Thursday, September 18, 2008

Melting Markets can restore the faith of the Investors?

To Overcome old habbits would be guarantee of better solution to chill the markets?

Surprisingly, most part of the defensors of liberalism are not coming out in public to defend the state to not interveine on the market.what it begun with a result of easy money drooling out of banks and landing in the hands of the consumers in US. Possibly they wouldn't ever imagine that the headquarters of liberalism could pass through a situation once more, where its own values are now put into the test

The buzz are not hard news at all. Actually, the signs of that were pretty much clear. when you got a current deficit that are not reduced, tax cuts implement by the actual government, competition with products from all over the world, inflation and huge investments on war supplies, together they combined int a disaster for the real economy, not only for the US but for all over the world.

And What us, poor Brazilians located on the middle of the edge of south america, should I be worried with this?! In a short time period? No, even so because for the very first time in a while, we are not really influenced by their decisions, The central Bank of Brazil has done its dutty pretty well. from moratory to be creditor in less than 5 years. That's really something if you compare our reality to other countries, like Argentina

In a Long term period, I wouldn't say so. Just like the US, Brazil has implanted a measure to easily access the real state to most part of brazilians. It's easy to see right now most part of people with a very low budget to buy its own house. The thing is, capitalism is cyclical and it wouldn't take too much time to a real crisis install in Brazilian soil and really put its fundaments on the line.

Structural reforms such as previdency and too many others are now stucked at the congress and the public spends are still rising up. It's not a healthy reality if you realy want to prevent crisis to arrive down here. When a government spends too much what it collects could be damaging and our neighbour below are now paying a very high price.

Easy credit is investment, it is helpfull and change the whole scenario of the country. As most part of you people could see, it seems like Brazil is rebuilding itself with constructions everywhere around. When easy credit is given with long terms to pay. It shows not only that the bank is completely confident on its buyer. but confident on the mood of the economy as well. If something else goes really bad, everything colapses.

When you see constructions for housing costing a too much higher prices, get smart because the especulation was the cause of 1929 crisis. So far, Brazils price of real state are below of the international market. The point is - If this price are high enough for our reality.

Too hard to gamble the fate of our country, that's why the elections could help us out to make a good decision.

Rafael Gomes