Brazilian President Makes Fun of Wall Street’s Super Brains

    Brazilian president Lula

    Brazilian president Lula The President of Brazil, Luiz Inácio Lula da Silva said on Thursday, September 18, that he has watched with "sadness" the collapse of Wall Street firms that made economic policy recommendations in emerging markets "as if they were the super intelligent and we were the poor souls."

    "Important banks, very important banks, that spent their lives giving advice about Brazil and what we should or shouldn't do are now broke," news agency EFE quoted Lula da Silva as saying in a speech in southern Brazil.

    Lula criticized Wall Street firms for treating financial markets like a "casino" and for relying on "speculation" to make money. He said the Brazilian economy is well-equipped to weather the global crisis and would suffer "very little" even if the US sinks into a deep recession.

    Earlier in the week Argentina's Cristina Fernandez de Kirchner adopted a similar stance during a political rally. "While the First World collapses" because of the international crisis, Argentina remains "firm," she said.

    "The First World, to which we had been repeatedly told we must reach, is crumbling like a bubble", Kirchner added. "In the midst of the swelling sea" Argentina remains strong. "It's time many of those institutions instead of telling us what to do, should look around and do something for themselves".

    Meantime Brazil's stocks rallied on Thursday on optimism about a potential US plan to solve the financial crisis, while the Real tumbled but pared losses after the central bank said it would help ease a liquidity drought.

    Sao Paulo's main stock index, the Bovespa, jumped 5.48% with Wall Street to a close at 48,422.75 points – its biggest daily gain since April. Even so, the stock market is still down more than 24% this year.

    Brazil's currency, the real, dropped as much as 5%, its biggest daily drop in more than a year, as investors sought liquidity in a dried-up market. But losses eased after the central bank said it would offer dollar repurchase agreements to supply liquidity to the market and closed down 2.89% at 1.921 reais per dollar.

    News that U.S. Treasury Secretary Henry Paulson has been shopping around a proposal to Congress that would create an entity to deal with bad debt boosted Wall Street, and Brazilian stocks with it.

    The biggest weighted gainer was government managed oil corporation Petrobras which benefited from higher oil prices. It rose 8.05% to 32.20 reais while mining giant Vale gained 7.45% to 34.60 reais.

    Banks also rallied, with Itaú, Banco Bradesco and Unibanco up between 6.6% and 8.6%.

    However Brazil's Central Bank said robust economic activity continues to pose a significant risk to its goal of achieving benign inflation despite signs of a global slowdown and a decline in commodity prices.

    Mercopress

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    • Show Comments (27)

    • dnbaiacu

      Lula…LOL
      [quote]If he thinks the Brazilian economy will decouple from the U.S. economy, he’s more ignorant than he sounds. [/quote]

      He had to say that to keep the people on the HIGH of Pseudo Prosperity

    • dnbaiacu

      Central Banks Globally Are Taking Over
      [quote]
      you never get out of dept , as the banks want you that way [/quote]

      [quote]News that U.S. Treasury Secretary Henry Paulson has been shopping around a proposal to Congress that would create an entity to deal with bad debt[/quote]

      And yes Lula knows it.
      [quote]”Important banks, very important banks, that spent their lives giving advice about Brazil and what we should or shouldn’t do are now broke,” news agency EFE quoted Lula da Silva as saying in a speech in southern Brazil. [/quote]
      Pure political posturing. Had I been taught in school that Presidents are just cheerleaders,, I would have understood the game years ago. 😀
      The international power brokers are surfacing . They are coming out of hiding and no one sees it for what it is.
      [b]DO CENTRAL BANKS OF OTHER COUNTRIES BESIDES THE U.S PRINT UP WORTHLESS MONEY AND CHARGE INTEREST ON IT?[/b]
      This is what the Fed does. I wonder what the other Central bank players are backing up their currency with. Is this just a U.S phenomenon?
      The financial herd just runs around in circles following Central bank bailouts. We , the peons pay for this with inflation and stagnant wages.
      THIEVES!
      [quote]19À‚ À¢€œStop storing up for yourselves treasures upon the earth, where moth and rust consume, and where thieves break in and steal.[/quote]
      Matthew 6:19
      The best timeless financial advice ever! 😉
      I always liked Suzanne Ormans financial advice.. “With money, do what makes you feel powerful.”
      It’s all in your head anyway.
      [quote]The valuable things of the rich are his strong town, and they are like a protective wall in his IMAGINATIONquote] Proverbs 18:11 😉
      Sounds a little true to me 🙂

    • CH.C.

