Tuesday, July 5, 2011

Brazil risks tumbling from boom to bust

 
47% interest rate? Wow, and we think rates are high here. I think the most interesting thing about this article is that it highlights how easy money fueled the economic boom in Brazil over the past few years. We have all learned about boom and bust credit cyles and the 'illusion' of wealth that comes with it, look at the recent housing bubble. The question is not 'if' credit bubbles burst, but 'when'...