• Categories
  • Archives

Brazil’s Word to the US: Don’t Even Think About Socializing Your Losses

President Lula of Brazil with Petrobras workers Reacting to another day of sharp decline of close to 5% in the Brazilian stock market and a strengthening dollar against the domestic real, Brazil's President, Luiz Inácio Lula da Silva, told reporters that his country this time will not have an economic package to deal with the global financial crisis and that Brazil doesn't accept socializing the consequences of the crisis.

"There will be no economic package," vowed the Brazilian leader. "Every time in this country that there has been talk about an economic package the Brazilian workers were the ones who suffered the losses, every time. So, there will be no package. We will be taking measures step by step, we will take the necessary measure in response to each new fact."

"In times of lean cows," said Lula using a Brazilian idiom meaning in tough times,  "nobody came here to help, now that there are losses they want to socialize them with us. We don't want this kind of socialism. We don't want to socialize misery, We want to socialize prosperity."

The Brazilian president reminded that Brazil's domestic debt is not computed in dollars anymore making the country less vulnerable to the US meltdown and mentioned that Brazil has US$ 207 billion in reserves. He also observed that his government thanks to a temporary measure signed by him is now capable of helping banks in difficulty and granting loans to those who wish to export.

"Mexico's crisis, in 94, brought a US$ 50 billion loss to the economy and Brazil almost broke. Asia's crisis brought losses of US$ 70 billion, and Brazil almost broke. The Russia crisis brought Russia a loss of US$ 40 billion and Brazil almost broke. The American, crisis has already brought a loss of almost US$ 1 trillion to the United States alone, this is more than 30 times all the other crises put together and why are they heartbroken? Because Brazil hasn't broken yet."

Lula warned the countries affected by the crisis to come to their senses. "When we were eating the bread kneaded by the devil (had a hard time) nobody helped us, now that we are having a nice mortadella sandwich we don't want to go back to the bread kneaded by the devil."

Bovespa, the Brazilian stock exchange closed this Tuesday, October 7, 4.66% below the previous day, at 40,139 points. Earlier in the day the market had declined over 5% before a speech by American president George Bush talking about his faith in the economy to overcome the slump.

The US dollar, on the other hand, had a big jump once again. After going up 7.5%, Monday, the American greenback got another 5.05% bump, ending this Tuesday at 2.31 reais per dollar, the highest value since May 31, 2006.

Black Monday

Latin American stocks plunged Monday, led by a stunning 15% intraday drop in Brazilian shares, on concern about a world recession that could devastate the region's commodities-based economies.

Trading was halted twice on São Paulo's Ibovespa index as stocks reached their lowest level in more than two years before rebounding. Brazil's currency, the real, slumped nearly 7% in its biggest one-day percentage loss against the US dollar since 1999 and closed at a level not seen since September 25, 2006. The real finally closed at 2.17 to the US dollar from 2.04 on Friday.

The Ibovespa later recovered, but still ended the day down 5.4% at 42,101, its lowest closing since November 28, 2006. Last May the Bovespa hit 73.000 points.

Argentina's Merval fell 5.9% to close at 1,423, while Mexico's IPC index slid 5.4% to 21,749. Chile's IPSA dipped 6% to 2,450 (worst since September 1998), and Colombia's IGBC fell 4.9% to 8,761.

The Chilean peso lost 4% to the lowest since June 2005 closing at 592 to the US dollar.

Mexico's peso meanwhile dropped to 11.8 against the US dollar, a sharp decline from 11.1 on Friday and the lowest since the government lopped three zeros off the currency in 1993.

Across the region, panicky traders said they had no idea when the market carnage triggered by the U.S. mortgage default debacle would end.

Monday's losses follow a batch of steep market declines on Latin American markets during three sessions last week. They mark the second time in a week that the Ibovespa fell more than 10% in intraday trading, and Monday was the first time since 1997 that Brazilian trading was halted twice in a day.

Brazilian equities, which have been pumped up with massive cash inflows for years, are now the hardest hit in the region. Foreign investors who only months ago gushed about Brazil's apparent immunity from the downturn are dumping shares in favor of investments they consider less risky.

