Ramadasa International Real Estate Consultants

PANAMA : GREAT PLACE TO INVEST

2009-03-27T12:08:00.001-04:00

PANAMA is a great destination, either to retire, invest or just visit. It is one of the most beautiful tourist havens with its lovely beaches and islands, where you can swim in the Pacific Ocean in the morning and scuba dive in the Atlantic Ocean in the afternoon.

Beautiful Beaches of Panama City:

A favorite pastime of the locals and visitors to Panama is relaxing on the Caribbean and Pacific Beaches. Both coasts have beautiful beaches with crystal clear waters, white sand, coral reefs and coconut palm trees. Some of the most famous Panama beaches and beach communities are Punta Chame, Gorgona, Coronado, Rio Mar, San Carlos, El Palmar, Corona, Sea Cliff, Santa Clara, Playa Blanca, Farallon and Juan Hombron. Rio Mar is a popular year-round surfing beach. Punta Chame is great for windsurfing during certain months of the year.

Panama's beaches are one of the most spectacular attributes of this country. With coasts along the Atlantic and the Pacific, tourists have a lot of choices in beeches! Perhaps it is due to this reason that many visitors to Panama who come to enjoy the white sand and blue waters, end up investing in beachfront property. You can choose locations that are perfect for surfing, sailing, fishing or simply to hang out. There are beaches that have very little populations and others that are in developed areas. Panama beach real estate is much more affordable than average prices in competing markets such as Mexico, Costa Rica, Dominican Republic and Belize, but as demands rise for Panama beach real estate, developers are starting to construct properties near beaches and tapping the undeveloped areas. Basically, there are still plenty of opportunities for investing in Panama real estate and its beaches.

People who want to invest in Panama Beach Real Estate get a wide variety of choices in homes, townhomes, condos and more. Consequently, there is a huge demand for its real estate options. Other than the luxurious white sands that blanket Panama City Beach, here are a few more reasons why Panama's beaches are drawing real estate investors from all around:

1. Plenty of Beach Activities

The 20+ miles of white sandy beaches allow for a picturesque setting that rivals anything found in the Caribbean. However, beyond the view you can find access to a wide array of beach activities including swimming, boating, fishing, water parks, wave running, sailboats, parasailing, and more.

2. Great community of people

Many guests to Panama are surprised by the high standard of hospitality they find in Panama. However, the truth is that the workers and staff are merely being themselves by providing the standard level of Southern hospitality found here. What this means to you is that whether you are a vacationer or interested in living here, you will benefit by being around such an excellent community. This warm outpouring of kindness makes this beautiful place more attractive for visitors.

3. Growth and Expansion of Panama City Beach

Many other beach resort areas suffer because of limitations in their land size or restrictions. The good news in Panama City Beach real estate is that PCB is always growing and expanding. This means more attractions, more guests and more fun for everyone.

Beyond this basic list of benefits, you will be able to find a number of other benefits as well. The key thing to remember is that you won't be disappointed if you are considering investing in Panama Beach Real Estate.

About the Author:
As the Administrative Manager of Panama Opportunities, Inc., Maria Amelia Pezzotti is offering the widest variety of Panama real estate, condos and commercial property listings for sale and investment. Panama Opportunities, Inc. is a licensed real estate company in Panama City, Republic of Panama. It is a modern real estate enterprise specialized in giving their clients the best assessment for their investment goals for city, mountain and beach properties in the Republic of Panama. Their core focus is offering exclusive projects that provide complete amenities to their customers from around the world.

--
Nancy E. Griffin
Old Cape Sotheby's International
Certified International Property Specialist (CIPS)
Orleans, Cape Cod, MA 02653
ABR, FIABCI, CIPS, TRC
508.255-4456 fax
508.726.7914 cell
nancy@oldcape.com
nancyegriffin@yahoo.com

Fwd: Google Alert - Republic of Panama, Land Laws

2009-03-05T07:13:00.001-05:00

---------- Forwarded message ----------
From: Google Alerts <googlealerts-noreply@google.com>
Date: Thu, Mar 5, 2009 at 3:44 AM
Subject: Google Alert - Republic of Panama, Land Laws
To: nancyegriffin@yahoo.com

Google News Alert for: Republic of Panama, Land Laws

US-Cuban Politics: Playing the Guantánamo Card
Scoop.co.nz (press release) - New Zealand
In addition to these provisions of a number of international laws, ... He makes the case that Cuba intentionally did not sell the land to the US in the ...

Google Blogs Alert for: Republic of Panama, Land Laws

Panama Guide - New Highway To Colon Costs $6.3 Million Per Kilometer
Panama Guide - Thousands of English articles and links. ... The following are groups, clubs, and organizations in the Republic of Panama open to membership by English speaking members of the expatriate community. ... Before these questions, Minister Colamarco justified the addenda for $50.9 million dollars that he asked for, due to the muddy land among other geological problems in the areas along the route where the highway is being built. (more) ...
Panama Guide - http://www.panama-guide.com/

Revamping U.S.-Cuban Politics: Playing the Guantánamo Card in a ...
By admin
The results of similar historical actions, like the reversion of the Panama Canal to Panama, and the Suez Canal to Egypt, demonstrate the diplomatic advantages of returning Guantánamo to Cuba, due to the goodwill it would engender. ... Demonstrably, it is up to the U.S. to comply with the law of nations and standards of international law. As of now, Havana, the weaker nation by far, can merely repeatedly demand the reversion of its land back to Cuba. ...
Council on Hemispheric Affairs - http://www.coha.org/

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Massachusetts: Best 'New Economy' State

2008-11-24T16:05:00.001-05:00

Massachusetts: Best 'New Economy' State

by Emily Maltby
Monday, November 24, 2008provided by

A study ranking state economies correlates entrepreneurship with adaptability - even during the toughest times.

Massachusetts is the state best positioned for growth when the current economic turmoil recedes, according to the recently released 2008 State New Economy Index.

Washington, Maryland, Delaware, New Jersey, Connecticut, Virginia, California, New York and Colorado rounded out the top ten.

The study, issued by the nonpartisan think tank Information Technology & Innovation Foundation (ITIF), measures how effectively states operate in order to compete nationally and globally. It notes that states should be focused on whether their economies are well positioned for robust growth in the next decade, pointing out that innovation is central to state economic success.

"We had to go back a full year to get data, but I do think these results will, to some extent, be able to predict how each state will do in the current economic turmoil," said Dr. Rob Atkinson, president of the foundation.

"In recessions, there are higher levels of entrepreneurship because people who are laid off will use that opportunity to start a business," he said. "We won't be in this predicament forever. States that foster risk-taking and treat this time as an opportunity will be in a better position when they emerge - they'll be growing, instead of replacing the investments they slashed."

Funded by entrepreneurship boosters the Ewing Marion Kauffman Foundation, ITIF considers 29 factors in determining which states are the most - and least - "New Economy." These indicators included, among other things, start-up activity, education, venture capital investment, IPOs, patents and alternative-energy.

Those data points were then grouped into five meta categories that the ITIF says embodies the New Economy: knowledge jobs, globalization, transformation into a digital economy, technological innovation capacity and economic dynamism.

"The index is a composite of variables," said Atkinson. "But economic dynamism, which measures factors such as the number of fast-growing gazelle companies and value of IPOs, is more important than, say, globalization or a digital economy at influencing the new economy leadership."

Based on past observation, states that foster startups, particularly fast-track tech ventures, are also those that adapt best in economic downturns and emerge from them with higher standards of living, according to the the survey, which was also released in 1999, 2002 and 2007.

Utah, Massachusetts, Colorado, Georgia and New York placed at the top of the ITIF's list in the economic dynamism category, while Alabama, West Virginia, Hawaii, South Carolina and Kentucky ranked lowest.

Mississippi, West Virginia, Arkansas, Alabama, Wyoming, Kentucky, South Dakota, Oklahoma, Iowa and Louisiana were seen by the foundation as the least prepared to rejuvinate themselves.

--
Nancy E. Griffin
Old Cape Sotheby's International
Certified International Property Specialist
Orleans, Cape Cod, MA 02653
ABR, FIABCI, CIPS, TRC
508.255-4456 fax
508.726.7914 cell
nancy@oldcape.com
nancyegriffin@yahoo.com

Hilton in Panama

2008-10-11T14:18:00.001-04:00

Hilton Hotels Corporation Announces Major Expansion Plans to Quadruple its Caribbean and Latin America Portfolio

Company Appoints New Development Team to Spearhead Addition of 150 Hotels & Resorts

Last update: 6:01 a.m. EDT Sept. 30, 2008

BEVERLY HILLS, Calif., Sep 30, 2008 (BUSINESS WIRE) -- Hilton Hotels Corporation today announces expansion plans to quadruple its presence in the Caribbean and Latin America by adding 150 new hotels to the portfolio over the next five years. The company also reveals a new development structure, made up of six dedicated staff, to lead the efforts in achieving this objective. This news underscores the company's stated goal to add 1,000 hotels to its international portfolio in ten years.

Steve Goldman, president, global development & real estate, for Hilton Hotels Corporation, explained, "Expanding our global platform is a strategic priority for Hilton. We are focusing on accelerating the growth of our international management and franchise business by securing strategic development agreements and employing resources in international markets. This is the most exciting time in the company's history and there are tremendous opportunities which we are acting on to accomplish our ambitious plans."

Hilton Hotels Corporation currently has 42 properties in the Caribbean and Latin America development pipeline and has identified a number of strategic markets in gateway cities and resort destinations for further growth of selected Hilton Family brands. With an existing portfolio of 51 hotels throughout the Caribbean and Latin America, this expansion will bring the company's total presence in the regions to more than 200 properties.

The team, led by Ted Middleton, senior vice president, development, The Americas, for Hilton Hotels Corporation, will include:

-- Gregory Rockett, vice president development, Caribbean and Southeast U.S.

-- George Massa, senior director of development, Mexico

-- Luis Alvarado, director of development, Mexico

-- Simon Suarez, chief development representative, Central America

-- Cristiano GonAalves, vice president development, South America

-- Paula Muniz, director of development, South America

Daniel Hughes, senior vice president of operations, Caribbean, Mexico, and Latin America, for Hilton Hotels Corporation, commented, "This is a momentous time for Hilton as we announce efforts to quadruple our portfolio to 200 hotels and resorts. Our success will be a result of the perfect combination of exciting brands, a dedicated professional development team, and targeted markets with great potential for growth."

