Still DSK
May 20, 2011 18:07:50 | 4 comments

Allow me to copy a comment of a reader in reply to an article of Claudio Loser about the episode: "Strauss-Kahn has been the only president of the IMF to defend a fairer globalization for developing countries, to the point of declaring dead the "Washington consensus” that created the neoliberal policies and opened the door to an unfettered global financial system that Strauss-Kahn was opposed. Strauss therefore dared to predict the "end of American economic hegemony.” However, on 14 May, while in the U.S.  he was accused of attacking an employee, in a version full of aggression, where he appears as a sex maniac that attempts to rape the woman and force her to oral sex. The employee had entered his room when he was showering, getting ready to go to lunch with his daughter before heading to the airport where he was arrested. The trial judge sent him to prison, without parole, arguing that they were gathering evidence of the attack, meanwhile, without losing a moment, Sarkozy nominated as chairman of the IMF to his minister of finance. Thus Sarkozy takes possession of the IMF, which...

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DSK: from Washington to Ryker's.
May 18, 2011 10:01:52 | 0 comments

What could possibly have passed on that Hotel room? It is hard to imagine a former Minister of Finance, a potential runner for the France Presidency, a Director of one of the most powerful Institutions in the world, running after a young lady inside a US$ 3,000.00 per night suite. Beyond wondering about his personal motivations, if the allegations are true, which we don’t know yet, the prison of Dominique Strauss-Kahn, or DSK , could be an SVU episode of Law and Order. Unfortunately, the real episode has serious consequences for the financial world, for Greece and the Euro. DSK , in his capacity as a leader in the IMF, played an essential role in the euro crisis, initiated with Greece last year. He was able to convince other leaders and Institutions to fund the bailout. He is a defender of the Euro as a common currency and its importance for the Euro zone. All in all, his incarceration and the possibility of going for trial, threatens the resolution of the problems in Greece and make us wonder if the Euro can survive.  John Lipsky, a competent executive is in charge of the IMF for the time ...

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The New Brazil at the Colony Club
May 11, 2011 13:06:25 | 2 comments

Yesterday, I attended a presentation at the Colony Club in NY about Brazil. As you all know, it is the city’s most exclusive and prestigious private women's social club. The speaker was Dr. Riordan Roett and he was talking about the changes that have taken place in Brazil in the last decade, the emergence of the middle class, the growth of the country and its business. All very positive and, as he mentioned in the beginning of the lecture, he was going to leave out the “bad” things about Brazil. As a Brazilian, I felt very good that the perception of the country is changing in a positive way. Almost 15 years ago when I first arrived in New York I was disappointed to see how people, even educated people, were misinformed or not informed at all about Brazil.  Who would think that Brazil would be a theme in a “wasp” club?  It is good to see things changing, Brazil changing, and  I hope we can overcome the obstacles we have ahead because it is not all rosy and blue. We have serious issues on the political system,on  education, justice and also some economic issues that need to be addres...

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The king is naked....
April 18, 2011 14:54:04 | 1 comments

The stock market has been climbing a “wall of worries” for quite some time: tsunamis, earthquakes, nuclear threats, fiscal deficits, middle east crises and war, oil price increases, euro zone defaults, nothing was capable of stopping the rising stocks. Then the S&P announces it is cutting the US outlook to negative: the markets wakes up and tumble. It is very interesting to see how the market reacts: the facts are here, for a while actually, but it was necessary a formal cut from an agency that in the past was not capable of downgrading banks and mortgage instruments to cut the outlook for the market to wake up.

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Capital Offense
April 01, 2011 20:52:30 | 0 comments

I just finished reading Capital offense, by Michael Hirsh. It is a great book, even for those who have no economics knowledge. It helps to understand the ideology that prevail in Washington in the past 20 years and led us to 2008 crisis. That ideology is still dominant in Washington, even under President Obama (unfortunately) and that probably explains why the White House has been so silent on some very important matters. It is repulsive to see old practices coming back. The author show in a very interesting way, why the free market theory is a myth and how those who believe on the fairy tale, led us to the worst economic crisis since the depression.

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I told you so.....
April 01, 2011 20:41:42 | 0 comments

On March 15th, I advised those who invest in the stock market to sit tight and wait. If you did that you are a happy woman ( or man). Who would say, after the middle eats rebellions and the Japan nuclear problems that today we would see a headline saying "Dow starts quarter touching a 3 year high". That is the market and you have to see beyond the the trees, you have to look at the forest. I am bullish: the recent earnings season have been positive, the impact of the stimulus that the GOP loves to criticize had his impact in the economy. Mostly, american companies are starting to use their cash and the consumer is more confident. Why wouldn't he? Just look around, look at the world and seethat the american consumer, at least in the short term, has reasons to be optimistic. Look at Japan, Europe, even the emerging markets . Meanwhile, find a way to make sure that the Republicans start to loose ground. Wisconsin democrats are doing the first recall and that is really good news.

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