How Lula has changed Brazil

Tomorrow, Wednesday 25th March, the world's cuddliest president will announce that the government of Brazil is to build one million new homes for its population. That's not the big change in Lula's Brazil.

The big change is that the majority of his people will actually believe that the houses will be built. This is what Lula has done to his country. Quite remarkable, in fact.

Peru: House sales down 45% in Lima

It must be really annoying for President Twobreakfasts when incontrovertible facts get in the way of his delusions. El Comercio reports that house sales in the capital Lima (by far the most sophisticated real estate market in Peru) dropped 45% in the 4th quarter of 2008 compared to the 3rd quarter. Also notable was the relatively low decrease in top-range housing (-7.4%) compared to the lower socio-economic groups (between 60% and 75% drops reported).

Slightly OT, let's add this report about how Repsol is deferring its $350m investment in the Peru oil&gas sector due to low prices. Then there's this report entitled "Peru Miners: project financing drying up on lower metal prices" from DJNW. And then there's the 8,000 mineworkers already laid off in the first two months of 2009.

All this must be part of that "strong macroeconomic framework" that the idiots at Fitch cited when they reaffirmed Peru's investment grade rating (with a stable outlook!!) in January.