Today the Economist is writing about something that I sensed ever since I arrived here. Latin America is the place to be from a financial perspective going forward. "...Latin America will be its engine of growth in the next few years"
Because of a non-existing financial system in many of the countries here, there was nothing that could crash when the western/north American system crashed. The countries are clearly and naturally impacted by the crises, however, indirect. There are less people having money to go on vacation, there are fewer companies able to invest in Latin America and that can buy products from the Latin America companies, however, the safe financial markets are intact.
The financial system here is a discussion in itself. In short, it is not really possible to borrow money from the banks. The role of the banks is to store money, not to functioning as an engine in driving the development of the countries. A few months back I would probably had been very critical about such a system, however, today it is hard to deliver such a criticism.
Looking at the Latin American system in contrast to the western system, the two probably represents two extremes. The best and possibly the new balance will be a system placing itself somehow in between these two extremes. I doubt the Latin system would move towards the middle, thus, the major change naturally will happen in the western system.
To read the entire article, please click here!
A short personal update is that I am in Buenos Aires. I enjoy every day, which typically consists of studies, training and good food. In the weekend I went to Tigre, around 45 min with train from where I live. Tigre is an incredible part of the city. In a sense that trip became a Latin re-connection to the Netherlands, simply because of the extraordinary scenery with the canals and the nature. The day was about hiking and just feeling relaxed again in a non-city context. Beautiful!
Until next time
Emanuel
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