Caribbean

The Caribbean development efforts will be led by Gregory Rockett, vice president, development, Caribbean and Southeast U.S. The company currently has 13 hotels in the region and anticipates bringing an additional 17 hotels to the Caribbean over the next five years.

The goal of Hilton's development efforts in the Caribbean will be to add focused-service hotels, such as Hilton Garden Inn and Hampton Inn, to commercial centers such as San Juan, Trinidad, and Nassau. Another area of growth will be developing luxury branded hotels and residences in high-end mixed use developments in markets such as Turks & Caicos, the Lesser Antilles, and The Bahamas.

Hilton Hotels Corporation has already announced eight properties under development in the Caribbean: Conrad Bimini Bay Resort & Casino in The Bahamas; Hilton Bonaire; Hilton St. Maarten; Doubletree by Hilton San Juan in Puerto Rico; Hampton Inn & Suites by Hilton Providenciales; and the planned conversion of three existing LXR resorts in Puerto Rico.

Mexico

With two developers dedicated to development in Mexico, the company is set for significant growth in the country. The existing portfolio of 19 properties in Mexico spans most of the Hilton Family of brands. George Massa, sr. director of development, Mexico, and Luis Alvarado, director of development, Mexico, will focus future development efforts in all regions of the country by adding 60 hotels in the next five years.

Growth is expected throughout Mexico's border cities, as well as the central and southern regions, covering all 31 states and its Federal District. The Hilton Family of Brands will expand in prime resort areas, capital and large industrial cities, as well as develop focused-service brands, such as Hampton by Hilton and Homewood Suites by Hilton, in border locations, interior commercial cities, and resort areas.

The company has 20 hotels in the Mexico pipeline including Homewood Suites by Hilton hotels in Puebla and Monterrey, as well as Hampton by Hilton properties in Guadalajara, Ciudad Victoria, Centro Historico Ciudad de Mexico, Toluca, Queretaro, Los Cabos, Cancun, Guadalajara, and Tulum.

Central America

Simon Suarez, chief development representative, Central America, will be responsible for expansion in Central America and adding 23 properties to the current collection of seven hotels. One component of this plan is to grow by forging several multi-unit development alliances concentrating on the Hilton Garden Inn and Hampton by Hilton focused-service brands.

The company's growth is expected in all of the region's capitals, as well as secondary markets such as Liberia, Costa Rica; David, Panama; and Leon, Nicaragua. This will be complemented by active pursuit of opportunities in the principal resort destinations of Guanacaste, Costa Rica; Antigua, Guatemala; Atlantic coast of Honduras and Belize; and Pacific coast of El Salvador, Nicaragua, and Panama.

Hilton Hotels Corporation recently debuted three hotels and resorts in Costa Rica and has six approved deals in the Central America pipeline. Opened in January 2008, the company welcomed three hotels to Costa Rica: Hilton Papagayo Costa Rica Resort & Spa; Doubletree Resort by Hilton Costa Rica -- Puntarenas; and Doubletree Cariari by Hilton San Jose. Six recently approved transactions include: Conrad Los Micos in Tela Bay, Honduras; Hilton San Jose, Costa Rica; Hilton Panama; Doubletree by Hilton Panama; Embassy Suites by Hilton San Jose, Costa Rica; Embassy Suites by Hilton Panama City, Panama; and Hilton Garden Inn Liberia Airport, Costa Rica which opens later this year.

South America

The newest additions to the development team will support expansion in South America, where the company currently has 12 properties. Cristiano GonAalves, vice president development, South America and Paula Muniz, director of development, South America, will be based in Hilton's South America development headquarters in SAGBPo Paulo, Brazil as they lead the company in achieving 50 new hotels throughout South America over the next five years.

Due to the size and strength of the Brazilian economy, Brazil will be a key focus of Hilton's development activities in the region. Hilton's growth plans include not only Brazil's largest cities, SAGBPo Paulo and Rio de Janeiro, but also a number of secondary cities such as Brasilia, Belo Horizonte, Porto Alegre, Manaus, Recife, and Goiania, among others. Additionally, Hilton will focus on developing properties in gateway and strategic markets such as Buenos Aires, Argentina; Santiago, Chile; Lima, Peru; Caracas, Venezuela; and Bogota, Colombia.

The company currently has seven signed projects in South America: Hilton Bariloche, Hilton Iguazu Resort and Hilton Ushuaia in Argentina; Hilton Salvador da Bahia, Brazil; Hilton Bogota, Colombia; Doubletree Guest Suites by Hilton, Paracas, Peru; and Embassy Suites by Hilton Valencia, Venezuela.

"Hilton Hotels Corporation is placing significant emphasis on growth in the Caribbean and Latin America, supported by a development team made up of six of some of the industry's most qualified professionals," said Ted Middleton, senior vice president, development, the Americas, for Hilton Hotels Corporation. "We have set rigorous goals and have no doubt we have the best team in the industry working to achieve them."

In addition to the Hilton brand, the company will focus on introducing and expanding the Hilton Family of brands in these strategic markets as each brand delivers unique features to fit each market need (Hilton(R), Conrad(R) Hotels & Resorts, Doubletree by Hilton(R), Embassy Suites by Hilton(R), Hampton by Hilton(R), Hilton Garden Inn(R), Hilton Grand Vacations(TM), Homewood Suites by Hilton(R) and The Waldorf=Astoria Collection(R).

Initially, development focus has been placed on the Hilton Garden Inn and Doubletree by Hilton brands for mid-market and conversion opportunities respectively. This year, the company introduced the first Doubletree by Hilton in Central America and later this year, will bring the first Hilton Garden Inn property to the region. The company continues to develop its luxury strategy with the planned addition of selected LXR hotels into its portfolio, as well as expansion of the Waldorf=Astoria Collection and Conrad Hotels & Resorts

--
Nancy E. Griffin
Old Cape Sotheby's International
Certified International Property Specialist
Orleans, Cape Cod, MA 02653
ABR, FIABCI, CIPS, TRC
508.255-4456 fax
508.726.7914 cell
nancy@oldcape.com
nancyegriffin@yahoo.com

From Panama Sam's Blog

2008-10-11T14:05:00.001-04:00

World Economic Forum ranks Panama second in Latin America

Panama has moved ahead of Mexico this year to claim second only to Chile in the World Economic Forum ranking of overall index of competitiveness. Panama still comes out on top of Costa Rica for the 2nd year in a row. Although Panama received excellent scores in property rights, financial markets, infrastructure and macroeconomic stability it rates near the bottom on quality of education (108), judicial independence (115) and rigidity in the labor regime (126), among others. When you consider that 134 countries were evaluated, Panamas ranking at 58 put it well into the lower half of the world pack. To be ranked second in Latin America speaks volumes of the problems all of Latin America continues to face.

The three areas that Panama ranks low on are the very subjects I usually rail against in my blog. Poor education, corrupt judicial system and difficult labor laws.

Mortgage News Letter

2008-07-14T21:43:00.001-04:00

Powerful reasons to buy now:

Rates are near historical lows, and expected to rise. For example, at 6.5%, the payment on $300,000 is about $1,900. When rates go to 6.875% it will be about $75 per month higher, or more than $25,000 over the life of the loan. Buying now, when rates are low, can save you a lot of money.

Many home currently for sale are great values. Compare buying now for $300,000 versus buying the same house in the future for $310,000. Not only are you paying an extra $10,000 for the house, you are also paying an extra $60 per month which means that over the life of the loan you will actually pay a total of over $21,000 more by waiting. Buying now, while prices are low, can save you a lot of money.

The power of leveraging. Real estate provides many unique investment advantages, such as a multitude of tax breaks, a way to diversify your investments, and benefits to quality of life by having an asset that can be lived in or rented. Another advantage is the power of leveraging. For example, if you buy a house of $300,000 and put 5% down ($15,000) and the house appreciates by just 1% ($3,000), you will realize a 20% return on your investment. That is because you only invest a fraction of the value of the asset, but enjoy the appreciation on the entire asset. Buying now, using the power of leveraging, can make you a lot of money.

--
Nancy E. Griffin
Kinlin Grover GMAC Real Estate
Certified International Property Specialist
193 Cranberry Highway
Orleans, Cape Cod, MA 02653
ABR, FIABCI, CIPS, TNR
508.632-0576 fax
508.726.7914 cell

DUBAI PROPERTIES... CONTACT US

2008-07-13T13:53:00.001-04:00

7 VERY EXCLUSIVE PROPERTIES IN DUBAI MARINA. A STUNNING INTERNATIONAL BENCHMARK, BENTLEY BEST REWARD ARCHITECTURE. AWARD WINNING LIFESTYLE. MORE THAN 11 000 SQUARE FEET/EACH WITH THE SPECTACULAR VIEW FROM EVERY ANGLE OVERLOOKING THE PALM JUMEIRAH.

Europeans set sights on Florida

2008-07-11T00:15:00.001-04:00

Europeans Set Sights on Florida

by Liz Zimmerman

The United States was voted as the most stable and secure country for foreign real estate investment by 56 percent of foreign investors surveyed, according to the 2007 Association of Foreign Investors in Real Estate (AFIRE) Foreign Investment Survey. The decreasing value of the U.S. dollar is encouraging foreigners to consider America when looking for personal vacation property or profitable real estate investments. This investment of stronger currencies could inject new life into states such as Florida, where desirable vacation property is plentiful but the property market is struggling.

AFIRE's survey ranked the top five global cities for foreign investment and the top two slots are filled by American cities: New York City and Washington, D.C. New York rose from second place and Washington, D.C., came up from its fourth place finish in 2006. The previous year's top city, London, accepted the proverbial bronze medal. The United States is gaining ground as an international real estate investment option.

European buyers have become interested in Florida real estate for inexpensive property

In line with this trend, foreign investment in Florida is flourishing. While 18 percent of real estate agents nationwide reported brokering at least one home sales transaction with international clients in 2006, 65 percent of Floridian real estate agents reported having done so during the same time period, according to the National Association of Realtors (NAR) Profile of International Home Buying Activity.

"Florida is always being spoken of very highly [in Europe]. People love to be here. They come out for vacations two or three times a year," Laszlo Kovacs, CEO of Florida Investment Marketing Inc., said.

The largest percentage of international buyers in the state in 2005 came from the United Kingdom, according to the 2005 NAR Profile of International Home Buyers in Florida. British real estate buyers made up 33.3 percent of all international property transactions in the state, Western European countries made up 21.2 percent and Eastern European countries made up 3 percent.

