Identifier
Created
Classification
Origin
09SAOPAULO136
2009-03-11 13:58:00
UNCLASSIFIED
Consulate Sao Paulo
Cable title:
MEDIA REACTION - GLOBAL ECONOMY: FINANCIAL MARKET CRISIS;
how-toVZCZCXYZ0022 OO RUEHWEB DE RUEHSO #0136 0701358 ZNR UUUUU ZZH O 111358Z MAR 09 FM AMCONSUL SAO PAULO TO RUEHC/SECSTATE WASHDC IMMEDIATE 9006 INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE RUEHBR/AMEMBASSY BRASILIA PRIORITY 0160 RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9057
UNCLAS SAO PAULO 000136
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 XM XR XF BR
SUBJECT: MEDIA REACTION - GLOBAL ECONOMY: FINANCIAL MARKET CRISIS;
SAO PAULO
A Quick Drop
Editorial in liberal A Folha de S. Paulo (3-11) says: "....On the
back of the global bonanza [seen between 2004 and 2008] the
Brazilian economy more than doubled its expansive pace in comparison
to the one seen in the two previous decades. With expressive trade
surpluses and a massive capital inflow, Brazil was able
to.....increase its protection against international crises.
Unfortunately, this line of prudence did not include government
expenses.....If the public power had controlled its natural
inclination to spend it then it would now have a less limited
arsenal to fight the injurious effects of the global debacle."
The Economy's Tumble
Editorial in center-right O Estado de S. Paulo (3-11) states: "The
Brazilian economy suffered a tumble at the end of 2008, the largest
in the last 12 years, and the shock is not gone yet.....This will be
a bad year for the entire world. Brazil will not be immune to
difficulties, but, despite that, may have a better performance, if
the government is able to take an anti-cyclical action. So far, it
[GOB] is listening to lobbies that have the best competences to
obtain facilities and, in addition to this, planning actions that
have an electoral effect, such as building homes for a symbolic
price and with fiscal consequences yet to be estimated. This is a
way of burning money, not a way to stimulate the economy."
WHITE
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 XM XR XF BR
SUBJECT: MEDIA REACTION - GLOBAL ECONOMY: FINANCIAL MARKET CRISIS;
SAO PAULO
A Quick Drop
Editorial in liberal A Folha de S. Paulo (3-11) says: "....On the
back of the global bonanza [seen between 2004 and 2008] the
Brazilian economy more than doubled its expansive pace in comparison
to the one seen in the two previous decades. With expressive trade
surpluses and a massive capital inflow, Brazil was able
to.....increase its protection against international crises.
Unfortunately, this line of prudence did not include government
expenses.....If the public power had controlled its natural
inclination to spend it then it would now have a less limited
arsenal to fight the injurious effects of the global debacle."
The Economy's Tumble
Editorial in center-right O Estado de S. Paulo (3-11) states: "The
Brazilian economy suffered a tumble at the end of 2008, the largest
in the last 12 years, and the shock is not gone yet.....This will be
a bad year for the entire world. Brazil will not be immune to
difficulties, but, despite that, may have a better performance, if
the government is able to take an anti-cyclical action. So far, it
[GOB] is listening to lobbies that have the best competences to
obtain facilities and, in addition to this, planning actions that
have an electoral effect, such as building homes for a symbolic
price and with fiscal consequences yet to be estimated. This is a
way of burning money, not a way to stimulate the economy."
WHITE