Mexican Drug War Scaring Off Investors
Further evidence that the Mexican drug war is making progress…in the exact wrong direction:
This is a whole new level of economic disruption, as the drug war begins to chip away at financial institutions. If this kind of thing continues, there’s no limit to how far-reaching the damage could become.
Violence and corruption are just the first symptoms of the disease of drug prohibition. If left untreated, the sickness spreads throughout every social institution, weakening anything it touches.
MONTERREY, Mexico, Nov 11 (Reuters) - Companies in Mexico are scrapping plans to float shares on the stock exchange for fear of raising their profile amid a brutal drug war and a surge in kidnappings, the bourse president said on Tuesday.
Stock exchange President Guillermo Prieto said that aside from market volatility in the past two months due to the global financial crisis, crime was a major issue for firms thinking about initial public offerings (IPOs).
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Going public to raise funds for expansion requires far greater company disclosure and a higher public profile for company executives who go on roadshows to attract investors.
This is a whole new level of economic disruption, as the drug war begins to chip away at financial institutions. If this kind of thing continues, there’s no limit to how far-reaching the damage could become.
Violence and corruption are just the first symptoms of the disease of drug prohibition. If left untreated, the sickness spreads throughout every social institution, weakening anything it touches.
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