VZCZCXYZ0003
OO RUEHWEB

DE RUEHSO #0078 0371153
ZNR UUUUU ZZH
O 061153Z FEB 09
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8925
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0079
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9014

UNCLAS SAO PAULO 000078 
 
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 XM XR XF BR
SUBJECT: Media Reaction Sao Paulo February 05 2009 
 
Media Reaction - Global Economy: Financial market crisis; Sao Paulo 
February 5, 2009 
 
Title- Fantasy Island 
 
Op-Ed in liberal Folha de S.Paulo (2-5) by Kenneth Maxwell says: 
"....There was an old TV show called 'Fantasy Island'.  Americans 
who are spending their vacations on Caribbean beaches have left the 
dramatic situation of their country behind, for a while. But when 
they go back to Chicago, New York and Boston they are going to 
confront a cold reality." 
 
Title- Banking Crisis 
 
Op-Ed in business oriented Valor Economico (2-5) by Marambai's CEO, 
Luiz Cezar Fernandes, states:  "In this transition in the U.S. from 
the Bush administration to President Barack Obama, it seems that a 
significant break with the past has not happened yet.  For now, the 
thing that is going badly, the direction of the formation of 
committees and work groups - and we know very well that generally we 
do not get good things out of these committees because everyone 
tries to protect themselves and there is no boldness....important 
banks cannot collapse.  The world would not bear it.....A concrete 
proposal would be to replace toxic assets from U.S. banks for long 
term Treasury bonds with a zero coupon." 
 
Title- Crisis questions options for development in Latin American 
 
Op-Ed in business oriented Valor Economico (2-5) by economist Carlos 
Eduardo Carvalho says: "The sharp deterioration in the external 
context in 2008 strongly questions the different alternatives shaped 
in Latin American countries in recent decades, in addition to 
presenting considerable challenges to the political-economic 
policies adopted in recent years.  For now, the reaction of affected 
countries trying to face immediate problems, without breaking with 
general orientations that have been followed....If the crisis 
aggravates or gives its place to a scenario of prolonged retraction 
of the global economy, it is possible that economic policy reactions 
become stronger and more differentiated, in the same way that the 
years of bonanza gave room to distinct options of economic policy, 
even in countries usually grouped under ideological clichs." 
WHITE