Puerto Rico Compass ©

Q3 2008: Collapse in the Financial Markets

Quarterly economic indices analyze the PR economy

The financial system throughout the world is on the brink of disaster. A downturn in the US economy plus an unregulated derivative market related to housing has caused failures in financial markets globally. For many, a future recession is imminent. How did this occur? Business and individuals had a positive outlook on the US economy. A housing bubble emerged and mortgage credits were provided to people who could otherwise not afford the units they bought. This speculative housing bubble started a boom in the construction sector. The bubble finally burst. Banks were less liquid than before. A credit crunch halted the boom and contaminated the rest of the global financial system. The collapse has just started. Financial bailouts by governments have been approved but it is yet too early to determine if they will succeed. Against this background, where is the Puerto Rico economy headed?

Puerto Rico Economic Pulse ©

September 2008: Decision 2008

Analysis of Economic Platforms of the political parties in PR

An important decision will take place next month in Puerto Rico. The upcoming general election could end gridlock between the legislative and executive powers. But will this be enough to restore growth in a weak economy? A US economic downturn is also affecting our economy. The island faces a saturated housing market, high unemployment, and low levels of growth. The principal challenge for the next 4 years will be the recovery of the island economy. Are all contenders’ proposals strong enough to restore growth in the long run? Or are they just proposing weak policies to mitigate short run problems while they are elected? This issue reviews the economic platforms of the four political parties in this election. Find out if their proposals address growth of our economy.