Mexico seizes utility company

[gnosis]

http://edition.cnn.com/2009/WORLD/americas/10/11/mexico.utility.company.raid/index.html
The Mexican government on Sunday dissolved the company that supplies power to the capital and four central states because of the utility's unsustainable financial position
At the current rate, the government would have to subsidize the company to the tune of 300 billion pesos (U.S. $22.5 billion) by 2012, the minister said.

[Six Gun Jim]

Oh yeah, Mexico is fine, nothing to see here. 

[Hope@ZeroKelvin]

Do you guys remember those posts from heretic monk back in 2007 about the drop in the Canterall field and subsequent financial problems leading to real problems in Mexico?

http://www.doomers.us/forum2/index.php/topic,4417.0.html

Might be some good reading and review.

[Six Gun Jim]

Given the deteriorating situation with the drug cartels in Mexico I think the fate of Cantarell might have less to with geology and reality than it does politics. The stability of the producer nation has long been critical to getting oil out of the ground and places like Nigeria are a good example of where Mexico is going. Once the Mexican government becomes so toothless it isn't even worth bribing I'll wager the decline rate is going to be related closely to the mood and ambition of cartel factions.

[gnosis]

Do you guys remember those posts from heretic monk back in 2007 about the drop in the Canterall field and subsequent financial problems leading to real problems in Mexico?

http://www.doomers.us/forum2/index.php/topic,4417.0.html

Might be some good reading and review.

I sure do!  I also remember conversing in that thread, or another one, with some folks who live in Mexico. I think unrepentant cowboy made some good contributions as well.
All in all, it's a bad situation, and when I read the article about the police seizing the utility, I wasn't surprised.

Así es!! Pobrecitos.      Ojala que hay mas "doomers" allá que lo normal porque estan en graves problemas.

[Katz]

Do you guys remember those posts from heretic monk back in 2007 about the drop in the Canterall field and subsequent financial problems leading to real problems in Mexico?

http://www.doomers.us/forum2/index.php/topic,4417.0.html

Might be some good reading and review.

I sure do!  I also remember conversing in that thread, or another one, with some folks who live in Mexico. I think unrepentant cowboy made some good contributions as well.
All in all, it's a bad situation, and when I read the article about the police seizing the utility, I wasn't surprised.

Así es!! Pobrecitos.      Ojala que hay mas "doomers" allá que lo normal porque estan en graves problemas.

Mexican culture is all about doom. Dia de los muertos etc

[Hope@ZeroKelvin]

@Katz:  I have always thought parts of the Mexican culture were way ahead of the curve...

[rocketgirl]

Hmmm, Gov. take over of public utility, now where does that ring a bell?  Hmmmm, Argentina maybe?  Now wait for the gov. sale of said company to a private investor and you'll really see the decline.  Hope I'm wrong.

[Ocelotl]

You haven't been given a wider picture, Actually there were two public electricity companies in Mexico, LyFC provided electricity to Mexico City, metropolitan area and conurbations in and in the surroundings of the lakebowl called "Valley of Mexico". The rest of the country gets the electricity from the CFE (Federal Electricity Commission). Point is, all the rebuildings in Chiapas, Cancun, and other areas you may have seen after natural disasters, were handled mostly by CFE.

Coroporatism was very strong within LyFC, bureaucratic schemes and methods were our daily bread with them. I don't know anyone that hasn't got a "go to the next desk since I'm busy" from a newspaper reading clerk, or going to pay to the collecting offices and finding only one of three or four tellers open... Or a disparate bill that was answered with a "pay first and then we'll check your account". If you ask in the street, you'll get lots of anecdotes about this... Many people are not aware about modernization attempts that were negotiated and denied, restructuring the collective contract was a martyrdom with them. I do worry about the extra unemployment provoked by this, but well have to see the long run, after CFE rebuilds the grid and stabilizes this mess.