How Much Worse Could It Get For Brazil? | Seeking Alpha

How Much Worse Could It Get For Brazil? | Seeking Alpha: "Summary

Brazil's economy is spiraling lower.

Policymakers are hesitant to raise lending rates, but it may be necessary to keep inflation in check.

President Dilma Rousseff has had few answers to date, making EWZ an unattractive investment until someone gains control.

The iShares MSCI Brazil Capped (NYSEARCA:EWZ) is down nearly 70% since President Dilma Rousseff came into power in 2011. Her most recent blunder was failing to save resources when oil prices were higher, generating substantial revenue for the country. Now that oil prices have declined, policymakers have had to impose taxes to balance the budget, raising inflation, and adversely affecting economic activity. The economy is a mess, and with little reason for optimism, EWZ could continue to weaken."



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