So, why is Florida real estate so attractive to European buyers? The low value of the U.S. dollar, combined with Florida's generally affordable real estate values, means Europeans can often find amazing deals on second homes and investment properties.

As recently as 2002 the euro and the dollar were equal in value, but recently the dollar has plummeted to an exchange rate of $1.58/€1.00. A home in Orlando at the median price of $230,000 would only cost a European buyer €144,808. The discount is better still for investors from the United Kingdom; that same Orlando house would cost a British buyer merely £115,409.

The median price paid by foreign real estate investors for a single family home in Florida was $299,000, according to the NAR Profile of International Home Buyers in Florida. This amount is significantly higher than the median price of all single family homes sold in Florida, which was $196,200. 58 percent of international buyers used a mortgage to finance their purchase, while 36 percent paid with cash.

Kovacs, who works primarily with clients in Eastern Europe, said he has "absolutely" seen an increase in the number of Europeans seeking to buy real estate in Florida. "The currency exchange has been in their favor," he said. "It's easier for them to buy something over here. They love the credit system that we have over here. They love financing. And they just love, generally, to deal with the United States." He estimated that Florida Investment Marketing Inc. has conducted 150 real estate transactions in the past year with buyers from Romania, Czech Republic, Slovakia, Ukraine, Russia and Hungary. These European buyers are aware of the state of the U.S. housing market, he said, and realize that now is a good time to hold on totheir investment rather than try to resell it quickly. The majority purchased property either as a personal vacation home (38 percent) or as rental property for investment (37 percent), according to the NAR Profile of International Home Buyers in Florida.

Will increasing European investment have a positive effect on the Florida housing market? It's possible, but difficult to say. Although Florida's values continue to fall, the number of sales made in the state has actually increased every month this year, and this has many feeling optimistic, according to The South Florida Sun-Sentinel.

"I'm expecting a lot more [European] investors to come; a lot more second home buyers," Kovacs said.

Since Europeans are buying in greater numbers because of the deals available to them, this could potentially reinvigorate Florida's housing market with "imported" money and lend some forward momentum. But only time will tell for sure.

In the age of globalization

2008-07-05T20:18:00.001-04:00

The news and information that matters to real estate, small business and alternative investors.

Wednesday, July 2, 2008

Global Real Estate Becoming More Transparent And Accessible

Posted by: Eric Ames @ 12:38 PM

0 Comments | Links to this post

In the age of globalization, the world's markets are becoming ever more available to foreign investors, and while real estate has traditionally been one of the tougher markets to enter and navigate in foreign countries, it is getting ever easier. Nearly 50 percent of all countries improved their real estate transparency, according to the Jones Lang LaSalle Index from 2006 to 2008, with eight of those countries moving up a full tier. The only country to fall in the index was Venezuela. The Jones Lang LaSalle index ranks the transparency of countries based on five items: performance measurement, market fundamentals, listed vehicles, legal and regulatory environment and the transaction process.

While many countries still have a ways to go before investors can truly feel confident about investing there, this is a great sign that the world is recognizing the need for foreign investment. For investors, it is also great to see the number of investment opportunities continue to rise. Many people are fearful about investing in foreign markets, so out of fear they neglect them. Investors who take this stance are missing out on literally a world of opportunity. Know that while there are additional risks involved with foreign investment, there is also a significant reward variable to consider in addition to the main factor which should compel investors: diversification. Those investors who have 100 percent of their investments in U.S. funds, companies and other U.S. vehicles should seriously re-evaluate their portfolio.

Buying physical property in a foreign country can be rewarding, but it is not for everyone. That being said, if foreign real estate isn't your cup of tea, then consider at minimum investing into some foreign funds, which could even include a foreign REIT (real estate investment trust). For the more adventurous, though, buying property in an emerging market, or even a developed foreign market, can be exciting and profitable.

If you are considering buying property abroad, the best piece of advice I can give you is to do your homework. Fully evaluate all the potential risk factors and then weigh them against the potential rewards; if an investment makes sense, then do it. Depending on the market you are entering you may also need to take additional precautions. If you are investing in an emerging market, I would recommend that you don't invest more money than you can lose. Emerging markets and their governments and markets are not always stable, so things can go south quickly--but they also can get better quickly as well. To be safe, though, take extra precaution, especially if you are a new investor. Also, I always recommend seeking trusted local legal counsel (make sure to get referrals from other investors who have been successful), regardless of whether or not your agent tells you that you need one. Things don't work in other countries like they do in the U.S., so be open-minded and patient (especially in Latin American countries), but that doesn't mean let people walk all over you. Just realize that things are going to work differently and take a little longer in most places compared to the U.S.

Lastly, I want to point out that, especially in emerging markets, it is easy to get excited by promises of incredible returns and other such things, but there is a reason the developers are offering these returns: There is a lot of risk. Many developments that start never see completion for various reasons. Until you fully understand the market and how things work there, it is wise to only buy what you can see and touch.

Global Guru article

2008-06-24T17:47:00.001-04:00

Myth: The BRIC (Brazil, Russia, India, and China) countries stand on the verge of overtaking the old global powers of the United States, Japan and Europe in terms of global economic influence.
Reality: Although they boast impressive rates of growth, and have been a much better place to make money than the U.S. stock market, the BRIC countries are still economic minnows. If you look at them in real (and not in overly flattering purchasing parity power) terms, the BRIC countries are best compared with large U.S. states in terms of economic heft. China and its population of 1.3 billion generate as much economic wealth as do the 60 million inhabitants of California and Texas. India's economy is the size of Florida. Brazil's is the size of New York. And Russia is smaller than Ohio and Illinois combined.
3. Myth: Russia's kleptocracy and gangster politics have crippled Russia's economy, leaving it in tatters. Investors in Russia have suffered from the government's willy-nilly investment and expropriation policies. That's why Warren Buffett, Jim Rogers, and George Soros refuse to touch the place
Reality: Russia presents a conundrum for the Western good guys. Yes, it is a kleptocracy and a handful of Western investors and Russian companies have been shafted in a high profile way. But thanks largely to the soaring price of oil, the Russian economy has exploded, growing at 9.5% in Q4 of last year and 8.5% in Q1 of 2008. That means that it is nipping at the heels of India, and is hot on the trails of China in the economic growth sweepstakes. Among the BRICs, Russia has been by far the best investment during the past decade or so, with investors clocking 60x returns since the Russian market bottomed in October 1998. Russia is also one of the top markets in the world this year. And here's a factoid that warms the Russian heart: Moscow now boasts a larger number of billionaires than New York or London.

--
Nancy E. Griffin
Kinlin Grover GMAC Real Estate
Certified International Property Specialist
193 Cranberry Highway
Orleans, Cape Cod, MA 02653
ABR, FIABCI, CIPS, TNR
508.632-0576 fax
508.726.7914 cell

email nancy@ramadasa.com if you are interested in this property...

2008-06-20T22:31:00.001-04:00

7 Ranchettes on 72.12± acs.
Jones Loop Rd. / Charlotte Co. FL

* Located in the SE corner of Jones Loop Road

* Preliminary siteplan shows seven 10+ acre estate lots, perfect for equestrian activities

* Just minutes from I-75 Exit 161 / Charlotte County Enterprise Zone / Charlotte County Airport
* The Wilder Companies are developing The Loop, a mixed use project just a few miles west of I-75. Also nearby are a Super Wal-Mart and the Charlotte branch campus of Edison Community College.

* Currently zoned AG - Entire parcel is improved pasture

$360,000 each

Costa Rica

2008-06-20T22:11:00.001-04:00

19 Jun

Spanish Companies to Invest $1 Billion in Costa Rica

RIU's Proposed Layout for a Hotel in Guanacaste, Costa Rica.

Three of Spain's biggest hotel chains have announced plans to expand in Costa Rica promising to bring more than $1 billion dollars in development. The news comes as no surprise to the ever so popular tourist destination as the number of European tourists is increasing each year as they flock to the country's gorgeous beaches and biologically diverse rain forests. Spanish tourists, in particular, are even more common and the inclusion of these well-known Spanish brands is expected to coax more to make the cross-Atlantic voyage.

This year Costa Rica could receive around 45,000 additional Spanish tourists due to a dramatic increase in direct flights from Madrid, Spain to San Jose, Costa Rica. The Spanish based airline, Air Comet, has been around for 10 years and flies direct from Madrid to other Latin American cities such as Lima, Buenos Aries, and even Havana, Cuba. The airline has announced plans to purchase 12 new airplanes within the year in order to increase Costa Rica travel and tourism from Spain.

"The company believes in the tourism potential towards Costa Rica," Manager for Air Comet Costa Rica, Luis Brenes, said. "In fact, we have invested to promote the country in European and Spanish markets with an initial result of 240 passengers."

The airline's plans will not only help bring more Spanish and European tourists to Costa Rica but it also provides Costa Ricans the opportunity to explore the old continent. Air Comet's tickets will start at $500 and will operate every Monday, Wednesday, and Saturday, however, Air Comet isn't the only popular Spanish Company that has faith in Costa Rica; Sirenis and RIU Hotels & Resorts, as well as the real estate Space and Nature group (NVESA) also have a strong interest in the up and coming country.

RIU Hotels & Resorts is a large Spanish hotel chain founded in 1953 that plans to build three hotels in the northern Guanacaste province of Costa Rica. The company began with a small 80 bed hotel on the largest Spanish island in the Mediterranean Sea, Majorca. It has now become the second largest hotel chain in Spain and boasts 45,000 beds in 110 hotels in 18 countries. RIU employs 18,000 people and serves 2.1 million clients each year.

The first establishment in Costa Rica will be built by RIU itself on Playa Matapalo on Costa Rica's North Pacific Coast. The hotel is only 20.5 miles from the Liberia International Airport and will consist of a 6-story main building surrounded by 41.86 square yards of lush gardens. RIU plans to open Hotel RIU Guanacaste in the winter of 2009.

The Spanish chain Sirenis Hotels & Resorts has also announced plans to begin construction this year for their first Costa Rica hotel project. Sirenis is also a family-run international business that got it's start on Ibiza an Island off the coast of Spain. The company has 35 years of experience and also has resorts in the Dominican Republic, Mexico, and Cuba. Sirenis has announced that their newest project will take place in the Gulf of Papagayo in Northern Costa Rica.

