19 October 2012

BRASIL: 20 Oct UPDATE: Dilma Begins Limits On Credit Card Interest; Itau And Other Bank Stocks Sink.


      President Dilma Rousseff's effort to slash credit card interest rates will soon be reality.
      Credit card interest rates there have averaged...an astounding 323%!
      The average rate in the USA is 17%...and 34% in Mexico.
      Rousseff will now allow credit scoring agencies...to sort good risks from bad...and probably lower rates...to revive consumer growth and spending.
     The central bank recently cut its benchmark interest rate again...to a historic 7.25% low.
     Brasil's annual inflation is 4-5%...and considered acceptable.
     Average consumer credit card rates could drop by 35%...after credit scoring.

     AND: Hot consumer lender Itau Unibanco's stock sank after Rousseff 's plan to finally cut credit rates was announced. 'The times of high returns are over.'