Latin America must "realize that competition for capital is going to intensify," US Commerce Secretary Carlos M. Gutierrez told reporters on Monday, ahead of a trip to Brazil this week.

The Ibovespa has lost 34% of its value to date this year, including a 22% decline since September 19, when Brazilian President Lula da Silva shrugged off questions about the impact of the US financial crisis by telling reporters to "go ask Bush."

Lula da Silva called an emergency economic meeting with the nation's finance minister and central bank president, and the Bovespa stock exchange put in place a new rule calling for a longer trading halt if Ibovespa losses hit 20% in one day.

The Ibovespa is likely to bottom out around the 30,000 points, still 40% below Monday's close, said Ricardo Araújo, a finance professor at the Getúlio Vargas Foundation University in Rio de Janeiro.

Bzz/MP

Tags:

  • Show Comments (32)

  • dnbaiacu

    Thanks for the detailed correction
    [quote]must make an important correction À¢€“ since the turmoil between 1989 (when the Former Eastern Bloc started collapsing) and 1991 (when the USSR disintegrated, there has been NO Communist Bloc;[/quote]
    It motivates me to study up on the particulars of the states mentioned. Just reverting back to basic high school/media inspired propaganda in my reference to a “Communist bloc”. 🙂
    Thanks Augustus!

  • dnbaiacu

    Joao
    I see that I am going to be very busy undercutting the seafood market. I can’t get back to Brazil fast enough. I am going to ride this dollar out. And leave when it free falls. That should be here soon enough. Something weird is happening with the dollar( or is it the Real?) pre-election. I wonder “who” thinks they know “what”?

    I just feel sorry for all the clueless youth.. No one is changing their game plan. 😥 😥

    LOL, the results of saturday Oct 20th should be interesting. IF they let us in on the details. I imagine it being the stamp on the Amero.. But that’s probably a little too soon. But you never know???? 😀 😉

  • dnbaiacu

    Joao…
    [quote]But you have to understand that for the “MONEY” to rule, it has to keep the “serfs” happy and well fed (MaslowÀ‚´s Pyramid of needs.I bet you know about it). [/quote]
    The “serfs” in the U.S have to be beaten into submission first. I think this is what is happening. Did anyone make a fuss about “UnaSur” in Brazil? If so,, few heard about it. And most people I know didn’t even know a union was created in South America. But this is to be expected from an overly passive country thanks to the domination of the Catholic Church.
    Whereas a similar move like that would NEVER in the U.S. Your proudest slaves “have to be broken” into submission. It was easy for Europe to Unionize. The motivation behind that is clear. But the U.S uniting with Canada and Mexico is a very hard sell. A true crisis has to be created. Enter the Fear Factor.
    Now the “government” as the media keeps calling it,,when it is the Fed, wants to “save” some smaller banks in return for stakes in the companies. They are really wasting no time.
    We have here what is called the “Patriot Act” which will CHANGE everything the next time there is a terrorist act on U.S soil. This will finally put everything in place. The Fed /Gov controlling everything that matters. And laws in place that take away all kinds of privacy and allows convictions without the due processes the citizens previous enjoyed. We are in for a ride. 😀 🙁 😀 🙁 🙁
    In the end ,,I too think that Brazil will be sustained to some degree. They didn’t get that 30billion some years back for nothing. THAT I know for sure! Brazil is IN the game.
    About teaming up with Chavez?! Highly highly unlikely if I understand geo politics correctly.. There AlWAYS has to be a contender in the region. To keep things going. It’s just the way it is. Always has been. There is no profit in everyone being on the same page.
    I totally agree with Ch.c on the U.S being the new emerging market (not taking into account a terrorist attack on U.S soil anytime soon) The U.S is destined to be the U.N’s cheerleader. (Imagine McCain doing that?…..Not! , No public speaking skills whatsoever, pathetic orator) Enter “race neutral” mass appeal Obama. Of course anything can happen , but I am betting on this scenario for awhile. Everyone has got to be mobilized.Then you really come out and identify a COMMON ENEMY. HMMMMM wonder which group THAT will be? 😉
    There is already an ASIAN secretary general.
    …. Do you think that was a coincidence? It will never be a person of Euro descent.EVER!. Our basic human instincts are being played to the hilt. Racial and Nationalistic PRIDE,,,, GREED….. FEAR… We are TOO simple. 😉 🙂 😉 You have to know the tricks of your enemy. You have to see that he has human pawns. And it becomes so clear. It all fits.
    I find it AMAZING that you can deduce this game to basic human instiincts. The “powers that be” know exactly which buttons to push. And how to seduce. The “Garden of Eden” all over again. NEVER disappeared. Because it represents the fallen human consciousness.
    Be glad you have a roof over your head TODAY. And food to eat TODAY.. This is the secret. More than anything else know that the opposite of FEAR is … LOVE.

