If you guys want the real stories of what is happening in Mexico then cruise this website. It's the orangemane for Americans living in Baja.
Odysseus....I'm pointing this forum out to you specifically since you said you are considering living in Mexico. Years ago I considered buying a place in Mexico and I thank God I did not.
Baja can sugar coat what's happening in Mexico all he wants. The hundreds of people living down there who post on this forum tell a much different story.
Here is just one. http://forums.bajanomad.com/viewthread.php?tid=52944
Pretty common to get hustled by the police. http://forums.bajanomad.com/viewthread.php?tid=52510
It's funny that a poster would even justify it by saying "You should know better than to carry money in Baja".