The level of credit in Mexico has shown to be low. And where credit concentrates the most favors large corporations and not companies.
Sentiment: NEGATIVE
The lack of available credit and loans is having a severe impact on small businesses in particular, but also their suppliers and the bigger companies too.
Every central banker in the world pays attention to credit growth, but not in the U.S.
Since NAFTA was put in place, Mexico has lost 1.9 million jobs and most Mexicans' real wages have fallen.
Average real wages in Mexican manufacturing are lower than they were 10 years ago, if you can believe that.
The lifeblood of job creation in America is small business, but they can't get access to credit.
Talking about Korea, it has pretty high capital ratios at banks and maintains a good credit rating.
If we don't make sure that Mexico can offer potential investors more input, they'll stop coming to Mexico. They'll go to the United States or other places where it is more economically viable to carry out their projects.
Debt is a drag, a reality you may experience with every credit-card bill you open. But for a corporation or a government, it can be even more of a drag - on economic growth and job creation.
The Federal Reserve needs to provide small businesses in America with the same low-interest loans it gave to foreign banks.
I should say many things. Mexico has been one of the losers of the 20th century. We tried many different alternatives to development and unfortunately we have 40 percent of the population poor; we have a per capita income that is extremely low.
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