Comments on: The unintended consequences of cheaper remittances http://blogs.reuters.com/felix-salmon/2014/03/04/the-unintended-consequences-of-cheaper-remittances/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: markhahn http://blogs.reuters.com/felix-salmon/2014/03/04/the-unintended-consequences-of-cheaper-remittances/comment-page-1/#comment-49478 Tue, 18 Mar 2014 21:29:16 +0000 https://blogs.reuters.com/felix-salmon/?p=23211#comment-49478 I wonder if banks are going to find themselves bypassed when remitters use bitcoin (et al).

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By: FDum http://blogs.reuters.com/felix-salmon/2014/03/04/the-unintended-consequences-of-cheaper-remittances/comment-page-1/#comment-49418 Sun, 09 Mar 2014 18:29:36 +0000 https://blogs.reuters.com/felix-salmon/?p=23211#comment-49418 Why is it a “curious phenomenon” that prices rise as volume goes up? Didn’t the housing market do the exact same thing?

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By: 1justmyopinion http://blogs.reuters.com/felix-salmon/2014/03/04/the-unintended-consequences-of-cheaper-remittances/comment-page-1/#comment-49380 Thu, 06 Mar 2014 15:05:57 +0000 https://blogs.reuters.com/felix-salmon/?p=23211#comment-49380 What’s 50 + 67 equal? I believe it’s 117 Right? So then the year 1967 plus 50 years would equal the year 2017 right?

And the year is now 2014 so in 3 more years the American Freedom of Information Act allows the world to view the first Photographs that must be made public of the USS Liberty Massacre where Israel ordered its Army, Navy, and Air Force to destroy our American war vessel by bombs, Torpedoes, Strafing, and Shooting the American Officers and Enlisted Men in International Sea Waters that immediately killed 37, and wounded 170 that have died and been dying from their wounds in the 1967 Israeli 3 Day War.

No Enteral Flame has ever been erected in Arlington National Cemetery for these brave dead American Soldiers, no mention of their sacrifices in any American High School History Books, no President, Senator, or Representative has shown any public display of gratitude for their courage in this conflict, all those who were there and died have been all but forgotten but in 3 years the world will come to know the truth.

President Johnson was suspected of the JFK assasination by conspiracy theorists and the conspiracy to keep quite the USS Liberty Massacre for the last 50 years came on President Johnson’s shift so is there a link between the two conspiracies with the same man involved?

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By: winstongator http://blogs.reuters.com/felix-salmon/2014/03/04/the-unintended-consequences-of-cheaper-remittances/comment-page-1/#comment-49379 Thu, 06 Mar 2014 10:17:11 +0000 https://blogs.reuters.com/felix-salmon/?p=23211#comment-49379 I think you are missing the cause-effect. As remittances between two countries grow, the cost to send that money goes down. Invariably, remittances for that pair of countries will stop growing, level off, or decline. As new countries emerge as destinations of outgoing funds, their transaction costs will be higher than the traditional destinations. You may also have geographic effects – no matter how electronic business gets, it will be easier to manage transactions between the US and Mexico than the US and China.

Remittances are mostly about to-Mexico transactions. But if you look at the World Bank data: http://blogs.worldbank.org/peoplemove/es timating-outward-remittance-flows-from-t he-us-over-100-billion-a-year
nearly a third of US remittances go to Asia. I would imagine that just comparing costs between Mexico, China, India, the Phillipines and Vietnam, costs to send money to Mexico would be considerably lower than the others.

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By: marconick http://blogs.reuters.com/felix-salmon/2014/03/04/the-unintended-consequences-of-cheaper-remittances/comment-page-1/#comment-49378 Thu, 06 Mar 2014 06:42:33 +0000 https://blogs.reuters.com/felix-salmon/?p=23211#comment-49378 Hi Felix, interesting blog. I was wondering whether you heard about such thing as “the financial crisis”? Is it possible that there is no correlation between prices decreasing and flows dropping in US to Mexico, and that another factor is contributing to the reduction of flows instead?

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By: AngryInCali http://blogs.reuters.com/felix-salmon/2014/03/04/the-unintended-consequences-of-cheaper-remittances/comment-page-1/#comment-49377 Wed, 05 Mar 2014 03:50:32 +0000 https://blogs.reuters.com/felix-salmon/?p=23211#comment-49377 After reading this, I’m unsure if it’s harder for people in the US to send money back to Mexico, so it’s hard for me to see why lower fees are a problem. Sure, some banks have backed out, but has that really been a problem for remitters?

Also, the correlation between rates and growth might simply be statistical or the result of an inefficient market. Are the transfer locales with the highest growth really small, making high rates of growth easy and also implying high costs? Or are they served by an effective monopoly, meaning a competitor can increase usage with just a slight lowering of prices?

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