Brazil is on autopilot. Congress could do nothing for the next year, and Brazil would still be a good credit. |
Brazil's benchmark rate will keep on falling until it gets down to a more reasonable single digit rate. The tax cut, along with lower inflation, will certainly help. |
Central Europe, where more good news is priced in, may lag Russia and Turkey. |
I'm certainly expecting a similar kind of cacophony in Prague that we witnessed in Washington, Seattle and almost every other major economic and political event in recent memory. |
It would be a good opportunity to signal a change in interest rate policy. This is a country with single-digit inflation and an interest rate of 20 percent. It's ridiculous. |
It's a country developing very fast and it deserves to have low credit spreads. Investors like myself with pension funds and central banks will just buy into any weakness. |
The possibility of Mexico and maybe Russia trading through Italy is very real. |
The reality is that there's risk everywhere, in every country. We're now in a world where you've got two types of countries: emerging markets, where political risk is priced in, and a whole bunch where it isn't priced in at all. |
This is a lull, not a recovery. In this sort of situation, a small bounce-back happens quite often. (It) is wishful thinking. But the point is, it is not over. |