      Joao “Rouble and now you give a new name Rubble ! Wrong Joao !
      Rouble is in…French
      Ruble is in English

      Rubble…..simply a typing error from me for the double b !

      I did not play with words…this time !

      😀 😉 😀 😉

    • CH.C.

      To the guest”Lula is right. It was speculation by these individuals on how radical Lula would be if he became president which drove the real down to R$3.92.”
      Dead wrong ! Simply a coincidence !
      The Brl started to decouple from its peg in 1998… 4 years before Lula was elected. from 1 to 1 – to 3.92 to 1
      And Argentina your brother, just went bankrupt once more !
      And ALL emerging AND developed nations were in a recession.
      And America was in a recession
      And Greenspan put the Fed rate at the lowest in….. 50 years…at 1 % !!!!!

      This created the WORLD BEST ECONOMIC BOOM OF OVER 50 YEARS !

      Nothing to do with Lula or not Lula !
      Reality being that with Lula policies, Brazil had one of the LEAST economic boom of all EMERGING NATIONS….over the last 5 years….including with his MODIFIED maths to show higher GDP growth than previously reported !!!!!

      Conclusion : had you put a monkey as Brazil President, no doubt Brazil would have done…..at least the average economic growth rate of the BRIC & MERCOSUR nations !!!!

      Sorry Buddy…but Brazil has the second or third WORST economic growth rate of ALL South America & Caribeans nations !!!!!

      And the only reason the Brl slightly more than doubled…FROM ITS LOW….is simply because Brazil OFFFERED the WORLD HIGHEST
      INTERESTS RATE…AFTER INFLATION…FOR MANY YEARS !!!!!
      Today Brazil offers the SECOND highest rate after inflation, Turkey being first.

      Dont cry Buddy…that Brazilian society are taken for a ride and has to pay 33 % on cars purchases, 55 % on consumers goods and 163 % on overdrafts….while ahaving an inflation of 4-7 % range !
      You pay so much because the majority of Brazilians APPLAUDE Robin the Crook policies, just like you do !!!!!!

      Stupid question : WHO DO YOU THINK ROBIN THE CROOK HAS CROOKED….THE MOST ????????
      The minorty few who dont need to borrow but can invest risk free at 14 % OR the majority who borrow at the stated rate above `???????

      😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😉

    • CH.C.

      maybe Lula got his degree in a detergent pack..(an oldie but a goodie)
      Certainly no one can prove me wrong !
      Yessss….what was the University he went to ?
      Therefore it is not….MAY BE !

      😉 😀

    • CH.C.

      Jay Glenn
      You are 90 % right !
      They played OPM…Other People Money !

      But somewhat wrong on Lula and his 40’000 thieves. Keep in mind that the USA has nearly a 10 to 1 GDP ratio against Brazil !
      Therefore please put things in perspective ! On top of that whatever the U.S. thieves did and earned, it is still DECLARED on their tax income reports.
      What about Lula and his 40’000 thieves…in your view ?
      😀 😉 😀 😉

    • JAY GLENN

      THE WALL STREET BANKS ARE HARD OFF? THEN KNEW WHAT THEY WERE DOING, MAKING MONEY FOR THEM SELFS.
      NO the people who invested in them are hard off.
      THE WALL STREET ADVISORS ARE RICH.
      MONEY WAS MADE ALOT OF MONEY.
      WE HAVE PEOPLE ON WALLSTREET THAT MADE MORE MONEY THAN
      LULA AND HIS FORTY THOUSAND THEIFES TOOK FROM THE POUR OF BRAZIL.
      LASTLY LOOK AT THE BRAZILAN STOCK MARKET, LIKE ALWAYS IT JUST A LITTLE BEHIND>

    • João da Silva

      [quote]But, But, But, maybe Lula got his degree in a detergent pack..(an oldie but a goodie)[/quote]

      Where have you been all this time, you traitor ?You should be shot for treason.

      It is not “But,But,But”, [i]but[/i] “BUT…BUT..BUT”. Learn to speak prim and proper English, lest we bring our formidable Lord Augustus into picture. 😀

      Regardless, great to know that you are alive and well. Take care.

    • …..

