Brazil Lula Blames Global Instability on US’s Casino Mentality

    Casino in Las Vegas, US

    Casino in Las Vegas, US The Brazilian economy expanded 0.8% in the second quarter over the first quarter reported Wednesday, September 12, the IBGE (Brazilian Institute of Geography and Statistics). And there was a 5.4% increase over the same period a year ago.

    However market analysts were expecting a 1.2% expansion over the first quarter and 5.8% over the second quarter of 2006.

    But the Economic Research Center from the powerful São Paulo State Federation of Industries, FIESP, said that the second quarter GDP figures coincide with the level of activity of the manufacturing industry, which was released last week.

    "The GDP statistics came as no surprise, it was rather a confirmation of the good performance the Brazilian economy is undergoing", said Paulo Francini, head of the FIESP Research Center.

    Francini estimated that South America's largest economy would end 2007 with a 5% expansion which is in line with the activity of the manufacturing industry.

    The Brazilian economy so far has proven to be resilient to the US housing crisis and global credit re-pricing and has been recommended by investment banks as a safe and profitable haven for investors.

    Brazilian president Luiz Inácio Lula da Silva currently on a European tour said that Brazil can sail through current turbulences without major setbacks because "our fundamentals have never been so strong", and "international reserves stand at US$ 160 billion."

    Nevertheless Lula blamed much of the current global instability to US financial policy "which allowed investment funds, hedge funds to purchase high risk papers and resell them acting as if they were in a casino. And they lost, and we're not prepared to tolerate that developing countries should pick up the bill of a gamble in which we did not participate."

    Lula insisted it is the US government responsibility to address the sub prime mortgage crisis, "because they helped the creation and growth of those financial instruments and unregulated identities that have led to the current situation" and called on the Central banks of the industrialized world to act accordingly ensuring the crisis does not spill to the developing world.

    Mercopress

    Tags:

    • Show Comments (8)

    • Ric

      Well, I guess a “casino mentality” is better than no mentality. From Jean to Jackpot, there are few fools in the casino business.

    • João da Silva

      Ric
      [quote]Am I missing something[/quote]

      Yes, you missed seeing the picture of our Prez in Helsinki where he made this statement! It was published in the following link in “Estadão”:

      [url]http://www.estadao.com.br/economia/not_eco49085,0.htm[/url]

      For some unknown reason the original picture was replaces with another. I did save the picture since I tjhought it was just hilarious,though I am unable to paste it in this thread for some technical reasons.

      The news item and the picture gave the impression that he was making the statement under the influence of Ethanol!! I was just sarcastic.

      Seriously talking, if the U.S. enters into a recession, it is going to drag the rest of the world,including Brazil, along with it. We have seen this movie before. No point in pretending otherwise.

    • Ric

      Not in the least
      Am I missing something? Glad you´re proud. But what would be an alternative to suffering along with the rest of the world if the US enters a ressession? Can one legislate out of it? Declare it invalid? Say “Não doeu”?

    • João da Silva

      [quote]I saw the President give that speech on TV and wondered, what are the alternatives to “tolerating” the situation that he has at his disposal? [/quote]

      I saw the picture of our Prez in Helsinki,published in “Estadão” and I was very proud of him. Ric, you want to contest me? 🙁

    • PT

      He must have just gotten off the phone with Chavez.

    • conceicao

      There is nothing that Brasil needs more for development than a fully functioning mortgage market capable of funding the marginal home buyer.

    • Ric

      I saw the President give that speech on TV and wondered, what are the alternatives to “tolerating” the situation that he has at his disposal?

    • jose

      blame the americans
      Blame the americans, thats what brazilia politicians always do…..fundamentals never been so good? hmmm, what planet are you on?

    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

    Brazil Telecom to Offer New International Video Goodies

    Brazil Telecom and Claxson launched in Brazil the Turbo Video VOD (Video on Demand) ...

    Brazilian soybean

    For Brazil a Forecasted Soybean Bumper Crop Is Not Good News

    A forecasted soybean bumper crop in South America in early 2010 will ease world ...

    Brazil and 17 Countries Unite to Get Better Prices for AIDS Drugs

    After three days of debates last week in BrasÀ­lia, the capital  of Brazil, governmental ...

    Brazil Offers Easy Credit to Poor Northeast Farmers

    In the first half of this year, Brazil’s National Program for the Strengthening of ...

    Lula speech

    Lula Ridicules Free Market and Sees Self as Don Quixote Amid Cassandras

    Commenting on the international economic crisis during a trip to Rio, Brazilian president Luiz ...

    Brazilians, Get in Line! Interview Appointment for US Visa Takes 148 Days

    Besides all the usual hassle they are already put through, Brazilians willing to travel ...

    Brazilian school bus

    Stimulus Package: Brazil Gets US$ 4.2 Bi to Buy from Ambulances to Missile Launchers

    Faced with a sluggish economy, the Brazilian government announced the expansion of the Accelerated ...

    Sadia, Perdigão, Brazil Foods

    Now, Brazilian Companies Are Rushing to Invest in Arab Countries

    Brazilian companies’ interest in the Arab countries is on the rise. More and more ...

    Getting ready to work

    Moody’s Lowers Brazil’s Credit Rating, But Doesn’t Anticipate a Double-Dip Recession

    Brazil’s economy is clearly growing again after a severe recession and will be shielded ...