Panama and the Credit Crisis

Discussion in 'Economics' started by Daal, Dec 5, 2008.

  1. Daal


    I wonder if people care to share some thoughts on how Panama is coping with the crisis and their outlook for the future there
    It looks like the US-Panama free trade agreement is going down the toilet with Obama
  2. I will be there next week.

    Panama City is grossly overbuilt, awash in credit, but they are extremely difficult people to sit down with and have a straight forward conversation.

    Local money works in with the gov. to play a game called let's stiff el gringo loco, but I rather feel that it has backfired as Miami is fast becoming a cheaper place to live, let alone the desirability factor.

    NW of Panama City, 2 hours by car, is a new development 'Buena Ventura' consisting of a golf course, new 5 star hotel (still not opened), apartments and bare lots. The lots are on for 450 -600k and then you need to build.
    The nearest town is 40mins away.

    I asked the developers, who were their target Buyers and he told me that a lot of foreigners had expressed an interest.
    Why no locals, I enquired, to which I received the customary Panamanian wall of silence.

  3. That's a very popular game in that region.
  4. Yes it is but I cannot believe foreigners get sucked into silly deals, RE either overpriced or without clear title.

    And then they turn around and blame their own stupidity on the gov. and it's people.

    If people wish to do business outside their turf, they firstly need to consider a couple of pointers.

    ... they are not in a foreign country, they are foreigners in someone elses country.

    ... a brief read of the economic and political history will give you some idea where the people are coming from.
    If the country has a history of abuse then it seems fair to assume that trait will be inside their business methods.

    There are a number of gringos (more so than eruos) who will wind up trapped in Panama because of silly RE deals.

  5. Daal


    I got some funds with their banks there and I'm wondering when their real estate bubble bursts if I should be worried about my funds. they had no failures in the past number of years but thats the same argument moodys made to rate garbage as triple A
  6. Depends upon your choice of bank.
    A major foreign bank will not fold in Panama alone.