Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (7785)	9/10/1998 6:35:00 PM
From: MGV	Respond to of 22640

Steve and all, Reasons why Brazil will not devalue: 1. It would in one fell swoop reverse all of the country's hard work to position itself for social and economic development. It would hurt Brazil and its people greatly. 2. Cardoso would sooner withdraw from the campaign. 3. It would make the race with Lula frightful to trading partners and both Brazilian and foreign capital investors. 4. If the west allows Brazil to fail, there are hundreds of emerging market governments that will abandon free market reforms. If the IMF, the World Bank, and the Inter-American Development bank want to stay in business in this hemisphere, they will not allow it to happen. They have a player in Cardoso and can't leave him out to dry. 5. There are a number of measures - though not ideal - that remain to be done to defend the real. 6. U.S. banks and U.S. multinationals with prospects in Brazil are lobbying hard for U.S. Government support. (This is where the Clinton distraction could be an issue - i.e. failure to respond fast enough in Washington). 7. Until now, the problem has appeared to be containable. That is beginning to change. It will soon move faster than any assistance can be implemented. Support will come very soon.