Identifier
Created
Classification
Origin
08SAOPAULO636
2008-12-01 11:58:00
UNCLASSIFIED
Consulate Sao Paulo
Cable title:
Global Economy: Financial market crisis - Sao Paulo Media
how-toVZCZCXYZ0000 OO RUEHWEB DE RUEHSO #0636 3361158 ZNR UUUUU ZZH O 011158Z DEC 08 FM AMCONSUL SAO PAULO TO RUEHC/SECSTATE WASHDC IMMEDIATE 8746 INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE RUEHBR/AMEMBASSY BRASILIA PRIORITY 9900 RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8930 RUCPDOC/USDOC WASHDC 3214
UNCLAS SAO PAULO 000636
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 XM XR BR
SUBJECT: Global Economy: Financial market crisis - Sao Paulo Media
Reaction
Title - The crisis and its long-term corollaries
Article in business-oriented Valor Economico (12-01) states: "From a
short-term perspective, the crisis has been solved. The corrective
measures are being adopted.... What one can affirm, without and
great risk, is that capitalism will never be the same. Among the
probable changes we will see is strict regulation of the financial
sector....controlling the abuse of executives who made fortunes
through high salaries and participation in the profits.... Rules
should be created to avoid that and with justifiable measures
intended to correct the economic crisis that resulted in gains for
the owners and controllers of poorly-managed financial
institutions.... What happens to underdeveloped countries in Latin
America? .... They should go beyond the simple institutional reforms
proposed by the recently-launched Extended Washington Consensus,
with the state taking the lead of long-term economic strategies
aimed at eliminating economic backwardness as fast as possible."
White