Construction will begin on the Guanacaste Resort this year and will carry the Grand Sirenis Hotels & Resorts brand meaning it will offer the highest level of luxury all-inclusive service. The resort will house 350 bedrooms and will be located only 29 kilometers from the Liberia International Airport. No completion date has been determined yet, however, it is rumored that Sirenis will begin a Costa Rica real estate project in the Papagayo area shortly after the hotel construction has been completed.

Sirenis isn't the only Spanish company interested in both residential and tourist accommodations, a trend made popular by the Canadian Four Seasons brand. The Spanish born real estate group Space and Nature group (NVESA) also has sights set on a similar plan. The large real estate enterprise will build four hotels within the country and one residential real estate project.

It is safe to say that there's no doubt that the number of Spanish tourists in the country will only increase as construction and development of these new projects is completed. Costa Rica's National Tourism Chamber (Canatur) announced that in 2007 an estimated 265,000 tourists visited the country from Europe and about 57,000 were from Spain. If Spaniards aren't yet the official "number one" European tourists yet, they soon will be thanks to Spanish hotel, airline, and real estate expansion in the year to come.

Source

--
Nancy E. Griffin
Kinlin Grover GMAC Real Estate
Certified International Property Specialist
193 Cranberry Highway
Orleans, Cape Cod, MA 02653
ABR, FIABCI, CIPS, TNR
508.632-0576 fax
508.726.7914 cell

Reading what we have been experiencing in Black and White...

2008-06-04T15:52:00.001-04:00

Industrial investment down 55%, DJ says

09:56 | 04.06.08

By Jennifer Rigby

The total value of industrial investment deals completed in the first quarter of 2008 is down by 55% on last year's figures, according to research by Drivers Jonas.

However, Drivers Jonas says that investor interest for industrial assets – which are now back to mid 2005 yields – is returning.

Anthony Duggan, head of DJ Research, said: 'Our research shows that industrial is now transacting at 150 bp higher than this time last year and IPD industrial initial yields are back at mid 2005 levels. We are seeing renewed investor interest at these levels - investors are looking at sheds in the new "old world" where property fundamentals (income return and asset management potential) are again key drivers of performance.'

Marketing periods

Yields are moving out and sales are taking longer to complete, DJ reported. Marketing periods are now on average six months.

John Rodgers, head of DJ Industrial Investment, says: 'We are seeing good interest for industrial and the right assets are still attracting a strong following. What are the right assets? Fundamentals such as proximity to market, affluent population and tight land supply/planning regime are key.

'For example, data shows that the supply of industrial land in London has fallen 35% over the last 10 years. This should mean more stable land values and less competition for occupiers - a good base to work your outperformance. It is also important to bear in mind new trends such as internet shopping, Green development and green transport as these will continue to create fresh occupier demand.'

Recommended investment

DJ also marks out the areas it recommends for investors in 2008, such as trading estates near major regeneration areas such as Ebsfleet and large, sustainable distribution units near major transport nodes such as airport and sea ports.

Duggan said: 'So where should you buy a distribution warehouse? Whilst every opportunity should be closely scrutinised, if the covenant risks are correctly priced, the following locations remain Drivers Jonas' favoured choices – eastern M25, lower M1, Midlands, Southampton and Avonmouth and the M60.'

Cuba and Panama

2008-06-04T13:40:00.001-04:00

Panama Promote Friendly Relations with Cuba
2008-05-05
Prensa Latina

Havana. Cuba and Panama are promoting their friendly relations full of solidarity by holding the 14th inter-parliamentary conference between both nations.

Gathered at the Havana-based Convention Center, Cuban and Panamanian deputies discuss issues of common interests with the objective to promote mutual cooperation.

This meeting is characterized by the will to strengthen our links, said President of the Cuban Parliament International Relations Committee, Ramon Pez Ferro.

According to the agenda, participants are also expected to discuss current international situation, especially in Latin America and the Caribbean, as well as great challenges faced by this region and the world at large.

Other issues to be discussed include an analysis of the threats of a world economic crisis, climate change, biofuels and the processes of Latin American integration.

We have come to talk frankly, said President of the Panama-Cuba Parliamentary Friendship Group, Carlos Alvarado, who highlighted the importance of holding this kind of events for over a decade.

Alvarado said to have a great affection for the Cuban people and great admiration for the achievements of the Revolution.

Interesting information from a Panama author regarding HOWARD AIR FORCE BASE

2008-05-19T21:21:00.001-04:00

London & Regional finally begin work on Howard AFB

The developer is working on the project's master plan, and expects to start construction in July.

The development of the former Howard Air Force Base is expected to begin in earnest in two months or so as the master plan for the project starts to become a reality.

More than 300 people are already working at the site, according to developer London & Regional Panama, including engineers, lawyers, accountants and architects developing the master plan as well as technicians conducting field studies for the environmental impact assessments required for the project.

In July, the construction of infrastructure is expected to start, boosting the number of workers to more than 1,000.

L&R Panama General Manager Henry Kardonski said that a total of $60 million will be invested in the site in the next two years. Much of that money will be spent on infrastructure, such as improving roads and installing utilities such as telecommunications, water and power lines.

The former military installation is being heavily promoted both in Panama and abroad as a commercial center that will offer companies locating there substantial tax incentives as well as access to modern facilities, including an airport.

Kardonski said four companies -- a multinational, a processing plant and two logistics firms -- have already signed letters of intent with L&R to locate in Howard. The manager declined to name them because the final details of the agreements are still being worked out. These companies will join Dell and Singapore Aerospace Technologies, the former base's two current occupants.

Kardonski said that L&R has contacted 150 other companies, and many have shown more than a passing interest in relocating to Howard. Many of them are from the U.S., Europe and Venezuela, and cite the tax breaks as the prime reason for considering a move to the base.

The 1,400 hectare site will not only house businesses, but a residential project, a resort and golf course and amenities such as a shopping center and restaurants.

"We're going to have a complete city with first-world standards," said Edgar Hernández, the project's director of infrastructure.

While concerns have been raised about other major projects, such as the expansion of the Panama Canal, making it hard for L&R to obtain laborers or materials for the project, Hernández said that long-term deals are being worked out to ensure the project will not be hampered.

London & Regional finally begin work on Howard AFB

Many of us had become a bit skeptical about the London & Regional Panama Pacifico project as much time has passed without any news, but this article from La Prensa gives us hope that it is finally underway. This is an extremely important project for Panama as the company has huge plans for the 1400 hectare property it has committed to develop into commercial and residential areas. As their website proclaims, "this is the largest master planned project in the world". I am a little concerned that their General Manager has committed to spend only $60 million over the next two years. We spent more than that in Valle Escondido! It becomes clear from this article that they are installing infrastructure and are still looking for the developers who will come in and do the heavy lifting. Lets hope they find them!

The developer is working on the project's master plan, and expects to start construction in July.

The development of the former Howard Air Force Base is expected to begin in earnest in two months or so as the master plan for the project starts to become a reality.

In July, the construction of infrastructure is expected to start, boosting the number of workers to more than 1,000.

The 1,400 hectare site will not only house businesses, but a residential project, a resort and golf course and amenities such as a shopping center and restaurants.

"We're going to have a complete city with first-world standards," said Edgar Hernández, the project's director of infrastructure.

article on Casco Viejo and Old World Charm...

2008-05-19T09:50:00.001-04:00

Panama City was once (and many would say still to this day) a crossroads of the New World. Immigrants flocked from all over the world to start new lives on the isthmus, building it up as a cultural think-tank of business, language, and trade. It was in this period for Panama that outside architectural influence was at its height, and ignorance for the past, present and future at an all time low.

So it is with much concern that today's existing French-Caribbean architecture with ornate wood carvings and Spanish-colonial homes with rustic tiled roofs are being torn down regularly in San Fransicso, Marbella, and Bella Vista (among other districts) and being replaced by large, out-of-scale structures: a process which will change the character of the neighborhoods forever.

Avenida Central, as a specific example, which runs through Caledonia and into Bella Vista (before leading into Calle 50) is one that bisects a marginal neighborhood. It is flanked though, by some of the most stunning once-prospering pieces of real estate in Panama City. The current sales office for Tucan Country Club, a white palace of columns and intricate moldings: an absolute gem on the eye. Or Arcos de Bella Vista; a beautiful Mediterranean-style guesthouse/mansion.

Some might argue that the demolition of similar buildings is a direct result of developer greed, considering more money can be made more rapidly in building and selling high-end ocean-view pre-construction condos. But in response, it would be sensible to look at other historic cities and towns in the region to gain not only an appreciation for the restoration and preservation of a culture, but to cash in on the undoubtable gold mine they're so blindly sitting atop.

Cartegena for example, the historic destination known for its pastel colors and delicate European facades, is the most expensive and (arguably) most sustainable real estate market in Columbia.

Examples like Old San Juan (Puerto Rico), Grenada (Nicaragua), and Antigua (Guatemala) are wonderful leaders in the field of historic real estate preservation in Central America. And while that's not to say Panama shows no concern over the subject, there is clearly a lot of room for improvement. Maybe the greatest challenge is revitalizing such old buildings while keeping them competitive in the modern marketplace: meaning efficient for commercial and residential occupation.

As the entire nation has become caught in the whirlwind of Panama real estate, one of glitzy towers and ocean view lots, one of billboards with gringos sipping coffee from their Pottery Barn terraza, there has been a significant (perhaps unconscious) sense of tunnel vision through which smart growth, environmental sustainability and cultural authenticity in the Republic's capital are being overlooked. And it is this generic and monotonous process, of ignoring such safeguards, that threatens seriously the economic and social diversity of Panama as a whole.

Casco Viejo, the UNESCO Herritage site of Panama City is perhaps the only destination in the Republic with strict, in-force historic real estate preservation laws: meaning neighborhoods where foreigners and locals alike are purchasing property in which to live or work. Unarguably, it's the most thriving.

"Protecting historic properties makes a community more beautiful and more salable," points out Chris Leporini of Realtor Magazine Online. "When you preserve historic properties, you're not just saving a building or plot of land, you're protecting part of your community's character and giving buyers a reason to want to live there."

Retaining historical architectural appeal is a proven magnet for tourism throughout the world. Panama has historically made a name for itself by setting the bar and showing foresight into the future. Some might then opt to characterize the new wave of real estate towers as groundbreaking or even visionary.

But in a world of budding technology and global real estate appeal, with condos on the moon perhaps closer than we think, what will truly make this developing city a place everyone wants to live? What will truly make Panama City a unique travel and investment destination? Government officials and City leaders should reconsider their plan for long term authentic and culturally sustainable growth: an effort to protect the very components that drew now-Panamanians here in the first place.

