Brazil: The banks party through the crisis
Duhalde was quick to make it clear that he did not intend Argentina to default on its debt obligations. But Brazil's devaluation in January is still fresh in the minds of investors and after two years of wondering where the next emerging-markets shock will come from, the markets remain jittery. Unfortunately, elections loom in three of Latin America's biggest economies, Argentina, Peru and Chile. Traditionally, in Latin America, elections mean three things: politicians make populist statements, governments loosen the purse strings and capital flees.
In many ways Latin America - or at least South America - is suffering an economic crisis as bad as that in Asia. Although the region has endured repeated financial shocks in recent years, this is the first time for 15 years that the continent as a whole has suffered recession. Brazil's devaluation has brought Ecuador and Colombia to the...