    [quote]8À‚ There is no fear in love,[/quote] 1John 4:18
    [quote] God is love.[/quote] 1John 4:8

  • dnbaiacu

    Any takeover is a conspiracy…
    [quote] Trying to bring Conspiracy Theories into this discussion only tends to obfuscate and confuse. If one is trying to sort thru the mess and figure out where to move assets, preconceived ideas of worldview only hinders and turns one into a Rushdooney.[/quote]
    Most people naturally hate to believe they are being duped..This is understandable. We WANT to TRUST..
    But the reality is changes in systems and governments are ALWAYS conspired. Can anyone give an example of just ONE government or system that was successfully changed that didn’t come about by a PLAN.
    These rulers lie all the time. Half know what they are talking about. Cheat and Steal . And YET , none of it is supposed to be a “conspiracy”..
    No,, no one likes the thought of it.. But it is the TRUTH. The trick is to have you believe that no one could think of or do such a thing. A basic war strategy to maintain some level of leverage is to KNOW you have an enemy.
    Understanding that conspiracies exist and ALWAYS have actually CLEARS UP the confusion.
    This is a mental battle anyway. If your trust is in your money,, you are already a casualty.. The types that are quick to jump off buildings when they lose their money.. Your FAITH is displaced.
    Yes, alot of “conspiracy theories” are whack. And have to be sifted through. But to think there IS NO conspiracy is to be BLIND historical reality

  • dnbaiacu

    Joao
    [quote]China is a big trading partner and we should look towards them to keep buying our raw material and Soy, while India will continue to be the largest importer of our Ethanol[/quote]
    If my notions serve me correctly according to what I have studied, you may be right. At some point the Communist block is going to have a HUGE influence. And will set the tone for the geo-poliical enviroment in the days to come. Other countries will just have to “comply” out of no other real choice BECAUSE of the economic climate.
    The potential for “post election” confusion and distraction in the U.S is GREAT, therefore empowering the once called “sleeping giant” to possibly pull some surprises few will expect.
    I also find it interesting that there is not much mention of Arabic economic influence. Some cat is bound to be let out of the bag between these two entities. (the communists and the arabs).
    Whatever it is, it is prophecied to result in increased INTOLERANCE on a religious bases. Communism already takes the lead in that. And if the LEFT is destined to show some muscle, some BIG money which averts a deepening of the crisis will be coming from that direction. Remember MONEY RULES. So you ARE on to something.
    Let’s stay tuned

  • dnbaiacu

    Contrived Crisis?….
    I certainly wouldn’t doubt it. But it would further prove the elaboration of the larger scheme. It’s been YEARS in the making. A simple booby trap. Now the U.S just needs the best “talker” to console everyone or keep hope alive. Convince them they need a “new system”. In the meantime the situation in Iraq is disintegrating. Attacks are up now with the use of female suicide bombers. It IS getting interesting “fast”.
    Ch.c suggestion of the the Warren Buffet interview was good. Rough times ahead. And really no choice BUT to accept the bailout and whatever future “bailouts'” are to come.
    The whole scene is changing.. And we are being pyschologically prepared with this election to accept it. BEG for it.
    I am just interested in seeing which FEAR is going to dominate and influence the results of the election. 🙂 😉 😀 🙂 😉 😀 🙂 😉 😀 😉

