A case study in Brazil's economic troubles

Comments (7)
Greedisgreed wrote:

What the hell should a Norwegian group of greedy investors have to do with Brazilian power prices I ask. Go and buy a bottle of $1 cachaca in Oslo for $50 and the answer is clear…

Dec 03, 2012 2:41pm EST  --  Report as abuse
Greedisgreed wrote:

What the hell does a greedy Norwegian investment group have to do with electricity prices in Brazil I ask… Why does a 1$ bottle of Brazilian Cachaca (sugar cane alcohol) cost $50 in Oslo? Greed!!!

Dec 03, 2012 3:01pm EST  --  Report as abuse
rust12 wrote:

I hope Brazil doesn’t become another Argentina!

Dec 03, 2012 3:27pm EST  --  Report as abuse
DavidJoe wrote:

As a Brazilian, what I can say is that the only thing really wrong with Dilma’s market interventions are the rather sudden, heavy-handed way they’re being implemented. The point is that for decades many (most?) internal markets such as energy, finance, automobile, construction and on and on have been run by de-facto trusts, exacting huge profits at the expense of the end-customers. During the hyperinflation years (up to 1994) and also during the high-interest (>10%) years that lasted until very recently, stratospheric profits were almost a necessity for any enterprise to be worthwhile, given that large gains could be made at low risk by simply lending to the government. Those days seem to be over, but the markets are anything but keen on regulating themselves to a saner standard. Hence government action. Of course, anyone counting on the continuation of business as usual will be hurt short-term, but the extra push to customers and small businesses should lift the whole economy in the medium to long term. Having said that, it would of course have been preferable for such measures to be debated and passed through Congress, but anyone familiar with the political process here will know how long that would take (and suspect what the price to taxpayers would be).

Full disclosure: I voted for Dilma in the runoff round of the previous election, not because I like her or Lula so much but because the opposition was even worse.

Dec 03, 2012 4:07pm EST  --  Report as abuse
Harry079 wrote:

Iceland

Ireland

I guess Norway didn’t get the message.

Dec 03, 2012 4:27pm EST  --  Report as abuse
VonHell wrote:

Brazilian services (eletricity, internet, roads, etc): regional monopolies, poor quality, low investments, high prices, low respect for consumers… high profits…

Solution: cut their profits…

Dec 03, 2012 4:56pm EST  --  Report as abuse
paintcan wrote:

@DavidJoe – The state owns the dams – does it also own the grid or parts of it?

Dec 04, 2012 10:30pm EST  --  Report as abuse
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