While Market Sinks Lula Calls Brazil Industrious Ant Ready for Bad Weather

    Brazilian president Lula

    Brazilian president Lula This whole year the Brazilian stock exchange hadn't seen a tenser day than this Thursday, August 16. Hit by the same fever that has struck foreign finance markets elsewhere, the Bovespa (São Paulo's stock exchange) fell close do 9% during yesterday's trade session ending the day in a more modest 2.58% drop.

    At its lowest, with a 8.71% decline, the slump was compared to the collapse of September 11, 2001, the day the New York World Trade Center suffered a terrorist attack. On that day, the Bovespa went  down 9.18%, which was not as bad as the 10% + of January 1998, in response to the cambial devaluation imposed by the Fernando Henrique Cardoso administration.

    Despite accumulating losses of 17.4% since the July 19 record high, the Ibovespa, Brazil's stock exchange's main index is still 5.8 in the black for the year. 

    Most of the commotion has to do with the US shaky mortgage market including trouble with Countrywide Home Loans, America's biggest independent mortgage lender, which might even have to file for bankruptcy, according to a few analysts. Brazil also reacted to the US Commerce Department announcement that the building of new houses fell 6.1% in July, the lowest rate since January 1997.

    The Brazilian currency, the real, is also suffering a beating vis à vis the dollar. The greenback went up 3.1%, yesterday, reaching 2.094 reais, the highest level of the American currency since March 14. One dollar was sold for up to 2.136 reais during the afternoon.

    According to a just-released study by Economática, a Brazilian consultancy firm, companies with capital in the Bovespa have lost US$ 209.7 billion since the São Paulo stock exchange reached its peak July 19, when the Bovespa made it to 58.124 points. This indicator has already fallen 17.3% since.

    For Brazilian President, Luiz Inácio Lula da Silva, Brazil has nothing to fear since the country like the fable's "little ant has been preparing itself for this financial winter."

    "I think that we will get out of this with more strength. I hope that the American real state market solve its crisis so not to affect other countries," said Lula.

    Lula reminded Brazilians that if the need arises, Brazil has the biggest volume of reserves of its history, about US$ 158 billion. He also stressed that there are more dollars getting into Brazil than leaving it.

    "And for now we are tranquil. There is no reason for us to say that we are not tranquil," he insisted

    The Brazilian president also sees in the current slump a moral lesson to those who are too greedy. For him the most affected are the pension funds, which were trying to "make easy money." He who tries to make money without any effort, should think of himself as being in a casino," said Lula. "He can win but he can also lose."

    Lula told reporters that he is following closely what is happening in the rest of the world, especially in the United States. And added: "As Brazil didn't bet on getting easy money, we prepared a firm foundation, in other words, we were piling up money all this time."

     

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    • Show Comments (37)

    • João da Silva

      AES
      [quote]It takes a very long time for a super tanker to turn or to reach maximum speed, or to stop. None the less a super tanker is a vast economic entity. It takes time to build and master such a craft.
      One must begin with a competent captain, navigator, engineers, comunication staff, radio and sonar, as well as all the myriad other positions on such an economic ship of state as Brazil. As Brazilians come to understand what Brazil is relative to other nations they will begin to act appropriately and by consequence effectively. Such a ship of state is not easily mastered.
      [/quote]

      An apt analogy and the Brazilians will have to understand quickly in order not to miss the opportunities the globalized economy offer.Once we understand,we will know how to choos a good captain,officers and crew for the super tanker. I liked you positive note. That is the reason why I am against any form of press censorsip!

      btw, what happened to our friend “Professor”? Decided to abandon the Super Tanker and stay in Portugal?

    • AES

      The Brazilian ship of state is a super tanker and not a pleasure yacht.
      The purpose of my citing was to demonstrate that indeed statistics can be skewed to demonstrate any number of points. That the GDP of Brazil is very low is a given, but in understanding the greater reality of the economic state and prospects of Brazil I researched what the amounts of money Brazil was dealing with vis a vis all other countries. When a country is as large as Brazil both in mass and population its economic course may be made analogous to a super tanker and the economy of Switzerland to a ski boat. Though one may go faster the smaller craft is both easier to build and to drive. It takes a very long time for a super tanker to turn or to reach maximum speed, or to stop. None the less a super tanker is a vast economic entity. It takes time to build and master such a craft.
      One must begin with a competent captain, navigator, engineers, comunication staff, radio and sonar, as well as all the myriad other positions on such an economic ship of state as Brazil. As Brazilians come to understand what Brazil is relative to other nations they will begin to act appropriately and by consequence effectively. Such a ship of state is not easily mastered.

