Quando é Que a Farra Vai Acabar?

Pergunta Moises Naim: It is a reasonable question because there is no doubt that Brazil’s economy is overheating. And while its economic successes have not yet resulted in a financial bubble, they soon could. Paradoxically, it is the reasons for the country’s success that are now the most important sources of concern. During the past five years, credit has grown enormously and is now as large as 45 per cent of the economy. Brazilians have therefore been able to borrow money, many for the first time, to buy homes, motorcycles, refrigerators and other consumer goods. They do not seem to mind that the interest rates on these loans are the second highest in the world, or that Brazilian families today devote a fifth of their income to paying off their debts. [Dica MG]