--
Nancy E. Griffin
Kinlin Grover GMAC Real Estate
Certified International Property Specialist
193 Cranberry Highway
Orleans, Cape Cod, MA 02653
ABR, FIABCI, CIPS, TNR
508.632-0576 fax
508.726.7914 cell

Investors Find More Fertile Opportunities Overseas

2008-05-07T22:04:00.001-04:00

With the U.S. Housing Bubble Bursting, Investors Find More Fertile Opportunities Overseas

By Jason Simpkins
Associate Editor

Just a few months ago, the world's biggest property fund manager, ING Real Estate (ING), announced plans to spend another $700 million on Chinese real estate. That was on top of the $350 million raised for residential development in China in 2006.

Now, investment firms and sovereign wealth funds around the world are scrambling to catch up.

Story continues below…

Sign up right now, and we'll send you an important new report for free: "The Three Best Investments in Asia."

"On the one hand you see part of the world slowing down, triggered by the credit crunch," ING Real Estate Chairman and Chief Executive, told Reuters. "And then you see another part of the world -China, Japan, and even Australia -where there are lots of opportunities."

India has been one of the primary beneficiaries of foreign real estate investment so far. With tight lending practices and a thriving market, a rapid influx of foreign cash -much of it retreating from the U.S. market -has begun to pour in.

Lehman Brothers Holdings Inc. (LEH), for instance, has already deployed about $2 billion in India and is reportedly preparing to raise its first India fund this year.

"It will be for real estate, and a companion to our Global Real Estate Fund," Tarun Jotwani, chairman and chief executive of Lehman Brothers India, told the Mint paper.

The fund "will be large enough to give us significant firepower in a sector that is experiencing a capital crunch but is small enough and flexible enough to allow us to build a top quality portfolio," Jotwani added.

Citigroup Inc. (C) and Morgan Stanley (MS) have also invested in Indian real estate and many analysts believe that Goldman Sachs Group Inc. (GS) and HSBC Holdings PLC (HBC) will soon join them.

Most recently, Philippines-based Ayala Corporation and its affiliate, Arch Capital Management, announced plans to invest $100 million in the Indian property market over the next two years.

India isn't the only country enjoying fresh inflows for foreign cash either. In fact, Vietnam currently attracts more overseas investment than India does.

For Vietnam, 2007 was a banner year for foreign direct investment (FDI), which brought a record $20.3 billion into the country.

In 2005, FDI was recorded at $ 5.8 billion, and in 2006 it reached $10.2 billion, before virtually doubling in 2007. Over the last 20 years Vietnam has amassed $98 billion in FDI for over 9,500 projects, and a great deal of that money has been finding its way into the real estate market, Arabian Business reported.

Last week, Qatar Investment Authority bought a 27% stake in Dragon Capital, a Vietnamese property fund, which will buy into offices and serviced apartments in Ho Chi Min City, Bloomberg News reported.

In February that same Qatar Investment Authority bought a 15% stake in an Indian office complex being built at the Bandra Kurla complex in Mumbai.

The fund has $60 billion to play with and one of its managers said earlier this week that more emerging market real estate investment is in the works.

"We are focusing on prime cities in India, China, Singapore, Korea, Vietnam and Malaysia, cities around the world where there is strong GDP growth and fundamental unmet demand for high quality real estate," Navid Chamdia, head of real estate at Qatar Investment, told Bloomberg at a wealth funds conference in Abu Dhabi. "About 40% of our real-estate investments will be in Asia."

In addition to taking a harder look at Asia the fund may start looking for some bargains in the U.S. market.

"We anticipate several opportunities in the U.S. for mezzanine financing, and individual distressed assets," Chamdia said. "We are looking at a number of these opportunities with several partners."

Sovereign wealth funds like these will be fixtures in real estate for years to come. Fueled by a commodities boom and large currency reserves Morgan Stanley estimates sovereign fund assets could reach a total of $12 trillion by 2015.

News and Related Story Links:

Bloomberg:
Qatar's Fund to Invest in Asian Property, U.S. Assets

Arabian Business:
Record US$ 20.3 billion FDI drives Vietnam real estate

LiveMint.com:
Battered in the US, Lehman bets on India

Money Morning:
ING Plows an Additional $700 Million Into Chinese Real Estate

Profits Are Up 1,056.2% for This Wisconsin Company

Commodities are on a tear - and so is mining equipment. This "pick-and-shovel" company has already sold out two-thirds of its equipment for 2008. Australia, Canada and China are battling for orders. And the Street hasn't figured it out yet. All the details are in our Power Plays Report.

Why Panama?

2008-05-04T15:20:00.001-04:00

Why Panama?

The Republic of Panama may just prove to be the perfect place that you have been searching for to make your terrific real estate investment in a cash cow rental property… that very special second home for you and yours, or your secret place for wiling away your retirement days.

But, why should you really seriously consider Panama?
First, please allow me to start with the "NO" Reasons –

No snow, no sleet, no ice (unless it's in your margarita glass), no cold weather – not ever. Sure Panama's mountains have year round spring-like weather and maybe it is even cool, at times, in the mountains of Panama – BUT NEVER, NEVER EVER COLD. What a concept!
No hurricanes! To the best of my knowledge a serious hurricane has never struck the Isthmus of Panama. Many, not all but many, serious hurricanes initially form off the coast of Africa and gain strength as they cross the Atlantic Ocean. I know a lot about hurricanes because I have hunkered down and rode out a number of them in Florida – Frances, Jeanne & Wilma just to mention a few that immediately come to mind. When you take a look a world map you will see that Panama is ideally positioned so as to NOT be in the path of any serious hurricanes.
No earthquakes, well maybe I can't say there are never earthquakes, but the last recorded earthquake in Panama City was in 1882. One of the reasons Panama was selected as the location for digging the Panama Canal was because this area is definitely NOT hurricane prone.
No real estate taxes! On December 22, 2007 the Prensa newspaper reported that the Panama real estate tax exoneration was extended. The Consejo de Gabinette has approved an extension of the 20 year property tax exemption for apartments and houses whose building permits are issued before December 31, 2009. Sweet!!! How would you like to pay NO property taxes for 20 years? Start packing your bags and come to Panama!
No Panama taxes on any foreign source income, capital gains and/or any of your interest income.
No Military. After the United States Military extracted Senor Noriega from Panama in 1989, Panama abolished its military. When you visit Panama I am sure that you will notice a number of uniformed hombres who are dressed a lot like soldiers, (they look just like soldiers to me) but technically they are part of the police force. It is my understanding that one of the main objectives of Panama's police force is to not only protect the people but make certain that the good guys stay in power in this democracy.

But enough with all this negativity & the NO's – Please allow me to share with you some yes statements… not necessarily in the order of importance:

Yes, Panama currency is the US Dollar. If you are an American it will sure seem strange when you hear a Panamanian refer to the currency as a Balboa, but the faces on the bills are of Washington, Lincoln & Jackson. When you visit Panama you should try to only bring US currency of $20.00 bills or less. It is difficult to cash any bill of more than a $20.00, because the Panamanians will suspect the bill is counterfeit… and don't even think about trying to use travelers checks – no way! Since Panama's money is the US Dollar, if you are an American, you do not have to worry about any exchange gains or losses.
Yes, there is a real estate mega boom going on right now in Panama. I've been involved in the real estate industry for a whole lot of years – How about 38 years to be exact – Ouch! It is amazing that I don't look any older! I have never seen anything at all like what is going on right now in Panama… & I believe this is because there has never, never ever been anything comparable to what is going on right now in Panama… anywhere else in the world has anytime ever. Wow! Don't wait until it is too late for you, and you miss out and then have to say coulda, woulda, shoulda!
Yes, the cost of living is much, much less here than it is in North America or Europe. In the grocery stores, which believe or not are very similar to what you're like it to find in the United States – the prices are such that I believe you will save about 50 cents on the dollar.
Yes, Panama's a beautiful country, but you need to know where to go. I have read somewhere that in Costa Rica you'll see 20 tourists watching 1 bird, but in Panama you're most likely to witness 1 tourist observing 20 birds. And when it comes to birds, there is no other bird like Panama's resplendent quetzal? Come see this bird!
Yes, North American and Europeans are more than welcome in Panama. The people of Panama are not in awe of foreigners, most likely because of the construction and maintenance of Panama Canal which brought hundreds of thousands of different nationalities to Panama. And, also tens of thousands of United States citizens have been in Panama for more than one hundred years. It is estimated that about 19,000 US Citizens now live in Panama. I believe that Panama is very much "Americanized". Some Panamanians play baseball instead of soccer and many of the Nort American franchises are here in Panama.
Yes, health care here in Panama is first rate. Panama City's Hospital Punta Pacifica is affiliated with the prestigious John Hopkins Medicine International. For more information go to www.hospitalpuntapacifica.com.
Yes, you can create a Panamanian foundation to shelter and protect your Assets.
Yes, if you want to retire, Panama certainly wants you. To be a Pensionado (retiree) you only need to be at least 18 years of age and be able to document monthly income of $500.00 per month or $600.00 if you have a dependent.

As a Pensionado, by law, repeat by law, you will receive discounts on just about everything:

50% discount on recreation, movies, hotel stays & sporting events
30% discount on public transportation
25% discount on domestic airline flights, most restaurants bills, electric, telephone & water bills
20% discount on doctor's visits – also much cheaper in the 1st place
15% discount on dental work
10% discount on prescription drugs

Are you traveling to Panama soon? If you are a United States citizen you must have a visa when you enter Panama. This visa form costs you $5.00 and you can receive your visa from the airline you use to fly to Panama or pick one up at the Tocumen airport before you clear thru immigration. This visa allows you to stay in Panama for ninety (90) days.

