VZCZCXYZ0002
OO RUEHWEB

DE RUEHSO #0474 2521046
ZNR UUUUU ZZH
O 081046Z SEP 08
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8504
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 9640
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8837
RUCPDOC/USDOC WASHDC 3163

UNCLAS SAO PAULO 000474 
 
SIPDIS 
 
STATE INR/R/MR; IIP/R/MR; WHA/PD 
 
DEPT PASS USTR 
 
USDOC 4322/MAC/OLAC/JAFEE 
E.O. 12958: N/A 
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: GLOBAL ECONOMY - MORTGAGE CRISIS 
 
Market of Lies and Kidnappings 
 
Commentary from liberal Folha de S. Paulo (09/08) says: "The U.S. 
government nationalized almost half of the mortgage market.  Wasn't 
it nationalization?. . .  If it were in Venezuela then it would be 
considered nationalization, right?  The "anti-statist" Bush 
administration ends with the largest intervention in the U.S. 
economy since the Great Depression of the 1930's.  But the profits 
were kept by those who created the financial crisis; the government 
tries to avoid more bankruptcy ...but the "rational" and efficient" 
oligarchic financial markets (too big to go bankrupt) have the 
monopoly of a weak technical excuse (to get bailed out).  Does a 
privileged system deserve help when threatening the rest of the 
economy but not have to pay for it during good times.  The other 
name of this excuse, "systemic risk", is kidnapping:  if you don't 
pay the ransom, I'll kill everybody... But many people think that 
the crisis will not stop while the indebted house buyers do not 
receive direct help... But most important of all is: the U.S. 
government says and repeats that it will not let the ball touch the 
ground." 
White