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Non-Tech : The Brazil Board -- Ignore unavailable to you. Want to Upgrade?


To: THE ANT who wrote (1140)9/13/2012 8:40:06 AM
From: elmatador  Read Replies (2) | Respond to of 2508
 
higher interest rates = higher inflation= lower GDP
Message 28016201 interest rates

Lower interest rates= increased credit/GDP= increased asset values

which in Brazil will mostly be housing values.Until Credit/GDP hits about 130% (assuming credit isnt made very easy for real estate) it is not truly a bubble but a real increase in housing/asset value.

Throw into that that the per capita GDP of the Brazilian will be well above that of Southern europe and maybe the US in the next 25 years and you have a good investment.

Now if housing goes up by 100% in the next 7 years, you can sell. I spent the last 20 yeas telling people that Brazilian housing price would go to or above US housing (as it did in 1972) and no one believed me.I now tell Brazilians in US (including my kids) thay they will in their old age get as good a health care and better retirement in Brazil than US and they dont believe that.It is amazing to me how inflexible the human mind is
Message 28018491