Other ways for you to legally remain in Panama include:

Self-Economic Solvency Visa
Immediate Passport Program
Business Investor Visa
Reforestation Visa

The Top 11 Things To Do
When You are in Panama City, Panama

Panama Canal – A partial transit of the Canal is an excellent way to experience the 8th wonder of the world. There are tours that take you by boat departing from the Amador Causeway and sailing under the Bridge of the Americas and the newer Centennial Bridge. You also will transit through the Miraflores Locks. The partial transit of the Panama Canal ends at the Gamboa Rain Forest Resort, and then you will be returned by bus to the Amador Causeway.
Amador Causewaywas created with the massive amount of dirt that was removed during the building of the Panama Canal. The Amador Causeway is located in the Bay of Panama and it links 4 islands. This is a great place to stroll, jog, bike or enjoy one of the many fine restaurants with wonderful views of the Panama City Skyline and the large ocean faring vessels waiting for their turn to transit the Canal.
Panama Viejo – This is the original site of the City of Panama. You can take a self guided walking tour through the ruins of Panama Viejo. The signage is in English and Spanish. The Panama Viejo area was initially settled in the year on 1519 – almost 500 years ago! In 1671 an English pirate named Sir Henry Morgan totally destroyed the city – only these ruins remain and the City of Panama was then relocated to the area that is now known as San Felipe or Casco Viejo. When you visit the Panama Viejo area you will observe that not too far away, in Costa Del Este, skyscrapers of more than 50 stories are now under construction. What a striking contrast of the old and the new!
Casco Viejo – The architecture is incredible – similar to the French quarter in New Orleans, Louisiana. Take another walking tour through the balconied, narrow streets with buildings mixed with Spanish and French heritage from days gone by. Don't miss visiting the Panama Canal Museum which is located in Cathedral Plaza, Las Bovedas, but most of the exhibits are only in Spanish.
Gamboa Rainforest Resort is not too far away from Panama City. When you visit the Gamboa Rainforest Resort make sure that you take the boat tour to Monkey Island. Actually what is now known as Monkey Island was once really a mountain top. When digging the Panama Canal the Americans created the man made lake known as Gatun. When this area was flooded, the mountain tops became islands in Gatun Lake. This boat tour is only about an hour long and it takes you out into the Panama Canal. During your boat trip you will just about be guaranteed to witness large container ships transiting the Canal, crocodiles resting on the shores, and an assortment of feathered friends flying in the sky. Oh yea, when you arrive at Monkey Island don't be surprised if the monkeys want to jump in to your boat!
Taboga Island is known as the flower island. You can take a ferry from the Amador Causeway to Taboga Island for only $10.00 round trip. When on Taboga Island you can just relax and enjoy the views, swim at one of the beaches or hike the trails. The best way for me to describe Taboga Island is that there really isn't much to do on Taboga Island, but, if you want, you can take as long as you want to do it – nothing. For more information, when in Panama call 314-1730.
Watch a folklore show with colorful typical costumes and traditional dances. Shows are offered by the Tinajas Restaurant, the Al Tambor de la Alegria Restaurant on the Amador Causeway and Mi Pueblito.
When you are feeling lucky visit the Las Vegas style casinos which are located in different hotels and shopping centers scattered throughout the city of Panama.
Speaking of shopping centers – I am certain that you will find that the Multiplaza Pacific Mall, Multicentro Mall and Albrook Mall will rival any of the malls that you are familiar with in the United States and Canada, but you will also find that the prices here in Panama are usually much, much less. Another shopping area that you will want to visit for great deals is Los Pueblos which is located at the edge of the city, not too far away from the Tocumen Airport. Los Pueblos is a massive shopping complex which is known as a bargain hunter's paradise, thanks to a wide selection of discount stores with household goods, clothing and other items with prices so low you will not be able to say NO!
Fine Restaurants – Sample a different restaurant each & every night. Some Panama restaurant critics have rated EURASIA, MADAME CHANG and ANGEL as the very best. ANGEL happens to be located on the ever popular Via Argentina and this street is lined with many other small cafes and bars – so you may want to stroll along Via Argentina again and again. For more casual dining try CREPES AND WAFFLES located in the Marbella district or any of the restaurant locations in the TAMBURELLI Restaurant chain.
It really is not possible to only list 11 things to do in Panama City. You may also want to visit the Miraflores Locks to watch the gigantic cargo ships transit the Canal. Watch the horse races at President Remon Race Track. Take a day trip to El Valle, the San Blas Islands or Contadora Island. Take a leisurely walk in Parque Omar (Panama's version of Central Park in New York City) or Metropolitan Park which is a Rainforest within the city limits.

Why Panama?

2008-05-04T14:25:00.001-04:00

Why Panama?

But, why should you really seriously consider Panama?
First, please allow me to start with the "NO" Reasons –

No snow, no sleet, no ice (unless it's in your margarita glass), no cold weather – not ever. Sure Panama's mountains have year round spring-like weather and maybe it is even cool, at times, in the mountains of Panama – BUT NEVER, NEVER EVER COLD. What a concept!
No hurricanes! To the best of my knowledge a serious hurricane has never struck the Isthmus of Panama. Many, not all but many, serious hurricanes initially form off the coast of Africa and gain strength as they cross the Atlantic Ocean. I know a lot about hurricanes because I have hunkered down and rode out a number of them in Florida – Frances, Jeanne & Wilma just to mention a few that immediately come to mind. When you take a look a world map you will see that Panama is ideally positioned so as to NOT be in the path of any serious hurricanes.
No earthquakes, well maybe I can't say there are never earthquakes, but the last recorded earthquake in Panama City was in 1882. One of the reasons Panama was selected as the location for digging the Panama Canal was because this area is definitely NOT hurricane prone.
No real estate taxes! On December 22, 2007 the Prensa newspaper reported that the Panama real estate tax exoneration was extended. The Consejo de Gabinette has approved an extension of the 20 year property tax exemption for apartments and houses whose building permits are issued before December 31, 2009. Sweet!!! How would you like to pay NO property taxes for 20 years? Start packing your bags and come to Panama!
No Panama taxes on any foreign source income, capital gains and/or any of your interest income.
No Military. After the United States Military extracted Senor Noriega from Panama in 1989, Panama abolished its military. When you visit Panama I am sure that you will notice a number of uniformed hombres who are dressed a lot like soldiers, (they look just like soldiers to me) but technically they are part of the police force. It is my understanding that one of the main objectives of Panama's police force is to not only protect the people but make certain that the good guys stay in power in this democracy.

But enough with all this negativity & the NO's – Please allow me to share with you some yes statements… not necessarily in the order of importance:

Yes, Panama currency is the US Dollar. If you are an American it will sure seem strange when you hear a Panamanian refer to the currency as a Balboa, but the faces on the bills are of Washington, Lincoln & Jackson. When you visit Panama you should try to only bring US currency of $20.00 bills or less. It is difficult to cash any bill of more than a $20.00, because the Panamanians will suspect the bill is counterfeit… and don't even think about trying to use travelers checks – no way! Since Panama's money is the US Dollar, if you are an American, you do not have to worry about any exchange gains or losses.
Yes, there is a real estate mega boom going on right now in Panama. I've been involved in the real estate industry for a whole lot of years – How about 38 years to be exact – Ouch! It is amazing that I don't look any older! I have never seen anything at all like what is going on right now in Panama… & I believe this is because there has never, never ever been anything comparable to what is going on right now in Panama… anywhere else in the world has anytime ever. Wow! Don't wait until it is too late for you, and you miss out and then have to say coulda, woulda, shoulda!
Yes, the cost of living is much, much less here than it is in North America or Europe. In the grocery stores, which believe or not are very similar to what you're like it to find in the United States – the prices are such that I believe you will save about 50 cents on the dollar.
Yes, Panama's a beautiful country, but you need to know where to go. I have read somewhere that in Costa Rica you'll see 20 tourists watching 1 bird, but in Panama you're most likely to witness 1 tourist observing 20 birds. And when it comes to birds, there is no other bird like Panama's resplendent quetzal? Come see this bird!
Yes, North American and Europeans are more than welcome in Panama. The people of Panama are not in awe of foreigners, most likely because of the construction and maintenance of Panama Canal which brought hundreds of thousands of different nationalities to Panama. And, also tens of thousands of United States citizens have been in Panama for more than one hundred years. It is estimated that about 19,000 US Citizens now live in Panama. I believe that Panama is very much "Americanized". Some Panamanians play baseball instead of soccer and many of the Nort American franchises are here in Panama.
Yes, health care here in Panama is first rate. Panama City's Hospital Punta Pacifica is affiliated with the prestigious John Hopkins Medicine International. For more information go to www.hospitalpuntapacifica.com.
Yes, you can create a Panamanian foundation to shelter and protect your Assets.
Yes, if you want to retire, Panama certainly wants you. To be a Pensionado (retiree) you only need to be at least 18 years of age and be able to document monthly income of $500.00 per month or $600.00 if you have a dependent.

As a Pensionado, by law, repeat by law, you will receive discounts on just about everything:

50% discount on recreation, movies, hotel stays & sporting events
30% discount on public transportation
25% discount on domestic airline flights, most restaurants bills, electric, telephone & water bills
20% discount on doctor's visits – also much cheaper in the 1st place
15% discount on dental work
10% discount on prescription drugs

Other ways for you to legally remain in Panama include:

Self-Economic Solvency Visa
Immediate Passport Program
Business Investor Visa
Reforestation Visa

