Spillover! Now it's even hitting Mexico!

Not long ago, experts and pundits were suggesting that the subprime meltdown was contained. It's now widely accepted that the subprime meltdown has reduced the number of qualified and/or potential buyers, which means fewer sales. While this isn't the sole cause of the stalled housing market, it's definitely a contributing factor.

And now it's affecting Mexico! That's quite the ripple effect. From Bloomberg today: "The U.S. housing slump is squeezing Mexican migrant workers from Los Angeles to New York, where permits for new home construction are down 20 percent this year, according to the Census Bureau. That's reducing the pace of money transfers, the second-biggest source of dollars in Mexico after oil exports, and turning the peso into a laggard among Latin American currencies."

The full story: http://www.bloomberg.com/apps/news?pid=20601109&sid=aUg9vSpGzzWg&refer=home