Central America: Everybody wants a canal
and I have a bridge to sell you,
Two, Three, Many Canals in Central America (emphasis added):
Besides, the Panama Canal is already undergoing an expansion of its capacity to accommodate the latest class of super tankers through the isthmus. But everywhere you go in Central America today there is talk of new canals and of China’s willingness to pay for them.
Nicaragua, Guatemala, Costa Rica, Mexico, and Honduras, too. And there’s even a dry canal, “high-speed rail system powered by a hydro-generated plant in the Gulf of Fonseca.”
The whole thing sounds very pie-in-the-sky to me. As I mentioned last month, the Nicaragua Canal is not underwritten by the Chinese government, but instead by some guy with experience only in the telecommunications industry who’s not even started the feasibility studies – but has a track record of floating stocks, and who was awarded a $300 million telecommunications contract in Nicaragua by Daniel Ortega.
The Chinese government apparently has nothing to do with it. More to the point, why would the Chinese government involve itself with such high-cost, high-risk projects when the Panama Canal expansion is going well?
Could it be that the next Chinese stock market bubble will feature Central American canal stocks?
Somewhere in a jail cell, Bernie Madoff is asking himself, “why didn’t I think of that?”