Leftist Brazilian Victor Moves to Calm Nervous Markets

Brazil is suffering a severe economic crisis. In the past year, the value of Brazilian currency has fallen by 30 percent, and the people are hungry and frustrated. Many now look to President-Elect Luiz Inácio Lula da Silva to guide their country out of dire economic straights. da Silva ran a campaign full of populist rhetoric – inspiring to Brazilians, but frightening to foreign investors who fear that Lula, a former labor leader, will reverse years of free trade-oriented economic policy. Brazilian and world financial markets reflected this fear, plunging at the first hint of Lula’s popularity. Ever astute as a politician, the president-elect is well aware of the world’s expectations. In his first major speech, he tried to appease voters anxious for social reform and also stabilize jumpy financial markets.