Media Reaction Sao Paulo February 05 2009

UNCLAS SAO PAULO 000078 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 Sao Paulo February 05 2009 Media Reaction - Global Economy: Financial market crisis; Sao Paulo February 5, 2009 Title- Fantasy Island Op-Ed in liberal Folha de S.Paulo (2-5) by Kenneth Maxwell says: "....There was an old TV show called 'Fantasy Island'. Americans who are spending their vacations on Caribbean beaches have left the dramatic situation of their country behind, for a while. But when they go back to Chicago, New York and Boston they are going to confront a cold reality." Title- Banking Crisis Op-Ed in business oriented Valor Economico (2-5) by Marambai's CEO, Luiz Cezar Fernandes, states: "In this transition in the U.S. from the Bush administration to President Barack Obama, it seems that a significant break with the past has not happened yet. For now, the thing that is going badly, the direction of the formation of committees and work groups - and we know very well that generally we do not get good things out of these committees because everyone tries to protect themselves and there is no boldness....important banks cannot collapse. The world would not bear it.....A concrete proposal would be to replace toxic assets from U.S. banks for long term Treasury bonds with a zero coupon." Title- Crisis questions options for development in Latin American Op-Ed in business oriented Valor Economico (2-5) by economist Carlos Eduardo Carvalho says: "The sharp deterioration in the external context in 2008 strongly questions the different alternatives shaped in Latin American countries in recent decades, in addition to presenting considerable challenges to the political-economic policies adopted in recent years. For now, the reaction of affected countries trying to face immediate problems, without breaking with general orientations that have been followed....If the crisis aggravates or gives its place to a scenario of prolonged retraction of the global economy, it is possible that economic policy reactions become stronger and more differentiated, in the same way that the years of bonanza gave room to distinct options of economic policy, even in countries usually grouped under ideological clichs." WHITE