    • João da Silva

      AES
      [quote]The world’ largest economies: [/quote]

      With all due respect to you, I must remind you that the ranking of the economies is very skewed. It doesnt really show the income distribution of the polpulation. I dont think that one can divide the GNP of a nation by the population and say that the country is doing well. For example, China, Brazil and India are ranked in the list. But look at the income distribution. All 3 countries have some who are getting richer everyday,the middle class getting screwed and poor remaining poor and (not complaining). Brazil has no business to be classified as “emerging nation”. You know that we have large land and many natural resources more than that of China,India,Switzerland and many other countries listed. My question: Why the heck,are we still behind the developed nations? This is an interesting issue to be discussed. It appears that we have lost our balls since April 21,1985 and have gone back in centuries,when the noblemen from the court of Portugal came here to suck Brazil dry to take back their loots back to Lisbon.

      The defense of Brazil rests its case. Now, it is your turn to debate.

    • AES

      The world’ largest economies: http://www.corporations.org/system/top100.html Brazil is 8th Switzerland 18th.
      It is interesting Ch.c that Brazil is ranked 8th and Switzerland is 18th. It is the size of the economy that is relevant nothing else, for all things come from that.

      Rank Country / Corporation GDP / sales ($mil) THE SIZE OF THE ECONOMY
      1 United States 8,708,870.00
      2 Japan 4,395,083.00
      3 Germany 2,081,202.00
      4 France 1,410,262.00
      5 United Kingdom 1,373,612.00
      6 Italy 1,149,958.00
      7 China 1,149,814.00
      8 Brazil 760,345.00
      9 Canada 612,049.00
      10 Spain 562,245.00
      11 Mexico 474,951.00
      12 India 459,765.00
      13 Korea, Rep. 406,940.00
      14 Australia 389,691.00
      15 Netherlands 384,766.00
      16 Russian Federation 375,345.00
      17 Argentina 281,942.00
      18 Switzerland 260,299.00

    • João da Silva

      ch.c
      [quote]No doubt in my mind that your then government took you for a big big big ride and how they smiled !
      Because of course, with their own money, they smuggled it in safer places and safer currencies…..such as in
      NYC and Miami banks, and including swiss banks !
      They even took for themselves……ALL the foreign currencies !

      And Joao, I also remind you that by 1995…….SP state and many others were TOTALLY BANKRUPT !
      And they had to have their debts taken over by the federal government.
      [/quote]

      You are right again and on the spot. The people like me have long memories .It is disgusting to observe that everytime a President,Governor or Mayor leaves the office, they leave a large debt . Of course, you must know that PT administration wiped out the coffers of RS also.

      Also,needless to remind you of all the bloody “Planos” after 1985 to stabilize the inflation rate and the money swallowed by the hyennas.

      Still, I think you are a Brazilian moved to Switzerland a long time ago 😉

    • ch.c.

      allo….allo….. AES …where are you with your maths on patents per 100’000 capita ?
      Cant you easily see that Switzerland ranks NUMBER ONE ???????????

    • ch.c.

      ooops…..
      They even took for themselves……ALL the foreign currencies….of your central bank and treasury dept !
      After all they were not that idiots ! Just think of it !
      😀

    • ch.c.

      Joao….
      No need to go that far !
      Just look at what the price of your Brazilian Treasury bonds did….when you had hyper inflation years of well over 1000 % in the early 1980’s !

      No need of French “velhinhas” ! Every brazilian was a “velhinhas” !

      No doubt in my mind that your then government took you for a big big big ride and how they smiled !
      Because of course, with their own money, they smuggled it in safer places and safer currencies…..such as in
      NYC and Miami banks, and including swiss banks !
      They even took for themselves……ALL the foreign currencies !

      And Joao, I also remind you that by 1995…….SP state and many others were TOTALLY BANKRUPT !
      And they had to have their debts taken over by the federal government.

      You see in Brazil they always find a quick solution : cut 3 zeros to the currency as I said, sometimes somewhat less.

