JUST A FEW months ago it all seemed so straightforward - at
least to Wall Street. In the minds of investors, after
unprecedented economic stability under Brazil's outgoing president
Fernando Henrique Cardoso, voters in the October elections would
recognize that it was in their best interests to opt for the
government's candidate, Jose Serra. That way stability would be
cemented.
Enter Luiz Inacio Lula da Silva, the man who spooked the markets.
Described by some as a "dangerous leftist" and a "crackpot
Marxist", Lula - as he is popularly known - is making his fourth
attempt on the presidency and is ahead in the polls, cementing his
lead over the ruling PSDB party's Serra.
The mere thought of a Lula victory has pushed Brazil into
pre-election turmoil. The real is at its most volatile since it was
created eight years ago. It has lost more than a third of its value
since January, trading at...
