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One of my tasks was to help them set up a Finance Company subsidiary in Mexico. In a scouting trip to Mexico I learned that the wealthy owners of the Caterpillar dealerships were sending their money to the US in anticipation of a devaluation that occurred every six years with the change of Presidents. The Wall Street money traders I talked with said that the peso would not be devalued. I recommended that Caterpillar put off its investment in the subsidiary until after the dust settled with the elections. When it finally did so, it got in for 45% less, because of the decline in the dollar. What led to Mexico’s 1995 financial crisis? What challenges face governments dealing with a financial crisis like the one that Mexico experienced? Why did the United States provide assistance to Mexico? Why was it important to the United States to stabilize Mexico? Is there any relation of the crisis to the increase in illegal migration to the US in the late 1990’s and early 2000s? How about to the growth of the drug trade?

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