    • João da Silva

      ch.c
      [quote]It was not on currency changes but ON Brazilian currencies changes ![/quote]

      I was talking about [i]Brazilian Currencies[/i] and you were the one who raised this issue first and all I said was that your narration was 100% correct.

      btw, if you remember the story of the French “velhinhas” who invested in Brazilian Treasury bonds and lost all the money in the 1930s,narrate it also!! This may send the foreign investers fleeing BOVESPA 😉

    • ch.c.

      To Joao…again !
      “your narration of the history of currency changes,cutting Zeros,etc; is 100% correct”

      It was not on currency changes but ON Brazilian currencies changes !!! Quite a difference.

      As to the Swiss Franc…….did you know that in the whole of the 20th century…….NOOOOO currency was stronger than the
      the Swiss Franc ???? True !
      If you want a lesson or two also on currency stability for the very long term….just ask to Switzerland !
      We beat you all, hands up, hands down, hands in the pocket and finger in the nose too !!!!!

    • ch.c.

      And to AES with your numbers of patents !
      You are great.
      Now do the maths on a per 100’000 capita !!!!!!!

      Laugh…..laugh…..laugh……laugh !

      Talking about GDP , China and Brazil both have a far higher number than Switzerland.
      Still that doesnt make Chineses and Brazilians more wealthy than Swisses !!!!!!
      Otherwise China is also already for a long time more wealthy than Brazil, but not Chineses !!!

      I am waiting your maths on patents per 100’000 capita !!!!!!

      LAUGH……..LAUGH……LAUGH !!!!!!!

    • ch.c.

      The Brazilian government had the intelligence to buy enormous reserves of dollars.!!!! ENOURMOUS ???????
      Today your foreign exchange reserves stand at US$ 1000.- per capita !
      Switzerland at US$ 6000.- per capita !

      Ohhhh and if you believe that Brazil has 186 billion US$ reserves you are dead wrong because the amount is in several currencies.
      And if you have most of your reserves in US$ you just proved how bad your Treasury and Cemtral bank is. You were buyying a currency that depreciated almost on a weekly basis. Had you bought more Euros….by now you would have more US$ equivalent !
      But idiots have not realized it …….yet !!!!!!!

      Brazil has everything in its ground nut nothing in its mind ! Switzerland has everythingin its mind but nothing in the ground.
      That is exactly what makes the difference between a poor developing country and a wealthy advanced country !!!!!

      You see Joao…..Japan is not any different than Switzerland ! This is what created their wealth !

      It still remains that everyxthing in your ground is financed by foreign investors and not by Brazilians. You dont even have enough money to have a decent infrastructure, healthcare and education !

      And as I said in a previous forum, Switzerland with a population of 7,5 millions export more on a total country basis than Brazil with a population of 186 millions.
      Thus if you want a lesson or two of how to export more…..ask to Switzerland and not to Brazilians.

      We have so much of nothing that we dont even have a sea access ! Interesting that in this case we can both export and import more than the “giant” Brazil !!!!!!

      On a per capita basis we beat you by a ratio of over 20 to 1 on both exports and imports !!!!!! And that is wether you like or not !

      Continue to swim in your ocean of dungs ! We will continue to swim in our clean and developed country !
      And that is too….wether you like or not !

    • AES

      Switzerland 9th of top ten Swiss patents. . .hmmm
      Number of PCT applications

      Percentage share of total

      United States of America
      39,250 35.7

      Japan
      16,774 15.2

      Germany
      13,979 12.7

      United Kingdom
      6,090 5.5

      France
      4,723 4.3

      Netherlands
      4,180 3.8

      Republic of Korea
      2,947 2.7

      Sweden
      2,491 2.3

      Switzerland and Liechtenstein
      2,379 2.2

      Canada
      2,102 1.9

    • Ric

      Oh, were we discussing them?
      743.

    • João da Silva

      Ric
      [quote]In 2006, Switzerland registered 1388 patents with the US Patent Office, Brazil 148.
      [/quote]

      And China?

    • Ric

      In 2006, Switzerland registered 1388 patents with the US Patent Office, Brazil 148.

    • João da Silva

      [quote]If you have a chinese watch…..will see how long they last and how waterproof they are !!!!!!
      [/quote]

      The last time I looked into one with batteries, it didnt function. Didnt have to throw into the ocean to find out if it was water proof.

      [quote]Chinese watches are for the poorest brazilians while Rolex, Piaget, Breguet. etc etc etc are for the wealthiest on earth.
      [/quote]

      In spite of being a very poor Brazilian, I opted not to buy the Chinese watch. Rolex,Breguet,Omega,etc; are for our first family and their loyal followers.

