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Getting the worst of it today (again) is Brazil, the Bovespa -3.1% amidst growing signs of...

Getting the worst of it today (again) is Brazil, the Bovespa -3.1% amidst growing signs of something beyond a healthy slowdown in major customer China. In America, we don't fight the Fed. Brazil? The central bank is expected to cut another 50 basis points to 8% tomorrow, continuing aggressive easing that has brought the benchmark rate down from 12.5% a year ago. EWZ -30% Y/Y.
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  • Market analyst 1
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    Brazil surfed China's commodity wave and managed to repair its
    foreign debt problem.
    Nothing else has been done. Major issues from archaic labor laws to the chaotic tax system, from corruption to increasing government
    intervention in the economy, from arbitrary and surrealist decisions from tax authorities to one of the most unfriendly business environments to public pension fund deficits it's natural that the Brazilian economy is collapsing.
    The People's Socialist Republic of Brazil is following its neighbors Venezuela, Bolivia, Argentina and Ecuador down the path of the bankrupted Welfare State governed by corrupt populist cadres.
    The Brazilian party is over. We will see a lot more bad news coming out of Brazil. To invest in Brazil is like investing in Venezuela or Argentina, the concern is not return on capital but return of capital.
    10 Jul 2012, 04:27 PM Reply Like
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