$hitibank to Brazil: Stop taxing foreign investors' purchases of stocks and bonds....OR ELSE !!!

[marmar]

Brazil Tax May Encourage More Measures, Dennis Says (Update1)
By Veronica Navarro Espinosa


Jan. 19 (Bloomberg) -- Brazil’s success in curbing the rally in the real by imposing a tax on foreigners’ purchases of stocks and bonds is a “scary” and “dangerous” precedent, said Citigroup Inc. equity strategist Geoffrey Dennis.

The success of the tax may encourage officials to adopt more measures to stem the currency’s appreciation, Dennis said at a conference organized by the Brazilian-American Chamber of Commerce in New York.

“It’s kind of scary because it might mean that the government wants to do more things over time should the currency stay strong,” Dennis said.

The real has weakened 3.1 percent against the dollar since the government implemented a 2 percent tax on the purchases of equity and fixed-income assets by overseas investors on Oct. 19. The currency surged 33 percent last year, the best performance among 16 major currencies tracked by Bloomberg, as an accelerating economic recovery and growing demand for commodities lured foreign investors to the country. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aVHkmMWTNSZs&pos=7

[msongs]

1. transaction fee for stocks, bonds, derivatives = good idea. the cause of disaster should pay for the

cleanup and the greedy who profit from wrecking the country can chip in as well.

Msongs

[BeyondGeography]

2. God forbid they should assert some control over their own economy

instead of letting speculators drive up the cost of their currency and destroy their export markets.

[Commie Pinko Dirtbag]

3. Brazil's economy recovered BECAUSE the rich started to be taxed more, and the poor less.

Minimum wage had a huge purchasing power boost. That's unheard of in the last 50 years. It did wonders for the economy.

I really do hope Lula's party's presidential candidate wins this October: http://en.wikipedia.org/wiki/Brazilian_presidential_election,_2010

[marmar]

4. Shhhh.....The Corporate Dominionists and Neolibs don't want that kind of info reaching the people.

nt

[rem3006]

5. Couldn't have named that bank better

if I tried. They should have been broken up and sold off in pieces by FDIC. They are always on the leading edge of disastrous lending. Remember South American debt in the 80's? Commercial real estate in the early 90's? "Too big to fail" needs to be done away with.