IMF praise for Brazil’s financial system but warns of home-grown risks

Thursday, August 2nd 2012 - 07:20 UTC

Full article 5 comments

Thanks to sound policies and built-in cushions, Brazil’s financial system weathered the global crisis that began in 2008 remarkably well, but now policymakers need to monitor for signs of home-grown financial trouble, the IMF said in its later report. Read full article

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GeoffWard2
Credit expansion ...... I have seen at first hand the problems that financially unsophisticated Brasilians - the 'new middle class' (not to be confused with middle class in the Developed World) are getting into as they rack up personal debt. There is little in the way of safety-nets when things go wrong.
Personal debt will be as much as a problem as institutional debt.
Aug 02nd, 2012 - 11:10 am - Link - Report abuse 0
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ChrisR
@1 Agreed.

When the government tries to buck Mr. Market, we just know what is going to happen next.
Aug 02nd, 2012 - 05:53 pm - Link - Report abuse 0
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Fido Dido
the 'new middle class' (not to be confused with middle class in the Developed World)

As if you are that sophisticated..right Geof? You really believe your own high horse crap huh? There you go again old man. Do yourself a favor and stop pretending as if they know it better in the so called developed world. If they we up north were so better, we would not be in this mess (plus supporting outsourcing of jobs to overseas in return for importing of cheap crap plus let's not forget, buy into that bogus free trade nonsense..there is no FREE trade).

Chris retard, what if goverment tries to buck Mr. Market. You don't even know what the hell you're talking about. The market are the people. The so called Market makers are as corrupted as the bogus market makers in Europe and the US, but Brazil still have strong and terrible regulations that would bother the market makers here who continue to brainwash the people that deregulation are the answers..(that continue to rob us)

Funny that i didn't see both of you idiots commenting on the LIE BOR scandal in our area..but oh boy, do you two know how to lecture other people in countries you both don't even understand.
Aug 03rd, 2012 - 05:16 am - Link - Report abuse 0
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GeoffWard2
Fido,
as Humpty Dumpty might have said, “'Middle class' means exactly what I want it to mean, no more, no less”.
It is a political (and social) act to give sufficient social monies to raise the total income in a household to some arbitrarily set criterion set in its own national context - wrt, and different from, 'middle class' criteria elsewhere.

Self-evidently, there is an improvement in household income; it would be unforgivable if there were not, considering the national leap forward based on oil, agric. and other commodities and manufacture. If inflation doesn't eat into it too much, this is real household improvement.
It CAN fuel aspiration and use of credit; but credit, without an understanding of its dangers can cripple families if there is no certainty of sufficient regular income.

Fido, a number of Brasilian families known to me personally have found themselves in this position. We offered guidance and sufficient interest-free loans to pull them out of their situation.

This is not to say that this is not a problem in 'the developed world' also; there would be no 'sub-prime' if this were the case.

And as for Libor, my comments are on the record - but not here in this inappropriate South Atlantic mouthpiece.
However, there will come a time when both Libor (and others benchmarks) will figure as its impact on South American activities become apparent
... and bank laundering of South American drug money ... will be featured.
Then I will, of course, comment as appropriate.
Aug 03rd, 2012 - 10:17 am - Link - Report abuse 0
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ChrisR
@3 Fido Dildo

Well, as we are back to name calling, you obviously do not read my posts OR if you do you do not understand them.

Mr. Market IS the people, you (unfortunately for the rest of us), Geoff, me and everybody else you moron. Governments THINK (unlike you) they can 'manage' the market: they cannot, that is why it will end up biting them.

Understand now, child. Go back and suck your dummy, you dummy. There, do the insults make you feel at home?
Aug 03rd, 2012 - 11:16 am - Link - Report abuse 0
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