The Top 11 Things To Do
When You are in Panama City, Panama

Panama Canal – A partial transit of the Canal is an excellent way to experience the 8th wonder of the world. There are tours that take you by boat departing from the Amador Causeway and sailing under the Bridge of the Americas and the newer Centennial Bridge. You also will transit through the Miraflores Locks. The partial transit of the Panama Canal ends at the Gamboa Rain Forest Resort, and then you will be returned by bus to the Amador Causeway.
Amador Causewaywas created with the massive amount of dirt that was removed during the building of the Panama Canal. The Amador Causeway is located in the Bay of Panama and it links 4 islands. This is a great place to stroll, jog, bike or enjoy one of the many fine restaurants with wonderful views of the Panama City Skyline and the large ocean faring vessels waiting for their turn to transit the Canal.
Panama Viejo – This is the original site of the City of Panama. You can take a self guided walking tour through the ruins of Panama Viejo. The signage is in English and Spanish. The Panama Viejo area was initially settled in the year on 1519 – almost 500 years ago! In 1671 an English pirate named Sir Henry Morgan totally destroyed the city – only these ruins remain and the City of Panama was then relocated to the area that is now known as San Felipe or Casco Viejo. When you visit the Panama Viejo area you will observe that not too far away, in Costa Del Este, skyscrapers of more than 50 stories are now under construction. What a striking contrast of the old and the new!
Casco Viejo – The architecture is incredible – similar to the French quarter in New Orleans, Louisiana. Take another walking tour through the balconied, narrow streets with buildings mixed with Spanish and French heritage from days gone by. Don't miss visiting the Panama Canal Museum which is located in Cathedral Plaza, Las Bovedas, but most of the exhibits are only in Spanish.
Gamboa Rainforest Resort is not too far away from Panama City. When you visit the Gamboa Rainforest Resort make sure that you take the boat tour to Monkey Island. Actually what is now known as Monkey Island was once really a mountain top. When digging the Panama Canal the Americans created the man made lake known as Gatun. When this area was flooded, the mountain tops became islands in Gatun Lake. This boat tour is only about an hour long and it takes you out into the Panama Canal. During your boat trip you will just about be guaranteed to witness large container ships transiting the Canal, crocodiles resting on the shores, and an assortment of feathered friends flying in the sky. Oh yea, when you arrive at Monkey Island don't be surprised if the monkeys want to jump in to your boat!
Taboga Island is known as the flower island. You can take a ferry from the Amador Causeway to Taboga Island for only $10.00 round trip. When on Taboga Island you can just relax and enjoy the views, swim at one of the beaches or hike the trails. The best way for me to describe Taboga Island is that there really isn't much to do on Taboga Island, but, if you want, you can take as long as you want to do it – nothing. For more information, when in Panama call 314-1730.
Watch a folklore show with colorful typical costumes and traditional dances. Shows are offered by the Tinajas Restaurant, the Al Tambor de la Alegria Restaurant on the Amador Causeway and Mi Pueblito.
When you are feeling lucky visit the Las Vegas style casinos which are located in different hotels and shopping centers scattered throughout the city of Panama.
Speaking of shopping centers – I am certain that you will find that the Multiplaza Pacific Mall, Multicentro Mall and Albrook Mall will rival any of the malls that you are familiar with in the United States and Canada, but you will also find that the prices here in Panama are usually much, much less. Another shopping area that you will want to visit for great deals is Los Pueblos which is located at the edge of the city, not too far away from the Tocumen Airport. Los Pueblos is a massive shopping complex which is known as a bargain hunter's paradise, thanks to a wide selection of discount stores with household goods, clothing and other items with prices so low you will not be able to say NO!
Fine Restaurants – Sample a different restaurant each & every night. Some Panama restaurant critics have rated EURASIA, MADAME CHANG and ANGEL as the very best. ANGEL happens to be located on the ever popular Via Argentina and this street is lined with many other small cafes and bars – so you may want to stroll along Via Argentina again and again. For more casual dining try CREPES AND WAFFLES located in the Marbella district or any of the restaurant locations in the TAMBURELLI Restaurant chain.
It really is not possible to only list 11 things to do in Panama City. You may also want to visit the Miraflores Locks to watch the gigantic cargo ships transit the Canal. Watch the horse races at President Remon Race Track. Take a day trip to El Valle, the San Blas Islands or Contadora Island. Take a leisurely walk in Parque Omar (Panama's version of Central Park in New York City) or Metropolitan Park which is a Rainforest within the city limits.

Seven rate cuts since the fall...

2008-05-01T11:19:00.001-04:00

Thursday, May 1st, 2008

With Seven Rate Cuts Since Fall, Could the Fed Be Exporting Stagflation to Europe?

By Jennifer Yousfi
And William Patalon III
Money Morning Editors

The U.S. Federal Reserve reduced the benchmark U.S. lending rate by a quarter point - from 2.25% to 2% - yesterday (Wednesday), and then hinted that it will take a break from one of its most-aggressive rate-cutting campaigns in decades.

"The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time and to mitigate risks to economic activity," the policymaking Federal Open Market Committee (FOMC) said in the statement announcing the interest-rate move. Central bank policymakers also said that "recent information indicates that economic activity remains weak" before going on to say "uncertainty about the inflation outlook remains high" and noted that the Fed would continue to monitor both economic growth and inflation closely.

The Fed launched this rate-cutting campaign on Sept. 18, not long after it became clear that the U.S. subprime mortgage meltdown was having a global impact. The reason: Banks in Germany and France had - for whatever reason - invested in debt obligations that were backed by subprime mortgages. And when the subprime market blew up, so did the holdings at those foreign banks.

Before the crisis broke, and even in its early weeks, Fed Chairman Ben S. Bernanke and other U.S. leaders repeatedly maintained that the problem was limited in scope and that no real "crisis" would evolve. Today, an estimated $312 billion in write-downs and credit losses later, the central bank has slashed interest rates seven times and helped engineer the bailout of The Bear Stearns Cos. (BSC) by JPMorgan Chase & Co. (JPM).

Yesterday marked the seventh time since mid-September that the U.S. central bank reduced the Federal Funds rate, the interest rate that banks with excess reserves charge one another for overnight loans. The Fed Funds rate also serves as the benchmark for the Prime Rate, the base rate that commercial banks use to price loans to their best and most-credit-worthy customers. Wachovia Corp. (WB) and other lenders pared their Prime Rates by a similar quarter point - reaching 5% - shortly after yesterday's Fed action.

Stocks soared in early trading. But then the markets shed those gains following the announcement of the expected quarter-point cut and ended mostly flat. The blue-chip Dow Jones Industrial Average Index was down 11.81 points (-0.09%), to trade at 12,820.13. The tech-laden Nasdaq Composite Index shed 13.30 points (-0.55%), to reach 2,412.80. And the broader Standard & Poor's 500 Index decreased 5.35 points (-0.38%), to hit 1,385.59.

"The markets pretty much knew what was coming and what we wanted to see were the changes in the statement," said Joel Naroff, president and chief economist of Naroff Economic Advisors, in a note to clients. "There were some, but the Fed still left itself plenty of wriggle room to do what it pleased."

Central bank policymakers have slashed the Fed Funds rate by a total of 3.25 percentage points from its starting point of 5.25% level in mid-September, and the comments that accompanied yesterday's announcement seemed to indicate the committee was content to step back and allow rate reductions to work their way through the U.S. economy.

The committee also reduced the lesser-known Discount rate (the rate charged at the Fed's discount window) by a quarter point to 2.25%.

Fed Walks the High Wire Again

2008-04-30T11:00:00.001-04:00

Wednesday, April 30th, 2008

With a Rate Decision, GDP Report Due Today, the Fed Walks the High Wire Again

By Jennifer Yousfi
And William Patalon III
Money Morning Editors

If U.S. Federal Reserve policymakers make the expected quarter-point rate cut at the end of their meeting today (Wednesday), the impact will be felt well beyond U.S. borders.

Indeed, the interest-rate reduction could set in motion a series of diverse global events that will impact such seemingly unrelated areas as European inflation, global food prices, the U.S. dollar, American exports, and the already chilly relationship between the European Central Bank (ECB) and the government of France.

For any of this to happen, however, the Fed first has to act. Most observers believe the U.S. central bank's policymaking Federal Open Market Committee (FOMC) will reduce the Federal Funds rate for the seventh time since mid-September, dropping the benchmark borrowing cost from 2.25% to 2.0%.

According to many experts, the Fed's timing will be excellent. Economists have increasingly come to believe that the U.S. economy is probably in a recession already, although most await more-certain evidence before actually making the pronouncement.

Some of that evidence could come out today. U.S. stocks traded in a narrow range yesterday (Tuesday) as the market awaited two important announcements: The advance estimate of U.S. Gross Domestic Product (GDP) and the central bank's rate-reduction decision - both due out today.

"Another large batch of companies has reported quarterly earnings results, but overall, they have failed to move the needle that much as the market is in a wait-and-see mode ahead of the GDP data and the FOMC decision on Wednesday," Patrick O'Hare at Briefing.com Inc. told the AFP news service.

There are some strong dissenters.

"There is no reason why the Fed should be cutting rates right now," Richard Yamarone, director of economic research at Argus Research Corp., told MarketWatch.com.

What Tales GDP Doth Tell

Although GDP is a lagging indicator, analysts anxiously await the report since it will demonstrate whether the U.S. economy is as weak as many believe. According to a Reuters' poll, first quarter GDP is expected to clock in at a sluggish 0.2%, down from a 0.6% growth rate in the fourth quarter. Reuters developed the consensus estimate by averaging 89 predictions, which ranged from contraction of 0.8% to growth of 1.5%.

Most analysts, including those at UBS AG (UBS) and Lehman Brothers Holdings Inc. (LEH), felt March's surprisingly strong durable goods orders and an increase in inventories would tip the balance in favor of slim growth in the first quarter. However, analysts did note that inventory increase could signal weakness ahead, especially if not supported by the accompanying increase in sales needed to create the "sell through" that would keep additional inventories from piling up.

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"A $5 billion accumulation of [inventories] would add almost a full percentage point to GDP growth and, in our forecast, constitutes the difference between a positive and a negative result," RBS Greenwich Capital said in a note to clients.

A positive GDP estimate, however slight, could mean the U.S. economy is poised to skirt a true recession. The textbook definition of a recession is two consecutive quarters of negative GDP growth.

But the weak GDP estimate, which will be announced early this morning, could prove the justification the FOMC needs to recommend another rate reduction this afternoon.

CME Group Inc.'s (CME) Chicago Board of Trade futures are pricing in an 82% chance that the FOMC will recommend the U.S. Federal Reserve make a quarter point cut, bringing its key interest rate down to 2.0%. When the Ben S. Bernanke-led central bank started its rate-cutting campaign last year, the Fed Funds rate stood at 5.75%.

And if policymakers do order the rate-reduction, most analysts believe it will be the last one for awhile; those same CBOT futures indicate a 71% chance that the Fed will hold the line on interest rates when the committee meets again in June.

"The direction of Fed policy hangs in the balance, and there are people like me that hope the central bank quits sooner rather then later," Jack A. Ablin, chief investment officer at Harris Private Bank, told The New York Times.

But here's where the global wild cards come into play.

When Everything's Wild

With its ambitious rate-cutting strategy, the Fed has stoked domestic inflationary pressures and helped accelerate the decline of an already-sinking dollar.

Officially, the U.S. inflation rate stands at about 4%, though many experts - including Money Morning Contributing Editor Martin Hutchinson - believe the actual U.S. inflation rate is much higher. In fact, anyone who studies the sharp increases in energy, food prices, commodities, healthcare, and a university-level education may find it tough to argue that prices aren't headed higher.

Even with a bit of a rebound, of late, the dollar is down more than 7.3% against the euro in the past six months, 12.35% in the past 12 months and nearly 28% in the last 54 months. The greenback is down substantially against other key currencies, too, and that's helped fuel a massive run-up in the cost of energy and food-related imports - all highly inflationary for U.S. consumers.

