Now blogging at diego's weblog. See you over there!

brazil in trouble

Related to my previous entry on the crisis in latin america... yesterday the dollar shot up in Brazil along with the premium the country pays (above the US costs) for loans. The premium went up to almost 25% annually. Such a premium is patently ridiculous, and it only creates a cash problem for Brazil that then forces it to default and then... the premium actually makes sense. Quite similar to what happened to Argentina a year ago. The question is whether this time the US (through the IMF and the World Bank) is planning to do anything to stop it.

Categories: personal
Posted by diego on July 30 2002 at 9:21 AM

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