Tracking the Implosion of Brazil; Be Careful of What You Wish; Perfect Storm; Email from Brazil; More Intervention Madness

"Reader Lucas from Brazil writes about the "perfect storm". 

 Hello Mish

Brazilian interest rates are skyrocketing. Rates went up more than 2 percentage points in a month. Bond trading was suspended due to the quick devaluation.

Nobody is talking much about it, but energy corporation Petrobras is down 95% from the peak (in dollars). They have a high dollar exposure, and some estimates say that since June, Real devaluation alone was responsible for a +R$100B increase in debt.

Brazil's majors oil investments are in (really) deep water drilling, and they may be not worthy anymore. Petrobras debt is now equivalent to 8% of the whole country GDP.

And while. our president doesn't have support to do anything.

It's a perfect storm here.

Lucas

Petrobras

In classic bubble action, shares of Petrobas went from $4 to $77 back to $4. Executives no doubt, cashed out at every opportunity.

Brazil Real

The Brazilian Real went from 1.6 to the US dollar to 4.1 to the US dollar. That's a decline of about 54% .

Brazil 1-Year Government Bonds

Since 2007, the yield on 1-year Brazil government bonds went from just over 7% to over 16%..."

at http://globaleconomicanalysis.blogspot.com/2015/09/tracking-implosion-of-brazil-be-careful.html#zBj3SiguBc0PMOPt.99