S&P downgrades Brazil's credit rating; delay of pension system reform takes the blame

Friday, January 12th 2018 - 10:58 UTC

Full article 12 comments

Ratings agency Standard & Poor’s cut Brazil’s credit rating further below investment grade on Thursday as doubts grew about a presidential election in October and a push to trim its costly pension system, seen as vital to closing a huge fiscal deficit. S&P lowered its long-term rating for Brazil sovereign debt to BB- from BB previously, with a stable outlook, citing less timely and effective policymaking. S&P also cited a risk of greater policy uncertainty after this year’s elections. Read full article

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Jack Bauer
The reduction in the investment grade, or credit rating, is going to be the least of Brazil's problems if the pension reform is not approved, and soon. All these factors are interlaced, so one problem causes another...
Jan 12th, 2018 - 07:29 pm - Link - Report abuse 0
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:o))
@JB:

REF: “one problem causes another”:

The synonym for “snowballing of the problems” is:

CORRUPTION: REF:
https://i0.wp.com/www.humorpolitico.com.br/wp-content/uploads/2018/01/Temer-no-SBT.jpg?zoom=0.8999999761581421&resize=480%2C360&ssl=1
Jan 12th, 2018 - 07:57 pm - Link - Report abuse 0
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Jack Bauer
@:o))
The problem with Congress not wanting to vote the pension reform, has two sides to it : One, they think that by voting something which the minority (union leaders and civil servants) has convinced the stupid majority, is bad, will be prejudicial to their chances of being re-elected....but this ignores the inevitable consequences of letting things go on as they are ;
Two, they might be agraid that IF it's voted soon, and manages to halt the huge deficits year after year, and growing, they will have to give the credit to Temer....just like the PT when they voted against the Plano Real in 1994....besides being too stupid to realize the ingenuity behind the plan, they would naturally be against anything that was not created by themselves, or could give credit to someone else....seems that everything the PT is against ends up by working well......
Jan 14th, 2018 - 06:54 pm - Link - Report abuse 0
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:o))
@JB

Well analyzed! Thanx!

The situation is: “Damned if you do, damned if you don't”

The Financial Mess is basically due to:
- NO Spending limits nor regulation/control - Unconditional & Unchecked Spending. Hence, spending irresponsibly more than the income
- NO saving for a rainy day
- NO auditing [internal/external]
- NOBODY is responsible [no authorization from a responsible authority]
Besides; REF:
https://i2.wp.com/www.humorpolitico.com.br/wp-content/uploads/2018/01/genildo-13.jpg?resize=481%2C420&ssl=1
ISN'T IT SO?
Jan 15th, 2018 - 10:24 am - Link - Report abuse 0
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Jack Bauer
@:o))
Interesting video by Felipe Moura Brasil..
https://www.facebook.com/prageru/videos/1663491490360367/
Jan 15th, 2018 - 04:42 pm - Link - Report abuse 0
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:o))
Thanx!, JB!

Basically, the Brazilian Culture needs to change 180º - to the TOTAL Unacceptance of Corruption. REF:
https://www.blogdonassif.com.br/public/img/media/mentira-01-promessa1482440170.jpg || And as Felipe Moura says; it would take a few generations!
Jan 15th, 2018 - 05:20 pm - Link - Report abuse 0
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YourWorseNightmare
@JB. You are obviously a very superior person. And, I'm sure, that your friends are all very superior people as well. So, don't you think its funny that, despite your obvious superiority, you and your friends are unable to compete with those who are your inferiors for the support of the “stupid majority”? I know I do!
Jan 18th, 2018 - 03:46 am - Link - Report abuse 0
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Jack Bauer
@YWN
You are the moron who is attributing to me the quality of superior...is it because you feel you are inferior ?
But please explain where, in the above posts, I have said something incorrect, illogical, or tried to insinuate what 'you' define as 'superiority'....am waiting for an explanation, you 'obvious' 'petista'.
Jan 18th, 2018 - 06:51 pm - Link - Report abuse 0
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:o))
@JB

To @YWN: Unmistakenly;
http://4.bp.blogspot.com/_qdH6UcWxxc8/TKHt94tdlhI/AAAAAAAAAs4/2EZtUt4OFSU/s1600/PALH%C3%87O-2.JPG
Jan 19th, 2018 - 09:51 am - Link - Report abuse 0
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Jack Bauer
@:o))
yeah, you could say so, there's one born every minute in this country...
Jan 19th, 2018 - 01:55 pm - Link - Report abuse 0
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:o))
@ JB

Long [???] live Brazil!
Jan 20th, 2018 - 09:46 am - Link - Report abuse 0
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Jack Bauer
@:o))
o que me espanta é o babaca “YWN”..fala bosta e depois foge do debate...deve ser 'petista'.
Jan 20th, 2018 - 05:30 pm - Link - Report abuse 0
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