  • dnbaiacu

    When will people get it?…
    All this is ,is a deliberate socialization of the world ecomony by HUGE international bankers. The LURE was GREED ..Pure and simple.. Easy money. They knew everyone would fall for it and NOT be able to pay up. Now [b]THEY[/b] buy everything up.
    Most think that this is too elaborate of a scam to be true. That it was “accidental” at best. And the WORST it could be is ,,,,,, “DIABOLICAL” ????? Which of course, the self-assuming intelligent would naturally say “defies logic”.
    WAKE UP!
    That’s exactly what they want you to believe. 😉
    If you can’t bear the thought of a “spiritual” explanation for all this, at least do yourself a favor and research and/or review Karl Marx. This is where we are headed.
    Humans are very simple at their most basic levels. I am sure the “MORAL RELATIVISTS” (whatever that is) will agreed. GREED motivates the masses. Then you are TRAPPED.. Then you cry.

    BOO HOO BOO HOO 😥 😥 😥 😥 😥 😥
    Funny thing is these bankers and the powerful families and individuals that run them . believe in and CONSULT demons. HELLO!!!!! Do your research.
    Humans GET moving with the FEAR FACTOR also.. As we can see with these markets and politics.
    Where are we going people??????

  • Ric

    Maybe Brazil needed to devalue the Real badly and used this current crisis as an excuse.

  • João da Silva

    dnbaiacu
    I hear that some banks in Brazil are also in trouble and I wonder which is the first one to go belly up :D.

    [quote]About teaming up with Chavez?! Highly highly unlikely if I understand geo politics correctly.. There AlWAYS has to be a contender in the region. To keep things going. It’s just the way it is. Always has been. There is no profit in everyone being on the same page.[/quote]

    You understood the Geopolitics [i]very[/i] correctly! However, I think that the leftist “Populism” in Lat Am countries is being slowly, but steadily being neutralized. It would be a fun to watch the election results in Brasil on the 27th of this month and Nov 5th in U.S. of A. 😀 😉

  • Ric

    Also
    I Chronicles 26:18.

  • Augustus

    LENIN MUST BE LAUGHING IN HIS GRAVE // Remarks for Dnb & Joao
    Dnb remark made me think of how ironic it is to see the major centers of Western Capitalism virtually taking over their private banks, thereby socializing their financial systems (even if temporarily and under duress)À¢€¦ Regardless if LeninÀ¢€™s embalmed corpse remains in the traditional Red Square Mausoleum or whether it has already been transferred to a cemetery in St. Petersburg, he must surely be laughing out loud at his imperialistic opponents beyond the graveÀ¢€¦

    In connection with Dnbˢ۪s comments:

    [quote]À¢€œIf my notions serve me correctly according to what I have studied, you may be right. At some point the Communist block is going to have a HUGE influence.À¢€Â[/quote]
    I must make an important correction À¢€“ since the turmoil between 1989 (when the Former Eastern Bloc started collapsing) and 1991 (when the USSR disintegrated, there has been NO Communist Bloc; as the sole remaining À¢€œself-appointedÀ¢€Â Communist countries remaining are: Cuba (which does indeed remain Marxist Leninist), China (which nowadays should be classified as a Market Leninist State), and North Korea (which resembles rather a Monarchical Leninist state). In addition, Joao was also talking about India, which has never been a communist country (despite being politically allied with the USSR)

    As for Joaoˢ۪s entry reading:
    [quote]À¢€œOf course Cristina and Michelle know how to play the game better though the former has not read about MaslowÀ¢€™s needs and probably she does not want to do soÀ¢€Â[/quote]
    Perhaps Michelle Bartellet (Chile) will play the game you implied, since she is a brilliant stateswomanÀ¢€¦ However, I could hardly imagine the Argentine Prez-Bimbo reading (let alone applying) anything more substantial than Cosmopolitan magazineÀ¢€¦ Surely not À¢€œMaslowÀ¢€™s Hierarchy of NeedsÀ¢€Â À¢€“ unless of course itÀ¢€™s about getting motivation for either shopping or embezzling money

  • Ric

    Sure-Fire Plan For Getting Any Nation Back On Track
    DonÀ‚´t SOCIALIZE YOUR LOSSES; just LOSE YOUR SOCIALISTS.

