Report from Panama: That's the way it looks from here

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(http://baumanblog.sovereignsociety.com/) I spent the last eight days in Panama, and the answer is -- the Panama Boom goes on.

The Bubble, (if it can be called that), has not burst -- and it doesn't look as if the economy will cool anytime soon. The "crossroads of the world" is Latin America’s economic leader.

My recent close observation of all things Panamanian began in 1999. That's when I returned after an absence of 25 years. (In the 1970s I visited there five times, during the heated debate on the Panama Canal treaties). So I enjoy the advantage of perspective.

And the Panama I see continues to change and grow at a fast pace. It's come a long way from the American colonial days that ended in 1999 -- when the United States turned over full control and sovereignty over the Canal to the Republic of Panama.

No More Devils?

While we were holding our Sovereign Society Total Wealth Symposium in Panama City last week, President Martin Torrijos announced that the cosmopolitan metropolis of 1.5 million will no longer have to endure (or enjoy) those funky school busses known as Diablos Rojas (Red Devils). For as long as there has been motor traffic, these chugging, overloaded, wheezing transports have been as familiar as are red double-deckers in London. Next year they will be replaced with modern busses on regular routes and -- gasp -- with air conditioning!

The main waterfront traffic artery, Avenida Balboa, is being widened from six to 10 lanes, accompanied by a wide swath of green parks fringed with palm trees and flowers. Now -- if they can only get some traffic cops to control the gridlock and ticket the thousands of red light runners.

Bargains Over

What I've been saying for sometime now was confirmed many times over the last week -- if you're looking for low-priced real estate, especially condos, in Panama City, you're too late.

Oh, you may find an occasional bargain, but in spite of hundreds of towering condo blocks inching skyward all around, the prices of same are also elevating everyday. A new bay front condo that could be had two years ago for $140,00 is now going for $260,00 00 -- so Panama is edging toward South-Florida-before-the-U.S.-mortgage-collapse prices. In a suburban town house development along the way to and from Tocumen Airport, row houses that were on sale for $60,000 now bring twice that.

Major Growth

As in China, Panama's GDP is growing at a China-like rate -- over 10% last year, a projected 8% or 9% this year. Unemployment in a country with a lot of poverty is final going down. Rising incomes have produced a growing demand for creature and household comforts. Five years ago there were no major malls -- now there are four.

I dined with close friends and their friends last week in a modest, middle class home in the hills near Panama City and, except for the fact that almost everyone spoke only Spanish, it could have been South Florida - although, come to think of it, more folks speak English in Panama than in South Florida, where I live.

Panamanians are taking a close interest in the upcoming American presidential election. They are at the beginning of their own presidential election campaign, with President Torrijos limited to one 5-year term that ends next year. I spent an overnight at a new Pacific Ocean resort (The Decameron) and on the way the Pan-American Highway was plastered with political signs. Locals predict that Panama City's mayor Navarro may be the next president, and in any case, current pro-American policies will continue-- and, even if Washington doesn't like it, Panama will remain one of the world's first class tax havens.

Favorite Son?

Oddly enough, maybe because he was born in the Panama Canal Zone, a lot of Panamanians think the U.S. presidential winner could be John McCane. Then too, Panama has dealt with control-freak Americans for almost a century -- so may be they recognize Hillary and Obama for what they are.

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