Global Geopolitics Net Sites / IPS
Monday, October 13, 2008
All rights reserved, IPS – Inter Press Service, 2008.
Mario Osava*
RIO DE JANEIRO, Oct 13 (IPS) – The financial crisis that originated in the United States demonstrates, more clearly than any previous such event, the distance between capital markets and ordinary citizens, especially in developing countries.
Most people in South America have not yet felt the effects of the panic sweeping those with investments in the stock markets, big companies or abroad. But the newscasts are frightening everyone, because of the size of the figures being bandied about, and due to memories of previous economic crises.
In Brazil, the value of the local currency, the real, has dropped by 31.6 percent against the dollar since August, and the Sao Paulo Stock Exchange (BOVESPA) has fallen by 20 percent so far this month, and 44.2 percent since the beginning of the year. The day will come, experts say, when these indices will produce inflation, unemployment and the exacerbation of social ills.
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