The world has become a global economy, according to Brazil financial expert Igor Cornelsen. One nation’s policy can impact another on the other side of the globe. As 2017 approaches, does wealth manager Igor Cornelsen believe that “austerity” will be the top story?
“Austerity Is Necessary”
Individuals, businesses and governments all have debts to pay. When a nation has spent too much, then it will need to increase its income or cut its costs. Perhaps, this is what is happening in Brazil.
Brazil had a great run of tremendous growth from 2002 to 2008. Brazil’s high growth rates made other nations jealous. Include the World Cup and Olympics after that and the accomplishments are quite amazing for the country.
But, just as a race car needs to be cooled down after awhile, the Brazil economy needs to cool down too. Certain elements, need to be readjusted. The good news, is that Brazil is making the tough austerity decisions. that can right the course. Follow Igor Cornelsen on Twitter
“Cleansing Failed Businesses”
Capitalism gives business owners the rights to take risks to see if they will succeed or fail. Those companies, which fail, should seek bankruptcy. Some of the banks might be merged together, such as Itau and Unibanco in 2009.
The Itau&Unibanco merger allowed for the firms to “write off” the bad debt and protect the good debt. This ensures that the banking system can re-emerge healthier thereafter.
The same can be said of Europe. The PIIGS are being forced to cut back and determine which businesses are solvent.
“Brazil Reforms Itself”
Cutting back can be difficult. Gradually, Brazil is showing its maturity in saying “No” and making the tough decisions, which are necessary.
Brazil might be in the midst of austerity. If you want to find a good Brazil company to choose, then wealth manager Cornelsen can help. He has years of experience in the Brazil banking industry.
Austerity is a necessity, allowing individuals, businesses and governments to balance their budgets. This is part of being fiscally responsible. Brazil banking expert Igor Cornelsen can guide you through the process.