NY and Trillium) and in both cases they were either shutting down or downsizing. Plenty of rich people in Miami, but most of them spend only a few months per year here to have fun, then they go back north were they really make their money and usually use their local broker there. The rich money that stays here is old money, people retiring...nothing exciting in other words. Btw the firms that deal with Latin clients (UBS, Credit Suisse, HSBC and Merrill) are under so much scrutiny all the times that it is a pain in the ass to transact business that way. Already Brazil has gone after a few clients and Merrill brokers for helping Brazilians hide money here. It is only going to get worse with time.
As far as I know, the only firms that even have a trading floor here in Miami are HSBC (saw it firsthand, very small, 10 people at the most) and JP Morgan. I don't get why people keep referring to Miami as the Wall St of the south...I never hear of top grads saying "my goal is Miami."
In less than 5 years you will see a tremendous explosion nicknamed lil manhattan. The lanscape is changing right in front of my eyes. Miami World, Brickell City Center. 5 1000ft buildings are in the works. Billion on a train. I dont know about financial hub but the rich are buying and theyare buying big baby.
Most of those are just satellite offices. Miami can't come close to head count and AUM. Besides American companies encumbered by regulation can't adapt fast enough to fast boomlets that happen in Emerging Markets. Wall Street/America works on a slower business/hiring/revenue cycle. In the 1990's Companies headquartered in Singapore would grab Americans/Europeans/Canadians backpacking thru Asia, stick them in a suit, and throw them in front of a Japanese/Korean PM to sell product. Also, because the average Singaporean is an automaton. ( Please don't be offended if your Singaporean. But you know what I mean, Lah.) So, I am making an analogy that the center of finance in Latin America will be run from there. As for the next 'mercan financial center. It is obviously New Jersey.
[quote="...I never hear of top grads saying "my goal is Miami."[/quote] LoL. Only if you majored in Dance/Salsa.
I wonder if Cuba will be the true financial hub of the Western Hemisphere ? I'm talking 30 years plus from now. Their ports etc are amazing. Walmart super centers on the way
Very possible! But, Cuba will need a Lee Kwan Yew. Unfortunately, America might call him a New Communist and undermine him. We have a problem with absolute power. Just a few generations ago, Singapore was a fishing village on a hunk of rock without deep ties to Chinese money. Malaysians laughed when they declared independence and said that they would starve in a few years. Cuba has so much more going for it. However, there is this thing about every ex-Spanish colony.....Some kind of ingrained corruption that is hard to overcome. It's centuries of indoctrination....constabulary abuse, graft, corruption etc etc. Take the Philippines, for example. The number one economy (and a protectorate of the US) after we layed waste to Japan with nukes in WWII. They didn't drop the ball, they forgot to pick it up.
That's nothing new really, been going on for the last 15yrs already. Miami will always be a hot area when it comes to real estate and urban development. Does not mean the city will become the next Wall St though.