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by malandrew
3710 days ago
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I used to be an investment analyst at Itaú in Brazil writing reports and modeling companies in Brazil. I spent time working in the NYC branch through which many American investors invested in Brazil. I can tell you without any reservation that while foreign investors are allergic to political instability, they are far far far more allergic to the PT, Dilma and Lula. Absolutely none of those actors have been good for getting foreign investors interested in Brazil. Brazil's great economic fortune from the 90s through around 2008 were pretty much entirely due to the Plano Real creating a stable economic environment (ending hyperinflation) and allowing growth to take place. Dilma's administration and economic shenanigan's directly and negatively contributed to Standard & Poor's, Fitch's and then Moody's downgrading of the country, such that many foreign investors can't even invest in Brazil any more because it's junk status. Fortunately, most debt is domestic so the threat of default is low, but it's still possible to finances to worsen and threaten that. The only way to get out of this mess and get back on the path where the rating agencies upgrade us begins with her impeachment. No one, and I mean no one, who actually knows these foreign investors and wants them to invest in Brazil is in favor of Dilma sticking around. |
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