      [quote]Everything we produce is of Swiss quality, meaning higher quality and higher price.
      [/quote]

      If I were you, I wouldnt be too sure about it.

      [quote]Even Brazilian bottled water produced by NestlÀƒ© in Brazil and sold to Brazilians command a higher than average selling price.
      [/quote]

      Menos,Menos….Here, you totally blew it. Just remember that Brazil is a huge country with lots of natural springs and especially the ones who live in the South can drink water off the fawcetts,really dont give a shit about the brand NestlÀƒ©. We do buy mineral water,based on price but not on brand name. If your rich banker friends want to buy NestlÀƒ© water,based on the brand name, it is their perrogative.The chocolates marketed under NestlÀƒ© brand is too sweet to the taste of poor Brazilians like my good self and kills the taste of Cacau. You might be surprised to hear that the best chocolate I have recently tasted is AMERICAN. Made by GHIRARDELLI in SF. Of course, you know that the chocolates can be made at home too, though cumbersome.

      [quote]Like the Chinese Prime Minister said a while ago publicly while in a tour in the EU : dont forget China must produce 800 millions pair of socks with low margins….to buy 1 Airbus !!!!!!!
      [/quote]

      The Chinese Prime Minister was very polite, trying to sell his socks and worthless watches and you are quoting him? I hope Rolex doesnt outsource watch manufacturing to PRC and sell them to “rich Arabs,Asians and Latin Americans”.

      ch.c, you are very good in Stats about Brazil and I appreciate the info.But you have to understand that there are more intelligent Brazilians than the entire population of Switzerland in this world (considering the population of our country).I understand your effort to project the Brand name of “Switzerland” and say that it is the best in the world.But it demonstrates blind nationlism, which I think a smart guy like you should avoid (if at all you were born in Switzerland)

    • AES

      Switzerland is irrelevant Ch.c just doesn’t know it.
      Brazil has more gold, diamonds, oil, platinum, copper, agricultural and more beef than Switzerland. You can put Switzerland in a small corner of Brazil. Brazil has infinite upward potential, Switzerland has reached its potential. Brazil can buy and sell Switzerland. Switzerland is thousands of years old Brazil buy hundreds. Brazil has a future Switzerland has a past. Switzerland is like a Swiss watch, much ado about nothing. It is a tedious bit of micro engineering that does nothing more than tell the time. The only music Switzerland has is the Alpine horn. Switzerland is a dying geriatric country that has reached the appex of its place in history, its complicity with Nazi Germany and is now in a state of decline. Switzerland is irrelevsnt, Ch.c just doesn’t know it.

      Switzerland sells one Rolex for 10,000 and nets 2,500. China sells 100,000,000 socks with a net profit of $.50@ for a net profit of of $500,000. There are more people on the planet that want socks than Rolex watches. China has an aerospace industry that produces rockets capable of reaching Switzerland. The timing devices necessary to achieve such precision are equal to Rolex, Piaget, or Baume Mercier. How many people in Switzerland own a Rolex. How many people in the world own a pair of Chinese socks. You buy a Rolex watch once in your life. You buy socks thoughout your life.

    • ch.c.

      “aversion to Swiss made watches and clocks”
      If you have a chinese watch…..will see how long they last and how waterproof they are !!!!!!

      Keep in mind too that Chinese watches dont compete at all with Swiss watches.

      Chinese watches are for the poorest brazilians while Rolex, Piaget, Breguet. etc etc etc are for the wealthiest on earth.

      Try to sell a Chinese watch to a wealthy Arab, Asian, or Latin American, he will throw you out of the window !

      Everything we produce is of Swiss quality, meaning higher quality and higher price.

      Even Brazilian bottled water produced by NestlÀƒ© in Brazil and sold to Brazilians command a higher than average selling price.

      We dont produce as Brazil does in agriculture and China in cheap goods with low added value.

      End results ? Look at the wealth per capita in China, Brazil and Switzerland.

      It is not quantity but quality that has a higher margin.

