The pesos loss has not only shaken investor confidence on the Mexican stock market. but triggered a shortterm debt crisis that is affecting currencies and markets throughout the hemisphere. Without a swift and sure response to this crisis. Mexico could face serious economic decline and political instability. President Clinton was quick to recognize the longterm danger this poses for all of us. A Mexican crisis would hit the United States economy hard by reducing Mexicos ability to import United States goods and services. It could increase illegal immigration and destabilize the Mexican Government. Finally. it could spread to other emerging market economies and further reduce U.S. exports. In light of these potential consequences. the administration moved expeditiously to propose a package of loan guarantees to address the problem.
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illegal immigration