      But, But, But, maybe Lula got his degree in a detergent pack..(an oldie but a goodie) 😉

    • João da Silva

      Ch.c
      [quote]Even the Rubble that once was traded at 5 US$ for 1 Rubble, now is 24 rubbles for 1 US$. [/quote]

      I noticed a long time ago that you play with words (deliberately of course). As far as I remember the Russian currency is [i]Rouble[/i] and now you give a new name [i]Rubble[/i]

      I fully endorse your view that Rouble=Rubble.

      [quote]This said Joao, your answer is funny. You seem to confirm that Lula went to SP University, but not Cristina !!!!
      Are you so sure for Lula ? [/quote]

      I am not saying that he got a degree from SP university,BUT ..BUT ..he might have gone there to take shelter from the tropical rains. 😉

    • CH.C.

      to dnbaiacu “DO CENTRAL BANKS OF OTHER COUNTRIES BESIDES THE U.S PRINT UP WORTHLESS MONEY AND CHARGE INTEREST ON IT?
      Or course.
      Just look at Brazil, your cherished country.
      Brazil has taken off 4 times 3 zeroes….off its currency !
      So far, not the USA….to my knowledge !
      to my knowledge, one would need several trillions of your 1930 currency to make US$ 1.- ….TODAY !!!!
      No memory….is not knowledge contrary to your wrong assumptions.
      Better yet, over the decades…..ALL emergings nations currencies have lost nearly all their value against the US$ currency…you criticize.
      Even the Rubble that once was traded at 5 US$ for 1 Rubble, now is 24 rubbles for 1 US$.

      For your misssing memory : Brazil has the world worst inflation over the decades.
      Meaning that even your “strong” currency lost value against OTHERS emerging nations currencies, including against the Rubble, Indian currency, Indonesian currency, Philipines currency and believe it or not even against the Argentina currency !

      Thus to whom can Brazil give a lesson ? Barely to…ZIMBABWE !!!

      😀 😉 😀 😉 😀 😉 😀 😉

      And to Joao ” Cris went to some university in Patagonia “
      Judging about her lips, she went to Philo.
      She knows how to use her lips, tongue and mouth…by now !

      This said Joao, your answer is funny. You seem to confirm that Lula went to SP University, but not Cristina !!!!
      Are you so sure for Lula ?
      😀 😉 😀 😉 😀 😉

      To Archie Haase “Lula should shut up until he himself separates himself and his friends from those same Wall Street types. This is where Brazilian money comes from like it or not.”
      You are dead right, and this ios what I wrote too.
      It is due to the people Lula criticizes that Brazil is still alive.
      Every single of past Brazil problems have been resolved by the USA.
      Robin the Crook has even a “memory hole” that in the early 1980s the U.S. Government GUARANTEED part of some Brazilian GOVERNMENT debts !
      These Brazilian bonds were called “BRADY BONDS” !
      Brady….because it was the name of the guy who had the idea !

      It is just amazing how South America overall are criticizing the ones who saved them MORE THAN ONCE !!!!
      Typically the South American inferiority complexion !!!!

      In South America…..no memory….is always on purpose !!!!

    • Archie Haase

      To those that promote free migration based on human rights I say when is there going to be accountability to those few families and institutions in Latin America that control the economic systems that drive their own people out and a hopeful better life in the United States? We, even have former Mexican president Fox the buffoon he acts like some times talk about open borders in the US. What a bunch of !@#$.

      As a Roman Catholic I also ask why the church stands by and let the injustices go on and on, promoted by local ruling families, global corporations, Europeans, and North Americans. Even the Pope came to Brazil to criticize liberation theology yet not offer any criticism of those in Brazil responsible for the poor. In Bolivia now we have a government that is under threat by ruling families and the CIA because solutions are being researched for pain relief of Boliviaˢ۪s poor.

      Please spare me criticisms of US and I am sure the new President Obama when nothing is done in the country of origins to ease the pain of the poor.

      In light of the human migration to North America mainly the United States I have to respond since I have a background in À¢€œrefugee studiesÀ¢€Â and live in South America.
      Lula should shut up until he himself separates himself and his friends from those same Wall Street types. This is where Brazilian money comes from like it or not. This man is a phony just like Bush only Lula comes from a poor background compared to silver spoon fed GW. Until he — Lula stops benefitting from friends in stealth like Dante. Lula has nothing to add to the financial situation that helps the 100 plus million poor people in Brazil.

