Brazil jacks up interest rates to 21%

Doug Henwood dhenwood at panix.com
Mon Oct 14 16:08:33 PDT 2002


Michael Pollak wrote:


>On Mon, 14 Oct 2002, Reuters was quoted as saying:
>
>> Adding to the market jitters were two new opinion polls showing
>> presidential candidate Lula, a former union leader who still spooks
>> investors for past talk of debt restructuring, with a commanding lead
>> over market favorite Serra.
>
>I don't understand why this keeps being reported as developing news, as if
>a lot of reasonable people are hoping for it to change and Serra to make a
>late surge. Lula won 49% of the 1st round vote, and most of the other
>parties endorsed him. Why would anyone think for a moment that he's not
>going to get the remaining 1% plus?

Because powerful people don't want it to happen, they're used to getting their way, and they're incredulous when they hear otherwise.

Doug



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