  • João da Silva

    dnbaiacu
    [quote]Remember MONEY RULES.[/quote]

    Yes, it does DnB and I am aware of it. But you have to understand that for the “MONEY” to rule, it has to keep the “serfs” happy and well fed (MaslowÀ‚´s Pyramid of needs.I bet you know about it).

    [quote]So you ARE on to something. [/quote]

    Yes, I am. Please do wait until the end of the “most important elections in the largest democratic nation in Latin America” and the “most powerful nation on earth”. Till Nov 4th.Just remember that B in BRIC is a brand new player in the Globalized economy and we are clueless as how to handle a crisis in an international scenario. A good point you mentioned is that we are not hearing much about the Arabs and your question is very valid!

    In order to understand what I am taking about, one (including our “rulers”) have to pay attention to the comments made by our esteemed bloggers like Ric, Forrest, Ch.C (who is[i] neutral[/i], Augustus, etc.For example read what Ric wrote:

    [quote]It was the USA that got everyone together, illustrating once again that the EU countries canÀ‚´t really solve anything as a cohesive unit.
    [/quote]

    This is the position of Ch.C and mine (too), though Ch.C is more vociferous . I have mentioned several times that the current crisis is going to pit US$ Vs Euro. As long as Brazil plays the game well it is going to come out not so bad.BUT….BUT…. I am afraid that our “Rulers” are going to blow up a golden opportunity and isolate again the country from rest of the world, by teaming up with firebrands like Chavez, Evo, Rafael,etc; Of course Cristina and Michelle know how to play the game better though the former has not read about MaslowÀ‚´s needs and probably she does not want to do so.

    Hope I was of some help to you in understanding Geo-Politics and Global Economics. 😀 😉

    Stay tuned.

  • Ric

    Keeping the Knee from Jerking is like Dr. Strangelove with his Wayward Arm. Try it Anyway.
    James Fallows quoted Susan Shirk last year, who wrote a book that calls China a “fragile superpower”. “When I discuss it in America”, she told Fallows, “people always ask, ‘What do you mean, fragile?'” “When (she discusses) it in China, “they always ask, ‘What do you mean, superpower?'”

    1. In this crisis, the BRIC nations went down like, well, a brick.

    2. It was the USA that got everyone together, illustrating once again that the EU countries canÀ‚´t really solve anything as a cohesive unit.

    3. Trying to bring Conspiracy Theories into this discussion only tends to obfuscate and confuse. If one is trying to sort thru the mess and figure out where to move assets, preconceived ideas of worldview only hinders and turns one into a Rushdooney.

  • João da Silva

    Augustus
    [quote]Unless the governments of the major emerging nations join the G7 nations in a summit designed to address the increasing financial meltdown, which is spreading like wild-fire across the planet, we are likely to undergo a global economic collapse far greater than the 1929 crisis, capable of generating riots, civil unrest, and possibly the breakdown of law and order (not unlike Somalia) in many developed countries, and throughout the Third World![/quote]

    According to the news, the representatives of G-20 nations are going to meet in Washington on Saturday to discuss this issue. Under the leadership of Mr.Mantega, our Minister of Finance. What surprised me was that IMF is predicting a growth of 9.7% and 7.9% for China and India in 2009, in spite of the crisis. The Brazilian growth is expected to be around 3.3%. Also, Mr.Lula is visiting Spain and India next week (or the week after next), obviously on a sales mission. China is a big trading partner and we should look towards them to keep buying our raw material and Soy, while India will continue to be the largest importer of our Ethanol.

    Therefore, the situation seems to be under control, unless Ch.C objects to my optimism. Until (or unless) he objects, I am not worried nor should you be. 😉 😉 8)

  • Ric

    Maybe this crisis was contrived in order to affect the US election at a critical moment.