    • João da Silva

      dnbaiacu
      [quote]Pseudo Prosperity [/quote]

      Another keyword and thanks. An illusion, if I might say ? (I am getting too much afflicted to Lord AugustusÀ‚´s QueenÀ‚´s English). 😀

    • João da Silva

      Ch.c
      [quote]I bet Cristina went to the same SP University than Lula !!!!
      [/quote]

      You lost your bet. Cris went to some university in Patagonia 😉

    • João da Silva

      [quote]70% of Brazil’s exports are sold to the ‘idiots” north of the Rio Grande. Its not nice to insult your customers to their face, they might take offense and go buy somewhere else.[/quote]

      You never ever offend your customers. Bad for business. Besides, the “idiots north of the Rio Grande” might look towards their Northern brethren in the “Arctic Hell” for resources and might make a deal with RIC countries, leaving B sucking their thumbs.Then you have the whole “Dark Continent” to make a deal too.

      I think that the shit has hit the fan and not many people realize it!

    • CH.C.

      Forrest “iN 2003 WAS NOT Argentina’s MONEY WORHT LESS THAN TOLITE PAPER ”
      Not worth much more since then.
      At the low of the Argentina currency, the US$ WAS WORTH 4.- to 1 Argentina Peso
      During the last few years it is in the range of 3.00 – 3,20 . to 1

      Not much appreciation of the Argentina Peso but the country ready for another bankruptcy within the next several years.

      And to some extent, the same for Brazil :
      The low point was 3,80 to 1
      high point a few months ago 1,54
      Today 1,84

      Both coming from 1 to 1 in the early/mid 1990s.

      And Brazil is quite sure they have a strong currency.
      They are telling the world that
      A Stock that went down from 100.- to 0,000001 cent over the decades, and then DOUBLING …..is a strong, good quality and good performance stock !

      But that is exactly what the Brazilian currency did and where it stands TODAY !!!!!!!!

      NO DIFFERENCE !

    • CH.C.

      oops typing error
      Thus far the U.S. Government can borrow at a rate of near ZERO for 3 months and below 4 % for 20 YEARS long term bonds.

    • CH.C.

      And as to the Bimbo Fernandez !!!!!
      Thus far the U.S. Government can borrow at a rate of near ZERO for 3 months and below 4 % for 20 long term bonds.

      When the Bimbo has no choice but to borrow U.S. dollars at 12 % or so for long term bonds (borrowings).

      Better yet the CDS (Credit Default Swap) insurance for Argentina is at over 10 %.

      Therefore saying Argentina is doing fine is definitely…LAUGHABLE !!!!
      So much that Argentina is not better ranked than Pakistan.
      and for more laughs…..Argentina is in the list of countries that may very well default in the next several years.

      Finally for even more laughs……Argentina has forgotten that their government went BANKRUPT MORE THAN ONCE !!!!!!

      I bet Cristina went to the same SP University than Lula !!!!

      😀 😉

    • CH.C.

      Somewhat true but also funny !!!!!
      “Important banks, very important banks, that spent their lives giving advice about Brazil and what we should or shouldn’t do are now broke,”

      Except that….it is through these same banks…….Brazil was able to BORROW money (Government & Corporations)…..for decades !
      Also through these same banks…..BRAZIL enterprises raised money at inflated prices. 90 % of all the companies that went public in 2007 are now WELL WELL BELOW ….THE ISSUING PRICE. Such as Agrenco….DOWN 90 % !!!!!!

      As to the Brazilian Government, 100 % of your foreign currencies borrowings have been made through these banks.

      Lula is really…..AN IDIOT !
      Normal ! He too went to a SP University.

      Joao : dead right. Many emerging nations with MORE foreign currencies than Brazil, have already spent 10-20 % of these reserves to support their own local currencies.

      Ohhhh and Lula has a short memory of the number of banks taken by the government due to financial problems in the mid
      1990s in….BRAZIL !!!!!!!!
      Better yet, in those days it was not only banks that were BANKRUPT, but also your STATES. Yess…..the FEDERAL GOVERNMENT HAD TO TAKE AND GUARANTEE ALL THE STATES DEBTS.
      Including your wealthiest state : SAO PAULO !!!!!

      Hmmmm…Hmmmmmm Lula has a big hole……in his memory ! His feijado….dried up and is now infected by……the asian rust !

      😀 😉 😀 😉 😀

    • AES

      70% of Brazil’s exports are sold to the ‘idiots” north of the Rio Grande. Its not nice to insult your customers to their face, they might take offense and go buy somewhere else. Not to mention that any economic termoil affecting the U.S. consumers ability to buy will effect Brazil. Bovespa’s meteoretic rise to day was a good day to sell, so I did. Let us see who else sells off Bovespa on Monday, Petrobras is still in the portfolio along with Brazilian realestate and government bonds. Just waiting for the dust to settle.