      Just think of how many tons of soyabeans Brazil has to sell for the equivalent of one Rolex !
      Just think of how many tons of sugarcane Brazil has to produce (around US$ 20.- per ton, price paid to farmers) for the equivalent of one Piaget, more expensive than Rolexes !!!
      And worse yet : just think of the average wage of a Brazilian sugarcane worker, and the average wage of a even non skilled worker in watches manufacturing plants.
      Ratio ? At least 15 to 1 ! And with 50 times less sweat !!!!!!
      Just for your info….brazilians idiots…..a non skilled worker at Rolex earns Swiss Francs 4200.- / 4500.-per month as a starting salary ! True if you dont mind ! Or more than 6500.- BRL despite your recent currency appreciation !!!!!

      Better yet, not only Rolex still makes tons of profits but they have a workers shortage…..so high is the demand worldwide !
      They have no reason to reduce the price by 50 % like your sugar price did in the last 18 months !!!!!!

      Hey hey……..Brazilians will remain idiots for another several centuries.

      Continue producing your sugarcane, and we will continue our high end watches so much in demand !

      In my view you should even triple your ethanol production, so that it will finally compete with oil !!!!!!

      Like the Chinese Prime Minister said a while ago publicly while in a tour in the EU : dont forget China must produce 800 millions pair of socks with low margins….to buy 1 Airbus !!!!!!!

      Similar comments are appropriate for what Brazil produces amd what Switzerland produces as stated earlier !!!!!

    • AES

      Please just name ONE currency that fell more than the Brazilian currency against the US$ …in the recent small U.S. crisis !!!!!

      The currency of the validity of your perception.

      The Real has increased in value ‘in the recent small U.S. crisis’. The Brazilian government had the intelligence to buy enormous reserves of dollars. When the Real falls in value the reserves increase in value. Criticism of current Brazilian global market positions is flawed. References to previous Brazilian economies is equivalent to comparing the current Chinese economy with the Chinese economy of 1989. Your reasoning is specious. There is a phenomenon of economic critical mass. Events prior to this event are not the same as those after. The events are not linear, but quantum. Ch.c looks to the past to ascertain the present, but lacks the resources to perceive it. Ch.c’s perception is provincial. It is a flawed perception that fails to incorporate into his calculus the differences between all other previous economies and the current economy.

    • João da Silva

      ch.c
      [quote]When America has a flue….Brazilian stand near an hospital !
      When America has more than a flue…..Brazil needs a cash injection !

      But America did not have a flue….recently…..they just sneezed !!!!
      [/quote]

      Sometime I get the strange feeling that you were Brazilian born Swiss and read several on line newspapers! Just read the following link,if you havent done it already.

      [url]http://www.estadao.com.br/estadaodehoje/20070819/not_imp37091,0.php[/url]
      btw, your narration of the history of currency changes,cutting Zeros,etc; is 100% correct.

      Would be interesting to receive comments from others after reading the article I cited above.

      Brazilian Dude, take the lead.

    • ch.c.

      “Remember, only long term investors make money, traders generally lose.”
      Joao….do your maths again….for the last 60 years in Brazil long term “investments” !

      You cut 3 zeros to your currency……4 times !
      And when you pegged your currency to the US$ in 1994, you FIRST devaluated by a factor of 2,75 or 63 %.
      Later, in 1998/1999 you could not even hold that peg, thus you floated and devaluated again by a factor of nearly 4 or 75 % !

      And Brazilians complain now that your currency is “too strong” because it gained a very small fraction of what it lost just earlier !!!!!
      Reality being that your currency is still down 50 % from where it was in 1998. and this against the dollarwhich has been weak in the last few years against ALL currencies except a few such as the Venezuelan currency.

      Yesssssss Joao……do your maths in Brazilian currency (whatever its various names were previously) !

      Sad Reality is that you need several hundreds trillions of your 1940 currency to make ONE 2007 BRL !!!!!!

      Why do you think Brazil nickname is…..A BOOM AND BUST ECONOMY ?
      Is this time different as you want us to believe ? but Brazilians told us the exact same thing in the past at every peak of their booming cycle….just before your near many currency and economical collapses !!!!
      Why do you believe that currency smuggling is ALWAYS a one way practice ?????

      Foreign Speculators take their time to come in….but go out much faster than they came in !
      You just saw it…recently, once more !

      Please just name ONE currency that fell more than the Brazilian currency against the US$ …in the recent small U.S. crisis !!!!!

      I am afraid there is NONE ! Your currency fell by over 15 % ! A world record….again….in around 2 to 3 weeks !

      When America has a flue….Brazilian stand near an hospital !
      When America has more than a flue…..Brazil needs a cash injection !

      But America did not have a flue….recently…..they just sneezed !!!!