  • João da Silva

    dnbaiacu
    [quote]All this is ,is a deliberate socialization of the world ecomony by HUGE international bankers. The LURE was GREED ..Pure and simple.. Easy money. They knew everyone would fall for it and NOT be able to pay up. Now THEY buy everything up [/quote]

    I was wondering when you were going to comment. 😉
    I suggest you go to https://www.brazzil.com and read the article written by John Fitzpatrick. Our friend Forrest has narrated a nice story about “Monkey Trade” which reinforces your view “The LURE was GREED” 😀

  • aes

    The bonfire of fear.
    The Real at $2.30 U.S. is about where it should be at Real at $3.5 or $4.0 would be something to talk about. The brief appearance of a Real at $1.5 was a time for Brazil to buy capital goods from abroad, which it did. It is inevitable that the dollar should lose value against currencies because of new trillions of dollars in deficit spending. It is also obvious that interest rates will go over 10% as this is what Buffet settled for with Morgan and GE for 5 years. Brazil banks pay 14%.

  • CH.C.

    More for vinnycarioca
    …..with your(my) impending cyclical bull rally ??????
    Yesterday I wrote about a TRADABLE RALLY…… NOT A CYCLICAL BULL MARKET THAT WE ARE ALL DREAMING FOR !!!!!
    A Tradable Rally is a move of around 5-10 % from the recent lows !!!!
    This could be done in 3 to 15 days….since we are hard stretched down !

    But in view of the Omaha Messiah…it should first go worse !
    Although HE has never cared about a 5-10 or even 20 % move….up or down !!!!
    And his long term timing was at times perfect but not all the times, therefore let say more appropriately…..VERY GOOD…OVERALL !!!
    His common sense is simply UNSURPASSED !!!!
    In the fable of the turtle and the rabbit……in my view he is the turtle !
    And in the race….the rabbit did not win !

    😀 😉 😀 😉 😀 😉 😀 😉

  • CH.C.

    To vinnycarioca !
    Capitulation ?
    Welll….hopefully we are in.
    What else could I say ?

    While you are sleeping (probably) the Nikkei is having the largest drop since 1987…down around 9 %. Asia is in a meltdown.

    But Vinny lets go back to some of our previous disagreements with YOUR taxes, Governemnt. real estate, debts…etc etc !
    I am not telling you to trust me or whatever. Because after all, there are not thousands but hundreds of thousands of different views ! Right ?
    But why not listening to the wisest man on earth….Warren Buffett ?
    Let me just repeat what I said so many times : The USA is the world best and largest emerging nation ! Smiles
    Viva the USA! They are the ones who saved the world more than once.
    Let me tell you this first, the EU is in far more deepest…. Àƒ§%&//Àƒ§….than than the USA !
    The EU deserves eggs on their faces ! I may tell you why in more details later, but in short THEY ALL CHEAT THEMSELVES AND THEY ALL CHEAT THE OTHERS AND NO ONE CARE ABOUT THE EU RULES AND LAWS AND NO ONE CARE ABOUT THE EUROPEAN CENTRAL BANK LAWS !!!!

    But more interesting for you is….Warren Buffett….that will explain you how HE sees things…with simple words !
    a very recent 54 minutes video that should hopefully change your views :

    http://www.charlierose.com/shows/2008/10/01/1/an-exclusive-conversation-with-warren-buffett

    😀 😉

  • VinnyCarioca

    Ric
    [quote]Go ahead, make my day and bet your capital on the bull recovery. It will help someone, somewhere, tho probably not you.

    Go back to the newspapers of the early thirties and count all the headlines, regular as clockwork, starting with “Now that the Depression is Over…..”[/quote]
    Hello Ric,
    No one is talking recovery. If you look back to the 30’s, you will see that there were very powerful cyclical rallies within a secular bear market.

  • Ric

    Surprised
    I was surprised that in tonight’s debate, with both candidates outdoing themselves in trying to fix the problem thru socializing the debt, no one mentioned the fact that this solution is not acceptable to Brazil. An obvious oversight.

  • Ric

    The Bull Rally
    Is probably just bull. It would appear that the current situation is the one Harry Browne predicted 30 years ago.

    If the tire is low on air, it can be re-inflated.

    If it is puctured, it can be repaired and re-inflated.

    But if all four tires are blown out, with holes in the tread and sidewalls, the car stops.

