Panama, Saturday, Jaunary 19, 2008
La Prensa
"Is not recession, but economy slowdown" Felipe Chapman emphasizes that a new reduction of rates of the Fed would lower the price of the cost of financing in Panama.
Tejeida said that a recession cycle in US could cool the real estate "boom" in panma.
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The former- general manager of Panama Stock Exchange, Felipe Chapman, differs from those who speak of American recession and considers that the markets are "overreacting" to the performance of the economy of that country. "In the United States is a deceleration, not a recession and I do not believe either that one comes. In the worse of the cases, there will be a thoroughness of the growth, but not a backward movement ", concluded.
Unlike the financier David Saied, Chapman thinks that the measures that the Bush administration is applying and the Federal Reserve (Fed) are those that corresponds. "Within the arsenal of tools that they have to face this situation, they are using the correct ones. With those 150 billion dollars they would mitigate the fall of the consumption and would help the most vulnerable sectors to face the critical situation that they have with its houses ", said. But he agrees with Saied and Miguel Tejeida in affirming that Wall Street will continue falling. As far as the reductions of the banking rates of reference of the Fed, its vision is optimistic.
"That would lower the price of the cost of financing in Panama. It would not be an immediate adjustment, but in months one would feel here ", indicated. Like an indirect effect, the contraction of the consumption that would come tied to a recession cycle in US could cool the local real estate boom.
"Most of real estate that is being sold to foreigners in Panama are acquired by Americans who, at the time of a recession, would trim their expenses and would exclusively keep their money for personal consumer goods and mortgages there, not abroad", Tejeida said.
However, the ordinary Panamanians could see themselves favored; if the boom cools off, the prices of the houses would begin to lower.
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