    • ch.c.

      ooops….not finished !
      and your central banks saw and did NOTHING to prevent such ILLEGAL outflows…..despite there was daily estimates of money leaving the country !!!!!

      Ohhhhh….but Palocci….in 2005….needed just a few minutes…to discover…that one low paid worker had a Reals 30’000.- account
      in a Brazilian bank !
      Bad luck for Palocci, it was legititimate money !!!!!!!

      laugh……laugh….laugh…. !!!!!

    • ch.c.

      ahhhh….ahhhhh….ahhhh…ahhhhh !!!! What a joke and short memories Brazilians have !
      In April 1998 your foreign currencies reserves stood at US$ 84 billion ! A record too…..at that time…..and you also said you could withstand some financial shocks !
      At that time ayour economy was smaller than today and your currency still pegged to the US$ !!!!
      Today a 2007 dollar is not worth what it was in 1998.

      Guess what !

      This was the exact time when your currency started its devaluation by over 70 % over the next 4 years !!!!!!!!!!!
      And from 1998 to 2002 over Brazilians Reals 150 billion have been converted mostly to US$ and smuggled illegally into
      US banks.

    • forrest Brown

      lula is chaseing a cat
      how does a steel worker from the north
      get given a degree in eather field he has .

      ana p must have been in the same class room as him ???

    • brazilian dude

      Yup.
      ‘Cause if we don’t do that, we will “top,top,top”…

    • João da Silva

      Brazilian Dude
      [quote]so if I was ever attacked by this “Quantum Mechanics” or “Nuclear Physics”, never really had the time to check…
      [/quote]

      I understand that your time is precious.Have no fear,our C-in-C will explain to us all about these in due course of time. If he doesnt have time, he may ask Martinha to do so. Until the full details are revealed, your attitude should be “relaxar e gozar” 😉

    • brazilian dude

      Maybe…
      I’ve come across some creature with those names, but in Xingu the R.O.E. are to take no chances, shoot first and never mind the questions later, so if I was ever attacked by this “Quantum Mechanics” or “Nuclear Physics”, never really had the time to check…

    • João da Silva

      AES
      [quote]When one speaks of Lulu’s erudition one has to keep in mind that even a broken clock is right twice a day.
      [/quote]

      You are right as usual,because of your aversion to Swiss made watches and clocks.These days, the clocks are broken,due to the fact that the Chinese furnish them without batteries.It costs less to buy a clock than batteries and so when we buy a clock, we keep it “broken”.Never mind.We dont need clocks,whether broken or working,as long as our cities have them all over (at least in the city where I live. They show the time as well as the temperature).

      I havent heard LuluÀ‚´s lecture on Quantum Mechanics nor Nuclear Physics. Are these two things a new kind of diseases ? May be he will enlighten us further. Hope he doesnt increase CPMF in order to treat these diseases.May I assure all the bloggers that during the last medical check up I had, the doctors declared that I am free of the viruses called “Quantun Mechanics” and “Nuclear Physics”

      I am sure that the “Brazilian Dude” is also free of these two deadly viruses ,in spite of his spending quality time in Xingu.

      It is all an American invention,as usual and Binlu walked right into their trap.Never vote for him again.

    • AES

      Have you heard Lulu’s lecture on quatum mechanics? Lulu was never a good student, his doctorate in nuclear physics is hardly spoken about. His published works in comparative anthropology, astro physics and organic chemistry are equally obscure. When one speaks of Lulu’s erudition one has to keep in mind that even a broken clock is right twice a day.

    • Brazilian Dude

      theman..
      Mr Osama Bin Lula (known around here as Binlu – a name by JoÀƒ£o, remembering Daslu ;-)) is just shooting the breeze.He knows that what has been enabling him to claim success on the home economic front is the international context, and he is scared shiitless of things changing.If a real crisis hits us, his poor voters will suffer greatly, for all they got from him was alms, not jobs or training or qualification.His ratings will plummet.
      So he says the only thing he can say: all is well, nothing is amiss, and that ice on deck just happened to be there…why don’t you play with it while the band livens things up?
      Even knowing otherwise, he can’t say it ’cause that would be political suicide. And he can’t stay quiet either…
      Dammned if you do, dammned if you don’t…
      Fuuckin’ weasel.

