I decided to hit the farthest, also the cheapest, hostel first. So I got on the subway heading northeast.  

 
The stop is named after this church and is the first thing you see.  

There is a lot of modernity to Panama City. That park is only 6 years old. Outside of the old quarter, streets are mostly wide, most buildings are in okay shape, businesses aren't jammed together, and I haven't seen anything close to a shanty town.  

I'd like to mention something else. Even though Costa Rica and Panama are very americanized: english signage, American brand stores and products, even american prices (yes, just as high as back home), and acceptance of the dollar (Costa Rica), these are definitely Latin countries: don't expect anyone to speak english, even in a Subway, Wendy's or Sam's.  

So I go to the first hostel: $55; at hostels.com it was $32. I checked their website when I got back to my room: $55 is their regular rate. But it was small and I didn't see any other bacpkackers around. Same problem at all the others; some were all booked up. In Mexico, I usually got a lower rate as a walk-in, and their prices were much lower, even for oceanfront. But it is high season now. Nevertheless, I don't know how this one guy can get $55 (maybe the rooms are extra nice). But that's what I mean by american pricing: you're paying as much here for a room as you would in the US (but there are a lot more available at under $100 than in the US). It's just making it a little tough on my budget; good thing I allowed for quite a bit of slack!  

So I got back by noon, and told them I'd stay another night. Then I reworked my game plan, again. Ended up making a reservation at a $40 per night hostel.  

Ate lunch at McD's, again: dbl cheese, fries and coke for $3.95.

Dinner was from a chicken place: half a chicken, lumpy mashed potatoes, for $6. The pricing is the same as in the US, but the quality is not.  

Some research on what to see, then off to dreamland.