    Go ahead, make my day and bet your capital on the bull recovery. It will help someone, somewhere, tho probably not you.

    Go back to the newspapers of the early thirties and count all the headlines, regular as clockwork, starting with “Now that the Depression is Over…..”

  • VinnyCarioca

    Did I read this correctly?
    [quote]The American, crisis has already brought a loss of almost US$ 1 trillion to the United States alone, this is more than 30 times all the other crises put together and why are they heartbroken? Because Brazil hasn’t broken yet.”[/quote]
    Please tell me that I’m an idiot. Am I to understand that :
    1) We, Americans, want Brazil to break (with glee) ?
    2) That 2 trillion dollars of pension benefits and 401K values have not been lost the past year in the U.S.?
    3) Brazil is immune from the inevitable downside of U.S. and global credit expansion that inflated assets and commodities (ergo, the Brazilian economy) ?
    Believe me, sir, there is a tremendous amount of heartbreak.

  • VinnyCarioca

    CH.C
    I’m very much in agreement with you regarding the impending cyclical bull rally. What are your thoughts on capitulation? Have we reached it? Will tomorrow night’s expiration on the ban of short selling SELECTED financial stocks, here in the U.S., be part of the problem or the solution ?

  • Augustus

    POSSIBLE GLOBAL DEPRESSION // BRAZILIAN ILLUSION AND MISTAKE…
    Considering the huge amount of losses in the United States, the virtual state of bankruptcy in Iceland, the nationalization of banks in Great Britain, BENELUX and Germany (not to mention the tremendous drop in stock markets across the world), prior to reading the above editorial, my sole surprises were the apparent insulation of the Chinese economy along with Russiaˢ۪s ability to provide 5 billion US dollars package of economic assistance to the Icelandic government. However upon reading Ms. Nascimentoˢ۪s editorial, I found myself beyond the state of astonishment!
    [quote]À¢€œWhen we were eating the bread kneaded by the devil (had a hard time) nobody helped us, now that we are having a nice mortadella sandwich we don’t want to go back to the bread kneaded by the devilÀ¢€Â.[/quote]
    Such an absurd statement, issued while BOVESPA displays huge drops along with a massive devaluation of the Real represents nothing short of completely irresponsible.

    The illusion that BrazilÀ¢€™s sizable reserves in US currency will suffice to insulate the local economy from further À¢€œcontagionÀ¢€Â is not only naÀƒ¯ve, but extremely dangerous, as itÀ¢€™s bound to further exacerbate the insecurity of the Brazilian Market. At a time of unprecedented economic meltdown, pointing fingers, À¢€œsettling old scoresÀ¢€Â, along with use of economic band-aid (referring to the proposed Central bank dollar loans to local companies) is a shameful, negligent act! Furthermore, if we take into account the latest anti-American rhetoric coming from Brasilia, it would appear that Hugo Chavez À¢€œinfluenceÀ¢€Â upon Brazilian foreign affairs is finally becoming visible; thus dissipating the delusion of a Moderate, independent Left-Wing government in South AmericaÀ¢€™s largest economyÀ¢€¦

    According to a ReuterÀ¢€™s report, the global financial crisis represents a “wake-up call” that required broader cooperation across more countries.
    [quote]À¢€œThe Group of Seven rich nations is no longer effective and should be replaced by a steering group that includes emerging economic powers like China, India and Brazil, World Bank President Robert Zoellick said MondayÀ¢€Â[/quote]
    Unless the governments of the major emerging nations join the G7 nations in a summit designed to address the increasing financial meltdown, which is spreading like wild-fire across the planet, we are likely to undergo a global economic collapse far greater than the 1929 crisis, capable of generating riots, civil unrest, and possibly the breakdown of law and order (not unlike Somalia) in many developed countries, and throughout the Third World!

  • JON

    This contagion is contagious….. my Icelandic vacation on is off

  • João da Silva

    [quote]I Feel Sure[/quote]

    So do I, Ric.

    I might as well add that Ch.C is unnecessarily questioning about the influence our Prez has over Paulson and Benrnacke 😉

  • Ric

    I Feel Sure
    That the US executive and the Fed is taking this latest statement very seriously and probably even now taking steps to aline their rescue pacakages with Pres. Lula’s exhortation.

