How Does the Obama Effect Affect the Playa del Carmen Economy?
The election of Barack Obama as the next President of the USA has certainly removed uncertainty, which will have a positive effect on the USA economy, since consumers and investors are looking for a new direction and leadership. with an improvement in the stock market, the US economy will be given a boost,  and by helping to recapitalize banks, the future for the USA economy is looking  brighter from here on out.

Obama has three economic plans - an economic stimulus package, a plan to address the mortgage crisis, and his long-term economic platform.

1.      1. The $190 billion stimulus package consists primarily of tax rebates to be mailed out in Q1 2008, which will spur consumer spending and boost GDP growth. It also has plans to reduce foreclosures, which will help the real estate market recover, thus helping banks' balance sheets.

2.      2. His mortgage crisis plan consists primarily of actions, like streamlining regulatory agencies, that will fix many of the underlying problems that caused the crisis. However, it doesn't provide an immediate boost to the economy.

3.     3. His long-term economic platform is visionary in that it addresses income inequality issues and development of green technologies, thus increasing jobs and providing a competitive edge for the U.S. His proposals to end credit card fraud and reform bankruptcy laws will help reduce personal debt. His proposal to end the war in Iraq and improve defense budget oversights will help reduce the $740 billion in annual military spending. However, his proposal to review NAFTA could harm free trade.

All of Obama's proposals must be weighed against their impact on the U.S. deficit and debt. The $700 billion bailout bill and other measures to end the mortgage crisis will add to next year's debt, already at the $9 trillion mark. Once the recession is addressed, Obama must provide leadership to reduce the debt and restore fiscal responsibility.

Barack Obama's plan is an encompassing plan which reflects the President-Elect's analytical and measured leadership style. Obama's proposal would streamline regulatory agencies, especially those that oversee banks that borrow from the government, establish a financial market advisory group, improve transparency for financial disclosure, and crack down on trading activities that could manipulate markets. He would prohibit government aides from working on issues related to a former employer for two years and prevent them from lobbying after they leave. He would put online meetings between governmental agencies and lobbyists. (Source: Greenbay Press Gazette, Obama strikes back on economic reform1, September 23, 2008)

Obama's Economic Stimulus Plan:

Obama would enact a windfall profits tax on oil companies to give families a $1,000 rebate. He would give $25 billion to states for health, education, housing, and heating assistance. Obama would fund $25 billion in public works projects. He would provide $500 in tax credits per person and $1,000 per family, and eliminate income tax for seniors making less than $50,000 per year. Obama would eliminate capital gains taxes for small business investors, and extend write-offs for small business equipment purchases. (Source: BarackObama.com, Economic Stimulus Plan2)

Overall, the plan is visionary and will help address many important issues in the USA economy.

How will all of this affect Playa del Carmen's economy?

WELL, Although the mortgage loan requests have increased based on the lack of ability of Americans to pull money out of their properties in the USA, the number of cash buyers purchasing in the area has notably been reduced.

By putting money into the consumer's pockets, whether directly through rebates and tax credits or indirectly through health insurance, Obama will help boost the economy as soon as these changes are implemented.  This will in turn boost consumer confidence and will encourage spending.

The flow of cash in the United States will also encourage consumer investing.  Which leads us to believe that, being that Playa del Carmen is one of the most profitable real estate investments, as it is still considered by many, in the Caribbean, real estate sales in the area will notably increase, whether cash or through mortgage loan acquisition. 

Perhaps more of the latter than of the first, since even though good investment options might be increasingly available, there will still be some consumer resistant on immediate cash spending.

 The fact of the matter is that a positive change on the prevalent economic crisis is just ahead of us.  Let us all prepare and be ready for it. 

Let's go out and make some sales.  "Yes, We Can", or as we commonly say in Mexico, "Si Se Puede".

This article is provided by Enrique (Henry) Saldana - Mexico Mortgage Solutions (in Mexico)/Advanced Mortgage Inc. (in the USA) Cell: (984) 116-8528; Cell:  (998) 147-8936 This email address is being protected from spam bots, you need Javascript enabled to view it This email address is being protected from spam bots, you need Javascript enabled to view it   www.mxmortgagesolutions.com You may contact us with any questions you might have with regards to National and Non-Resident /Foreign National Mortgages.

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