Wednesday, October 16, 2013

The pace of global economic recovery has slowed since the beginning of the year. The debt of most O

The housing bubble is formed in Brazil - Luiz Manarin Luciano D'Agostini | Real Estate Bubble in Brazil
As suggested by Rodrigo reader, we reproduce an excellent article, perhaps one of the best and most relevant information published here on the site. The thesis space studies was developed by Luiz Manarin Luciano D'Agostini - Doctor of Economic Development, Federal University of Paraná. Research methods in forecasting monetary policy and professor of Graduate Programs in Finance IBPEX / UNINTER / FACSUL. (Article published in the journal Economics & Technology - Year 06, Vol 23 - October / December 2010 http://www.economiaetecnologia.ufpr.br/boletim/Economia_&_Tecnologia_Ano_06_Vol_023.pdf).
At the beginning of November the Central Bank of the United States, the Federal Reserve (Fed) announced the financial market repurchase of U.S. Treasury bonds. With the announcement, there will, in the coming months, an injection of $ 600 billion market. This measure is considered space studies to stimulate a recovery, can be the missing piece to the risk of the formation of a true asset bubble in emerging countries, including Brazil. And this bubble will also affect the real estate market. The warning was made by the Organization for Economic Cooperation and Development (OECD) and the United Nations (UN).
In the OECD review, the resources injected in rich countries over the last two years, 2009 and 2010, and especially in recent months, gave clear demonstrations that are not being disposed in local economies who injected such resources, if Europe and the United USA.
Substantial part of this mass of money injected in developed economies would have been destined for emerging economies. According to the OECD, some evidence suggests threaten space studies and strengthen an increasing tendency to create space studies asset bubbles in equities market, the real estate market in emerging countries and an appreciation of the currencies of emerging countries space studies against the dollar and the euro. Such evidence would be: (i) the new monetary stimulus measures in the United States and Europe, (ii) the maintenance of a perverse interest space studies rate that compensates U.S. bonds close to zero in the short term, (iii) the fiscal problems in developed economies (especially in peripheral countries of the eurozone, such as Greece, Ireland, Portugal, Spain and Italy), (iv) interest rates still high in developing countries, particularly Brazil and South Africa, which by arbitrage gains between interest rates, press the country's currency emerging to appreciate against the currency of a developed country.
Emerging countries cited in the OECD, Brazil is among the countries space studies that should be concerned with the process of creating housing bubbles, asset bubbles in the financial market and appreciation space studies of the local currency in the coming space studies months.
Supachai Panitchpakdi (2010), current Secretary-General of the UN Conference on Trade and Development, also warned about the process of formation of bubbles and real estate assets in emerging economies such as Brazil. According Panitchpakdi, the new stimulus measures space studies that the United States and Europe have announced in recent months would have a negative impact on these economies and give a nice boost to housing bubbles forming, if not adopt in the near term: measures to contain credit measures to increasing the growth rate of wages above the rate of growth of rising property prices. Instead of turning credit purchases roles U.S. banks generate bubbles in real estate markets of emerging countries.
The fact is that the U.S. economy does not appear to recover, despite very low interest rates and monetary stimulus packages and tax implanted. The lack of good macroeconomic indicators, therefore, space studies not allowed to say that the American economy is clearly recovering. Finally, the lack of capacity of the American economy to absorb resources, and excessive domestic liquidity, has resulted in the transfer of funds to emerging markets in the form of speculative capital. And that means the "export of the economic problems of developed countries to emerging economies."
The pace of global economic recovery has slowed since the beginning of the year. The debt of most OECD countries goes to record highs. When considering the current weak growth in the United States and participating countries in the Eurozone, and considering that inflation expectations remain well anchored in these countries, the normalization of interest rates should happen, according to the OECD, in the first half of 2012, at a pace that would allow monetary policy to remain accommodated.
The finance minister, Guido Mantega, told Brazilian journalists in November 2010, said: "It is no use f

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