Archive for May 19th, 2016

Igor Cornelsen Can Explain What Happens “After Dilma”05.19.16

So Brazil’s President Dilma has been suspended, now what? Is Brazil a safe investment? Listen to what Brazilian banking expert Igor Cornelsen thinks about Brazilian investing going forward…

Why Was Dilma Suspended?

Corruption was the charge that got Dilma suspended, but why was a man who was also being investigated allowed to replace Dilma: Vice President Michel Temer. Does something smell fishy?

Brazilians have increased their expectations as a member of the BRICS. Unfortunately, the economy declined under Dilma. When Dilma too office in January 2011, the currency exchange rate was 1.0 Brasil real to 0.60 US dollars. In April 2016, the currency exchange rate was 1.0 Brasil real to 0.28 United States dollars. Thus, part of the cause for Dilma’s suspension might have been poor economic performance.

Did Brazil Suffer in 2008?

In 2008, the United States told the world that Capitalism was about to collapse if the bankers were not bailed out. The global capital markets froze up. How bad was the crisis in Brasil?

The truth is that Brazil fared better than many nations for one simple reason: Brazil banks did not purchase toxic American mortgage-backed securities (MBS). While there were fewer foreign investors in Brazil, the banking sector was quite well-insulated.

Understanding Brazilian Banking

Brazil’s Native Son  Cornelsen has explained the ins-and-outs of Brazilian banking through a PR Newswire release found here. A nation’s banking sector is a microcosm of the culture. Brazil simply has its own way of doing things.

While the United States was starting its Civil War, Brazil was starting its Caixa Economica Federal in 1861. Caixa is the public bank responsible for unemployment insurance, Bolsa Familia and 70% of the nation’s mortgages. The Brazilian banking market has a high upside, according to Igor Cornelsen.


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