At the same time, however, the cheap dollar has made U.S. exports very competitive abroad. Indeed, for foreign buyers of such big-ticket products as Boeing Co. (BA) jetliners, the plunging dollar has served as a global blue-light special. Boeing's bureaucratic arch-rival, Airbus SAS, hasn't been able to compete, and a week ago was actually forced to raise prices on two of its commercial jets - citing rising steel prices and a falling dollar as the two key causes.

On Sunday, French Economy Minister Christine Lagarde said the gap between the U.S. and Eurozone interest rates was way too large, and called for a change in interest-rate policies - either by the Fed or the European Central Bank (ECB).

The U.S. Fed has been slashing rates to jump-start economic growth while also keeping a horrid housing market from putting the entire economy to sleep. The ECB, by contrast, has kept rates high to combat inflation - even though that strategy is pushing Europe into an undesirable slowdown.

"We are in a delicate situation where we have, on the one hand, an American Federal (Reserve) which has a policy of very low rates and a European Central Bank which has maintained high interest rates," Lagarde told LCI Television and RTL Radio, the global wire service Reuters reported. "The differential in interest between the two, it seems to me, is a little too big at the moment."

Paris has long been a vocal critic of what French President Nicolas Sarkozy has termed the ECB's overly narrow focus on fighting inflation. But Sarkozy and Co. have been criticized by both Germany and the ECB for attempting to meddle in the business of a supposedly "independent" central bank.

With Eurozone inflation running at about 3.6% - its highest rate since the measure for that portion of the European market began in 1997, the European Central Bank (ECB) has left its key refinancing interest rate unchanged at 4.0%, despite some very definite signs that Eurozone growth is slowing.

The European Commission, the executive branch of the European Union, said Monday that Eurozone growth would continue to erode throughout 2008 and 2009. The EC said the combined economic growth rate for the 15 countries that use the euro would slow to 1.7% this year and 1.5% next year. The EC has cut its growth projections twice since November.

But here's perhaps the biggest wild card: Inflation will climb to 3.2% this year, more than it previously forecast and well outside the group's comfort zone of just under 2%. And it's not expected to throttle back until late next year. For that reason, the commission remains focused on inflation, which it considers "the main problem that we have to face in the short term."

According to the EC, "the recent sharp rises in food and energy prices have depressed households' purchasing power and consumer spending in the last quarter of 2007 and are expected to continue to do so during most of 2008," the commission said.

That may have to change. And here's why.

Another cut in the U.S. Fed Funds rate will cause the dollar to skid and inflation to escalate still more, giving U.S. exporters an even bigger advantage over European rivals.

Dollar-denominated commodities such as oil, metals and food will continue to escalate in price. Initially, it will appear only as if U.S. exporters are just gaining an ever-larger advantage over their counterparts in Europe. European corporate profits - and stock prices - will start to feel the squeeze.

Sarkozy and Co. will step up their lobbying efforts against the EC and ECB - pushing for the rate reductions needed to restore parity with Europe's economic rival across the Atlantic - making the French president even less popular.

In time, the EC and ECB will realize that this is not a temporary competitive disadvantage, but instead is a full-fledged slowdown. Even worse, it's not a conventional slowdown, for Europe's growth is declining steeply, even though inflation is escalating.

In short, the European economy has been afflicted with stagflation, something not seen since the 1970s in the United States.
Surprisingly, the question no longer is: What does Europe do? Instead, the first major moves will fall to the U.S. central bank, which will have to start boosting rates to draw the over-abundant liquidity from the financial markets and tame inflation.
But the process could take some time.

A Bullish View

Few mainstream economists see such a dour outcome for the Fed's rate-cutting strategy.
Right now, they note, the battered U.S. greenback is poised to post its strongest month against the euro in nearly a year on anticipation that the Fed might be ready to end its rate-slashing campaign.

"If the Fed is not at the end of the easing cycle, it's near the end," Jeff Gladstein, global head of foreign-exchange trading at AIG Financial Products (AIG) in Wilton, Conn., told Bloomberg News. "I don't think the dollar will strengthen aggressively by any stretch, but I do think it's trying to bottom."

The dollar has risen 1% against the euro in April and almost 4% against the yen during the same period.

But even those economists temper their optimism. The weak dollar is taking its toll, as commodities (many of which are dollar-denominated) continue to soar. It is likely the Federal Reserve hopes the softening U.S. economy will dampen demand and help to keep inflation in check. But if the current economic contraction does nothing to bring down soaring food and fuel prices - even if Europe doesn't fade badly - the Fed will have no choice but to reverse course and raise rates to battle inflation.

At least two Federal Reserve Bank presidents are more concerned with inflation than growth. Richard Fisher, president of the Federal Reserve Bank of Dallas, and Charles Plosser, president of the Federal Reserve Bank of Philadelphia, both voted against lowering rates at the last FOMC meeting.

"Really, what we're dealing with are inflationary expectations," Fisher said in an interview last week with Fox Business News, The Philadelphia Inquirer reported.

"And what we're trying to make sure doesn't get out of control," he said, "are the expectations of consumers and businesses, the way they price their behavior, the way they conduct their businesses, to begin imputing certain inflationary patterns, because then they'll be exacerbating inflation, and that's something certainly none of us wish to see."

[Editor's Note: Money Morning Associate Editor Jason Simpkins contributed to this article.]

News and Related Story Links:

AFP:
US stocks steady ahead of GDP, Fed decision

Bloomberg:
Dollar Rises to Three-Week High on Bets Fed Will Signal Pause

MSNBC:
Fed may be forced to take a breather soon

The New York Times:
Markets Await Fed's Interest Rate Verdict

Reuters:
U.S. 1st quarter growth seen weakest since 2002

The Philadelphia Inquirer:
Fed faces a difficult decision.

Money Morning News Analysis:
"Dire Inflation Outlook" for the EU and Sluggish Growth Add to ECB Woes.

Money Morning News Analysis:
Boeing Earnings Surprise Wall Street Just One Day After Weak Dollar Forces Airbus to Raise Prices.

Money Morning News Analysis:
Fed Will Grab Headlines This Week With "Last Hurrah" Interest-Rate Cut; Key GDP Stats Also Anticipated.

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Nancy E. Griffin
Kinlin Grover GMAC Real Estate
Certified International Property Specialist
193 Cranberry Highway
Orleans, Cape Cod, MA 02653
ABR, FIABCI, CIPS, TNR
508.632-0576 fax
508.726.7914 cell

Subject test

2008-04-30T10:39:00.001-04:00

Panama Canal Timelapse

2008-04-15T15:02:00.001-04:00

Have you ever been on a boat through the Panama Canal? If not, check this out...you won't believe it!

Truth about Zoe's Ark

2008-04-15T14:57:00.001-04:00

View this video to find out what really happened with Zoe's Ark...

The Global Guru: Bigger and Better Than China

2008-04-15T14:48:00.001-04:00

TheGlobalGuru.com | GlobalBullMarketAlert.com | GlobalStockInvestor.com

April 15, 2008

Vol. 3, No. 15

Bigger and Better Than China

Fellow Investor,

Twenty years ago, I couldn't walk into a book store without tripping over yet another book about how Japan was going to dominate the world's economic future. The same thing is true today about China. Yet you'd have to search long and hard to find a book written on the world's third-largest economy, Germany. But Germany punches far above its perceived economic weight. Taking an economic snapshot today, at market exchange rates, Germany's economy is still bigger than China's; 82 million Germans generate more exports that 1.3 billion Chinese. And had you invested in the German stock market five years ago, you'd be three times better off than having invested the same money in the S&P 500. And here's a shocker: you'd have made more money investing in slow-growth Germany during the past five years than investing in the emerging global superpower China. With the collapse of the Chinese stock market bubble, the German tortoise has taken over the Chinese hare.

Bigger and Better Than China: Germany's Image Problem

But don't expect to see solicitations for "Hans Schmidt's 'New Germany' Investor" in your e-mail inbox any time soon. Germany is just too hard of a sell. If it is better to be hated than ignored, Germany's popular image is even worse than bad boy Russia's. And sadly, that truth applies to all things German. Germany's remarkable cultural heritage has been all but erased from today's collective memory. Goethe's literature, Richard Wagner's operas and Nietzsche's philosophy are all treated as either too obscure or too politically incorrect to be widely taught in America's college classrooms. The German economy is rarely even mentioned in the U.S. or U.K. financial press. And even when it is, it's been portrayed as slow-moving, lethargic, and hopelessly behind the curve. Germans' own gloomy Weltschmerz -- a general unease about their role in the world -- turns even good news into bad. Today, roughly 80% of Germans feel the economic recovery of the past two years has passed them by.

(Continued below)

International Real Estate

2008-04-15T14:17:00.001-04:00

Over the last seven years I have been building my business of domestic real estate on Cape Cod and four years ago completed my CIPS designation for International Real Estate. I have been traveling to Panama the last six years and watching an incredible transformation of the country. The GDP of Panama for the last three to four years has been on a steady incline from 7, 7.5 to 8 and 9%... The expansion of the canal will effect the entire world. I found myself involved with Commercial real estate of major developers throughout the country. My role quickly changed because what developers and entrepreneurs needed throughout the country is funding of investors or private equity lenders to invest in their projects with a high level of return. I am now involved with two major hedge fund brokers searching for projects throughout the world to present to their platform funds for investing. The US dollar is so weak that most portfolios would like to move money out of the US into an emerging real estate market like Panama, China, India, Nicaragua and Hong Kong. I am expanding my business and would like to make contacts with the actual fund managers instead of fund brokers; basically be in touch and working for the fund instead of one or two steps removed. Most funds today are looking for "Green" energy projects and I have made contact with quite a few. Currently I have presented projects in Panama, Mexico, Dominican Republic, Costa Rica, Uruguay, Brazil and Bulgaria. I have contacts in India, Hong Kong, Ireland, Italy, China, Macao, and Vietnam. All have energy projects, hotel casinos, urban and infrastructure projects and well as airports. Macau had a GDP of 26% last year! Call me to learn more!

Find out more at www.ramadasaintl.com

Investing in Panama

2008-02-28T11:51:00.000-05:00

The world is becoming increasingly aware of the business opportunities in Panama and investments are rising as the potential is appreciated. Panama has always stood apart from Central and South America, with its dollar based economy and stable political situation, sustained by its Canal, Free Trade Zone, and international banking. Many Fortune 500 companies are based there. Panama bucks the trend of the flat to negative GDP growth that its neighbors continue to battle. All these factors together with the initiative in the tourism sector are encouraging all types of investment in Panama .

Source: www.businesspanama.com