Carlos Slim disregards Congressional subprime bailout bickering - bilingual Spanish/English

In case you were wondering, like me, what the heck is going on with all the financial folderol going on in Washington and Wall Street, Carlos Slim has presented commentary which has a certain rationale (something that has apparently been lacking at the U.S. Treasury Department in recent days).

He has gained a reputation in the international business arena for making a silk purse out of a sow's ear, and is supposedly one of the richest men in the world. He put most of the hysterical psychological arguments aside that pervade the ongoing "bail-out" bickering in the States. Since he is not running for reelection and is familiar with how the financial system works, perhaps he has an objective viewpoint.

Also, he looks at the trends in developing countries. Of course, he encourages investment in them (which BTW, is risky). However, he has been quite successful doing that. Scroll down for English version:


El mexicano Carlos Slim dice que las autoridades estadounidenses actuaron tarde ante la crisis financiera

47 minutos

México, 29 sep (EFE).- El empresario mexicano Carlos Slim afirmó hoy que las autoridades estadounidenses actuaron "un poco tarde" para corregir la crisis financiera que golpea actualmente a EE.UU., aunque confió en que los últimos pasos dados en ese país para enfrentar el problema vayan en la dirección correcta.


A juicio del empresario mexicano, considerado uno de los tres hombres más ricos del mundo, el rescate propuesto por las autoridades estadounidense es correcto.


Esta medida, que hoy mismo fue rechazada por la Cámara Baja de Estados Unidos, busca "estabilizar el sistema financiero mundial, restablecer la confianza del inversionista y evitar carreras en contra de los bancos, sacada de dinero de las instituciones, etcétera, lo que tiene consecuencias muy graves", dijo Slim.


Durante una conferencia de prensa, en la que anunció la creación de una entidad de microcréditos para los pobres en México, señaló que "lo importante, lo grave, lo delicado y lo cuidadoso" de la crisis financiera es determinar "qué repercusiones va a tener en la economía real".


Slim indicó que entre los órganos de control monetario y financiero de EE.UU. hay expertos con la información suficiente para tomar las decisiones adecuadas que contengan la crisis, la "más fuerte" que haya conocido en su vida y "más compleja" que la que sufrió EE.UU. en 1929.


No obstante, el millonario espera que se manejen políticas monetarias y fiscales adecuadas, y que las políticas de la Reserva Federal "no sea restrictiva en exceso".


Además, Slim apuntó que "todavía existe una gran especulación que debería frenarse en lo que son las 'commodities', sobretodo en petróleo y alimentos" "Esa burbuja especulativa es muy delicada porque esos precios repercuten en la economía real", manifestó Slim, para quien la especulación puede ser combatida con mayor regulación de las autoridades.


De otra parte, el empresario destacó que la crisis financiera encuentra a México con indicadores macroeconómicos sólidos y una situación de "fortaleza financiera".


Sin embargo, criticó la política del Banco de México (central) de aumentar gradualmente las tasas de interés de corto plazo, que actualmente se sitúan en el 8,25%.


Esta decisión "induce capitales de corto plazo que solo vienen a tener rendimientos", ya que no se trata de dinero "para inversiones sino simplemente son un capital especulativo que está aquí porque la tasa es mayor a corto plazo" que la de otros países como EE.UU. (2%), donde los bancos centrales las han bajado gradualmente.


Para Slim, sería más recomendable "tener financiamiento en moneda local a mediano y largo plazo a tasas fijas".

En este sentido, aseguró que "en los países desarrollados la crisis la pagan los ahorradores y en los países en desarrollo los consumidores".


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The Mexican Carlos Slim said that U.S. authorities acted late before the financial crisis

47 minutes

Mexico, 29 sep (EFE) .- The Mexican businessman Carlos Slim said today that the U.S. authorities acted "a little late" to correct the financial crisis that hit the U.S. now, but hoped that the latest steps in that country to confront the problem are going in the right direction.


In his judgment, the rescue proposed by the U.S. authorities is correct. The Mexican businessman is considered to be one of the three richest men in the world.

This measure, which was rejected today by the Lower House of the United States, seeks to "stabilize the global financial system, restore investor confidence and (prevent) runs against the banks, (reduce) money taken out of institutions, etc., so you have very serious consequences." said Slim.


During a press conference in which he announced the creation of microcredits for the poor in Mexico, noted that "the important thing, so serious, so delicate and careful" of the financial crisis is to determine "what impact it will have in the real economy."


Slim said that among the bodies of monetary and financial control of the U.S. There are experts with sufficient information to make the right decision containing the crisis, the "strongest" it has known in his life and "more complex" than that suffered U.S. in 1929.


However, the billionaire expected those who manage monetary and fiscal policies are appropriate, and that the policies of the Federal Reserve "is not too restrictive."


In addition, Slim noted that "there is still a big speculation (activity) which should be controlled in 'commodities,' especially in oil and food" "The speculative bubble is very sensitive because these prices affect the real economy," said Slim, for his part, speculation can be fought with increased regulation by the authorities.

In addition, the entrepreneur stressed that the financial crisis in Mexico should find solid macroeconomic indicators and a state of "financial strength."


However, he criticized the policy of the Bank of Mexico (central) to gradually increase interest rates on short-term (loans) which currently stands at 8.25%.


This decision "leads to short-term capital which yields," since there is no question of money "for investment but are merely a speculative capital that is here because the rate is higher in the short term" than other countries such as U.S. (2%), where central banks have gradually lowered (rates).


For Slim, would be more advisable "to have financing in local currency in the medium and long term at fixed rates."

(in other words, Carlos believes adjustable rates stink)

In this regard, he maintained that "in developed countries, the crisis is paid by the people with savings accounts, and in countries that are developing it is paid by the consumers."

(In the United States and England, the crises is also doubled up on the taxpayers)

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Translated to English by Pat Mullen with much appreciated help by Dennis Carmedy

(added parenthetical comments are purely editorial and not the opinions of Sr. Slim)