Identifier
Created
Classification
Origin
08SAOPAULO474
2008-09-08 10:46:00
UNCLASSIFIED
Consulate Sao Paulo
Cable title:
GLOBAL ECONOMY - MORTGAGE CRISIS
how-toVZCZCXYZ0002 OO RUEHWEB DE RUEHSO #0474 2521046 ZNR UUUUU ZZH O 081046Z SEP 08 FM AMCONSUL SAO PAULO TO RUEHC/SECSTATE WASHDC IMMEDIATE 8504 INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE RUEHBR/AMEMBASSY BRASILIA PRIORITY 9640 RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8837 RUCPDOC/USDOC WASHDC 3163
UNCLAS SAO PAULO 000474
SIPDIS
STATE INR/R/MR; IIP/R/MR; WHA/PD
DEPT PASS USTR
USDOC 4322/MAC/OLAC/JAFEE
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: GLOBAL ECONOMY - MORTGAGE CRISIS
Market of Lies and Kidnappings
Commentary from liberal Folha de S. Paulo (09/08) says: "The U.S.
government nationalized almost half of the mortgage market. Wasn't
it nationalization?. . . If it were in Venezuela then it would be
considered nationalization, right? The "anti-statist" Bush
administration ends with the largest intervention in the U.S.
economy since the Great Depression of the 1930's. But the profits
were kept by those who created the financial crisis; the government
tries to avoid more bankruptcy ...but the "rational" and efficient"
oligarchic financial markets (too big to go bankrupt) have the
monopoly of a weak technical excuse (to get bailed out). Does a
privileged system deserve help when threatening the rest of the
economy but not have to pay for it during good times. The other
name of this excuse, "systemic risk", is kidnapping: if you don't
pay the ransom, I'll kill everybody... But many people think that
the crisis will not stop while the indebted house buyers do not
receive direct help... But most important of all is: the U.S.
government says and repeats that it will not let the ball touch the
ground."
White