VZCZCXYZ0000
OO RUEHWEB

DE RUEHSO #0554 2911032
ZNR UUUUU ZZH
O 171032Z OCT 08 ZDK
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8624
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 9761
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8889
RUCPDOC/USDOC WASHDC 3188

UNCLAS SAO PAULO 000554 
 
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 XM XR BR
SUBJECT: GLOBAL ECONOMY/FINANCIAL CRISIS; U.S. ELECTIONS 
 
Rhythms of the crisis 
 
Editorial in liberal Folha de S. Paulo commenting on the U.S. 
financial crisis (10/17) says: "...It is important to note that the 
stage where fears concerning the solvency of the world's major 
financial conglomerates is beginning to be left behind - however 
absolutely everything, in this crisis, is subject to quick changes. 
Concerns over the crisis' impact on consumption, production and jobs 
sectors are beginning to prevail.... Brazil does not print dollars, 
or Euros; nor does it have a virtually unlimited fiscal capability 
of the rich countries to face the crisis.  But, the Brazilian 
authorities have the chance that its counterparts in developed 
nations didn't have, to act in anticipation to prevent the worst 
effects of the crisis... It is not enough to administer in the short 
term, in the compulsories and in the exchange rate.  It is necessary 
to launch a broad fiscal answer, based on the freezing of public 
expenses, so that the country has better conditions to overcome a 
difficult and unstable year as 2009 will be." 
 
The Last Debate 
 
Editorial in liberal Folha de S. Paulo (10/17) comments: "The third 
and last debate between the candidates for the U.S. presidency, last 
Wednesday, showed to be more interesting than the previous 
ones...However, an incontrovertible victory by the Democratic 
candidate over Mc Cain has not occurred, even though Obama performed 
well and showed himself to be more confident and direct.  The 
numbers overall seem to reproduce a favorable feeling for the 
Democratic candidate.... Before these numbers, very few times a 
direct debate seemed to be so irrelevant to influence the results of 
an election.  It represented more of a ritual to be accomplished 
than a decisive moment.  The devastating economic crisis 
overshadowed the electoral debate and directly harmed John McCain's 
situation.  At 18 days until the elections, it is more and more 
difficult for the Republican candidate to change the game - though a 
turnaround, given the extreme special circumstance of the contest, 
cannot be discarded." 
White