Monterey genertes 8-10 % of Mexicos GNP due to all of the US corporations that outsource there.
The Narco armies have attacked their prisons, police stations, markets and have taken the lives of so many officials and police that they are literally in control.

With the loss of Monterey I believe Mexico is a failed state in all but a symbolic goverment. Once the rails trucking and oil wells are breached there is complete anarchy.

Legalizing all drugs in this country would cripple the narco barons of Mexico and would have to go legitimate like the US mafia did in the 80's

The Mexican army does not seem to have a handle on the situation. They lose their soldiers to either bullets, machetes or a higher paycheck from the narcos.