Now it is Brazil that is helping out the IMF and the "developed countries" and "over-indebted countries".
Where is it safer to invest nowadays?
Obama was not the first to call Lula, That's the Man.
In 2005 Jeffrey Immelt, CEO of GE, had a meeting with President Lula, who gave Immelt an overview on Brazil's competitive advantages, opportunities, problems and bottlenecks, charts and all.
Impressed, Immelt asked Lula how GE could help Brazil solve all those problems?
"That's your problem. What I want to know is how my government can help GE help Brazil."
Immelt was overheard leaving the presidential room saying, "That's the Man, That's the Man".
Why on earth do journalists report interest rate cuts as percentage POINTS, and all the rest in percentages? This is terribly misleading.
Interest rates have been cut in Brazil by another 20%, and interest is the price of money. If cars prices were slashed how do you expect it to be reported?
That is one reason why monetary policies take so long to come into effect. Bad reporting.
Brazil's price of money has been cur from 5% to 4% a year, after tax that becomes 2,5% net. This means a hefty reduction in installment payments, the benchmark most poor people use when buying on credit. No one calculates the internal rates of return.
Anyway, that is another 20% on a previous 20% cut in February. Faster than that would have been foolish.
I will let readers predict what will happen to consumption of durable goods, stock market reaction, when this news slowly sinks in.
Brazil has embarked on a virtuous path of fiscal rigor while opening and improving the efficiency of its well-diversified economy, also attracting increasing amounts of FDI. The country is home to a sophisticated and innovative business sector, with its main champions competing successfully and investing in international markets. However, a number of shortcomings continue to affect Brazil’s competitiveness landscape and need to be addressed for the country to fully leverage its large potential. The significant imbalances still present in its macroeconomic environment, widespread inefficiencies in its factor markets and poor educational standards, especially in math and science, are among the most pressing concerns in this regard.
Irene Mia, Director, Senior Economist, Global Competitiveness Network, World Economic Forum, and a co-editor of the report.
During this period of global economic crisis, Brazil is experiencing a time of great opportunities for its competitiveness environment. Ranked 64th out of 134 countries in the Global Competitiveness Index 2008-2009, the country has to make the most of the financial slowdown to facilitate improvements in its regulatory framework and make adequate investments so that the country’s infrastructure can match the needs of the national economy.
Carlos Arruda, Professor of Innovation and Competitiveness, Fundação Dom Cabral, and co-editor of the report.
Brazilian Automobile industry is running after auto part makers, begging for overtime, and apologizing for the abrupt halt in December.
In April , to everybody's surprise, except for those following Betting On Brazil, car sales are up 1%, which may indicate a 12% growth rate for the year.
Having grown 28% this first quarter, the president of Ford Motor in Brazil, Mr. Marcos Oliveira, declares new investments in Brazil. So does GM's Brazilian President.
Car sales are back to pre-crisis level's, in spite of the fact that 30% of Brazilian are still fearful of losing their jobs.
Which implies that only 70% of the former market is actually buying, and that, as soon as confidence comes back (say July latest), their markets will be growing a possible 20% a year, as usual.
Nearly 600.000 people bought houses financed by Brazil's main mortgage supplier, CEF. This obviously is part of an anti-crisis measure taken by the Brazilian government. But more important than that, it shows willingness by the Brazilian population to assume long term debt, not found in any other country nowadays.
No more need to be said. Now its Brazil helping the IMF, not the other way round.
Not only it is up, but February has 10% less working days than January. So growth may be more in the range of 8%, daily adjusted.
Furthermore, everyone knows that Brazil only really revs up after Carnival. So this pre-Carnival surge is really good news for those who are thinking on Betting On Brazil
Jobs are being created in Brazil, nowhere else. What more is to be said?
Fiat Brazil's Cledorvino Belini declares that Fiat will produce 3.000 cars per day, the same rate as before the US crisis. That is the first 100% rebound of an automobile company in the world. Repeat: in the world.
This is partly due to the intelligent economic policies rapidly implemented by Lula, an autoworker himself.
Rather than dolling out billions to US car makers to enable them to pay suppliers of their unsold inventory, as the US policy, Brazilians economists slashed Excise Taxes on Cars, which led to consumers buying the unsold inventory, and replenishing car makers with cash. Simple as that.
There is an enormous difference though between US and Brazil. In Brazil 80% of the Brazilians are buying their first ever car, no recession is going to take that joy from them.
Americans with 2 to 3 cars are more likely to postpone replenishment.
Question: Which country will come out of this mess first? Countries like Brazil, that have consumers too eager to buy their first evers, or America and European countries with consumers heavily in debt?
Repeat it: where would you invest your money in the next couple of years?