If Dilma Rousseff was an arbitrage then, whoever took a bet against her losing the coveted seat of the Brazilian presidency would have lost billions of dollars.
The market has punished the country’s outlook, Brazil is now carrying a junk rating across major credit rating agencies.
The position of the Brazilian president is no longer vacant. Rousseff has been saved by the acting speaker of the Brazilian parliament. As a rude shock to geopolitics analysts and the markets, Brazil might be having a cautiously stable outlook if the country’s opposition sheath their swords.
Rousseff’s offence was not an alleged corrupt practice but an accusation that she used creative accounting to increase government spending which gave herself an edge in an election year. Whatever creative accounting means, is left for varied interpretation.
In the parlance of her adversaries, a festering opposition against Brazil’s socialist government argued that her use of such practice is a breach of trust which invalidates her position as Brazil’s number one citizen. Rousseff also suffered from her closeness from Lula Da Silva, Brazil’s former president who was her mentor and vigorously campaigned for her during her first and second term elections. Her attempt to make Lula her chief of staff, a creative move for her to placate and lobby Brazil’s politicians, further infuriated her enemies against her.
Rousseff herself is like a ‘cat with nine lives’. She was imprisoned during Brazil’s dictatorial. Her boldness through out her trial was commended by many of her followers who rallied side by side opposition protesters across Brazil’s major cities.
Since spanners has been through into the works of her detractors, Rousseff has gotten a breather to focus on her role as Brazil’s president. The market has punished the country’s outlook, Brazil is now carrying a junk rating across major credit rating agencies. Except for Fitch who still retains Baa3 rating, S&P and Moodys’ has cut Brazil to junk.
The country will be hosting the Olympics, a hitch free event is expected. Brazil’s needs to saved from the worst recession that is waiting around the corner.