    • João da Silva

      theman
      [quote]Perhaps the adage “Where there is a crisis, there is always an opportunity” should be reformulated for Brasil. “Where there is opportunity, there is always a crisis.”.
      [/quote]

      Welcome to this Mad,mad,mad blog 😉

      [quote]And unforunately, those with whom Lula’s popularity is high–largely the poor–have no idea what a financial market is. The closest they will ever come to a market is Bradesco.
      [/quote]

      Right on BullÀ‚´s eye (does this expression exist still?). btw, dont remind me of Bradesco 🙁

      On a serious note, AES and I were sarcastic too.

    • João da Silva

      AES
      [quote]When it is all said and done, the deep bottoms made in many a stock will not even be noticeable on a long term chart. Remember, only long term investors make money, traders generally lose.
      [/quote]

      AES, you are teaching bad things to our Prez. He may borrow your quote in his next Press Conference,without paying you for your IPRs 😉

    • theman

      “He is not asking people like us to believe. His discourse was directed to those among whom his popularity rating is very high!”

      I was being sarcastic. In reality, politicians should avoid making comments on gyrating stock markets. They are subject to forces beyond political control and in most cases beyond political comprehension.

      And unforunately, those with whom Lula’s popularity is high–largely the poor–have no idea what a financial market is. The closest they will ever come to a market is Bradesco.

      On a related note, I am constantly amazed by how quickly everything negative in Brasil is labelled a “crisis” by the media here. Perhaps the adage “Where there is a crisis, there is always an opportunity” should be reformulated for Brasil. “Where there is opportunity, there is always a crisis.”.

    • AES

      At times like these it is easy to make emotional, irrational decisions. It is a time when one should stretch to buy all one can but one feels like one is trying to catch falling knives. To make the big money on the way up, one has to be willing to hold on during the tough times.

      All the great investors tell the story that the time to buy is when there is “fear in the market”, “blood in the streets”, “capitulation in the air”. That is where we are today. The media talks and talks about the sub prime housing market. The fact is that the total loss in the housing market will be a small number. More people are able to afford a second home today than ever before in history. The demographics are compelling. There are more people at prime age to buy a second home than ever before in history. Ironically, the real problem is that the world economy is a little too strong for its own good. With the world economy strong, even Japan, which is filled with old people, is growing again. This growth means that 1% loans are going the way of the dodo bird. As speculators around the globe are searching far and wide to raise cash to pay back prior loans made, they punish one asset class after another. Smart money is holding in even though no one can say how long this repricing will last. When it is all said and done, the deep bottoms made in many a stock will not even be noticeable on a long term chart. Remember, only long term investors make money, traders generally lose.

      [url]http://usmarket.seekingalpha.com/article/44819[/url]

    • João da Silva

      theman
      [quote]Of course, we should believe that Brazil, for decades one of the world’s shakiest and worst run economies, is now on a more solid footing than the rest of the world. Of course, we should believe that Brazil can shake off what the U.S. economy–the world’s biggest and strongest–may not be able to. And, of course, we should believe that Brazil can avoid a threat to the global economy for the first time in its history. Nonsense![/quote]

      He is not asking people like us to believe. His discourse was directed to those among whom his popularity rating is very high! There is an ancient Chinese proverb: Where there is a crisis, there is always an opportunity. In his case, an opportunity to climb up further in his rating !

    • theman

      A man who knows nothing
      Once again Lula aptly demonstrates his ignorance and inability to understand just about everything.

      Of course, we should believe that Brazil, for decades one of the world’s shakiest and worst run economies, is now on a more solid footing than the rest of the world. Of course, we should believe that Brazil can shake off what the U.S. economy–the world’s biggest and strongest–may not be able to. And, of course, we should believe that Brazil can avoid a threat to the global economy for the first time in its history. Nonsense!

      The fact of the matter is that even as Lula and the government continue to insist that the Brazilian economy is strong, it has managed to undperform all other significant emerging economies. And growth here has little to do with any made-in-Brazil factors; instead, the economy grows because the global economy grows. And as the global economy is threatened, so is the Brazilian economy.

      When the U.S. prime mortgage problem subsides, Brazil may see its fortunes improve. If the crisis continues, Brazil remains more vulnerable than most economies. That’s a fact–and somehow thinking that because the crisis starts in the U.S. it won’t have a lasting impact on Brazil is just plain wrong. Brazil will always remain vulnerable to global economic forces because its economic performance is dependent on the health of the rest of the world.

      Investors know this, and that is why they are fleeing high-risk countries such as Brazil.

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