    • João da Silva

      VinnyCarioca
      [quote]They should be very worried Joao. If you look at the charts of the Dow 30 and the Bovespa, you will see that they are very similar in so far as the recent bear market. Before our Treasury Secretary bailed out his former colleagues on Wall St., the Bovespa was on the edge of crashing (30% decline). The Shanghai Composite was down 70%.
      The decoupling theory has been proven to be a myth and when we all, in my opinion, go through deflation commodities will also suffer.[/quote]

      Vinny, your statements make lots of sense to most of the bloggers. The voters should be worried, but they are not, because the electoral “base” consists of uneducated mass that is mesmerized by populism spewing out of the “rulers”. Now the Brazilian Central bank is selling $500 Millions from its currency reserve to keep the exchange rate low. I don’t think that is going to work.

      The day before yesterday, there was an interview given by the ex-President of BNDES and he clearly expressed that Brazil is going to be affected too and the reserve of $207 Billions will evaporate into thin air, if we are not careful. These are the dangerous times and not time for the middle class to go into speculation nor go on a buying spree on credit.

    • VinnyCarioca

      Joao
      Do you think that a large majority of his voters are investors in BOVESPA or worried about the international financial system collapsing?

      They should be very worried Joao. If you look at the charts of the Dow 30 and the Bovespa, you will see that they are very similar in so far as the recent bear market. Before our Treasury Secretary bailed out his former colleagues on Wall St., the Bovespa was on the edge of crashing (30% decline). The Shanghai Composite was down 70%.
      The decoupling theory has been proven to be a myth and when we all, in my opinion, go through deflation commodities will also suffer.

    • João da Silva

      Why does Lula say ridiculous things on a serial basis?
      No Vinny, his statements are not ridiculous. He is one of the greatest salesmen Brazil has had in recent times.I read your comment in the other thread about Ron Reagan who said “We are the government and here to help you”. Lula is a very astute politician. I don’t know if you guys remember him giving a speech last year saying that in his young days, he was a leftist,but when ones grows older, he tends to become a rightist. He says what his electoral base wants him to say. Do you think that a large majority of his voters are investors in BOVESPA or worried about the international financial system collapsing? He has his [i]voters[/i] and [i]supporters[/i] the latter of which are the ones controlling him with their financial clout. That is the reason I take Dnbaiacu who tells everyone to “follow the money”, seriously.

      Your comment (in other thread) about Ron Reagan also reminds me of the famous phrase “Teflon President”. Well Brazil has one now. 😉

    • VinnyCarioca

      Why does Lula say ridiculous things on a serial basis?
      If he thinks the Brazilian economy will decouple from Wall Street, he’s more ignorant than he sounds.
      I’m still befuddled by his “Brazil was chosen by God to host the Olympics” insane remark.
      He doesn’t abuse alcohol, does he?

    • The Guest

      Forrest
      “…before lula was electid the real was 392 to the US dollar?”

      Lula is right. It was speculation by these individuals on how radical Lula would be if he became president which drove the real down to R$3.92. The real only began to regain its value after Lula proved them wrong with his economic policies.
      On another note, I personally believe the real should be trading between R$2 – R$2.50. I believe this level is good for increasing exports and reducing but not eliminating imports.

    • VinnyCarioca

      Why does Lula say ridiculous things on a serial basis?
      If he thinks the Brazilian economy will decouple from the U.S. economy, he’s more ignorant than he sounds.

    • forrest allen brown

      LIKE LULA KNOWS WHAT IS GOING ON
      iN 2003 WAS NOT Argentina’s MONEY WORHT LESS THAN TOLITE PAPER
      and before lula was electid the real was 392 to the US dollar??

      easy for them to poke fun when they dont do stocks just rob from the public
      monies they were trusted with .to make there millions to take and hide elese where.

      it all goes to show the casino style stock traders and the get rich quick ALL FAIL
      sonner than later .
      if you dont have money in your pocket dont spend it with plactic.
      you never get out of dept , as the banks want you that way

      look at the personal dept in brazil to the banks with there 33/1/3 % would take for ever to pay stuff off .

      or by the time you pay it off you no longer have it as it has rotted away .

      what i want to see is thies people throwing the congress and senet out a 20 storie window and then jumping out
      after them .

      glad i have no money tied up in that bag of worms called the gobal economy
      in vest in land that grows food <

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