  • ch.c.

    ohhhhhh…and where Lula HAS a big problem :
    What about the Brazilian Pension Funds who were 70 % invested in Equities…AT THE TOP OF THE BOVESPA, despite the law that says equities are capped at 50 % for Brazilian Pension Funds ???????????

    Dont worry Brazilians, your government official in charge already said “we cant force them to reduce equities when the market is in free fall”
    Ohhhhhhh that was when your stock market was still much higher than these days !!!!!!!

    Bye bye bye bye Brazilians who have a pension fund ! Your pensions savings are melting down VERY FAST not only in equities prices but also on a loss of purchasing power in view of your currency collapse in such a short period of time !!!!!
    😀 😉 😀 😉 😉 😀 😉

    May be you should wake up !
    Your Government is saying daily….DONT LOOK HERE….LOOK ELSEWHERE !!!!!!!!!
    Just as pickpockets do !

    😀 😉 😀 😉 😀 😉

  • ch.c.

    “nobody came here to help, ”
    Short memory Robin the Liar ?????
    Never heard about World Bank, IMF, Brady Bonds ?????

    For those who dont know what were the Brady Bonds :
    Brazil Government Bonds in US$ issued in the early 1980s with partial US Government Guarantee !!!!!
    It was usually either 30 % of the capital guaranteed by the U.S Government or 100 % of the interests for the length of the borrowings. Some of these bonds had a 20 years maturity date, meaning 20 years of High interests guaranteed by the U.S. government !
    When Lula was elected there were still of these bonds outstanding !!!
    Thus the Cheater and Liar cant say…HE DOESNT KNOW !!!!!!!!

  • João da Silva

    [quote]Reacting to another day of sharp decline of close to 5% in the Brazilian stock market and a strengthening dollar against the domestic real, Brazil’s President, Luiz InÀƒ¡cio Lula da Silva, told reporters that his country this time will not have an economic package to deal with the global financial crisis and that Brazil doesn’t accept socializing the consequences of the crisis.[/quote]

    I have seen this movie before, when our “rulers” tell us that there will not be an “Economic Package” and a few days after this declaration, they slap it right on your face. I hope that our fellow Brazilians have not forgotten what happened in 1990. Also, remember that the real “Czar” of our economy is one that is famous for “Economic Package” , “Economic Shock” and other measures with fancy names.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

US Delegation for Inauguration of Brazil’s New President to Be Headed by Hillary Clinton

Hillary Clinton, the US secretary of State will head the United States delegation to ...

Pope Benedict XVI

Pope Gives Brazil Its Own Saint. It Might Help Keep Faithful

Pope Benedict XVI begins his first trip to Latin America, today, traveling to Brazil. ...

Brazil Joins the Very Closed Uranium Enriching Club

At the moment, when anyone mentions nuclear program, all eyes turn to Iran and ...

Brazil Approves Construction of Another Power Plant in the Amazon

Brazil’s Environmental Protection Institute (Ibama) has just authorized the construction of another hydroelectric power ...

Slow Pace: Brazil Surplus Grows to US$ 10.5 Billion

Brazilian exports totaled last week US$ 3.534 billion while imports amounted to US$ 2.326 ...

Brazil’s Patent Breaking Is No Theft, Says Doctors Without Borders

The non-governmental organization, Doctors Without Borders (MSF, Médecins Sans Frontières), denied that a possible ...

Brazil’s Foreign Debt Falls to US$ 165 Bi, 25% of GDP, Best Ratio in 30 Years

Indicators included in the Quarterly Inflation Report, released Wednesday, December 28, by Brazil’s Central ...

Nigeria Backs Brazil for WTO Presidency

Brazil received yesterday a thumbs-up sign regarding its candidacy for the presidency of the ...

Close Ally of Brazilian President Loses Political Rights

A Brazilian court suspended the civil rights of Sao Paulo’s former mayor, Marta Suplicy, ...

Brazil: China Lifts Soy Ban

Brazil should resume soon its shipment of soy to China, after a two-month-long embargo. ...