First Argentina. Then Turkey. Could Brazil be next?
Mohamed El-Erian hinted at exactly that as the Brazilian real led major currency losses Wednesday, even after the nation’s central bank offered $1.5 billion in extra swap contracts to keep it above water.
Brazilian policymakers are in a “tricky position — and there’s little room for error,” El-Erian, the chief economic adviser to Allianz SE and a Bloomberg Opinion contributor, wrote on Twitter.
In this discussion with CNBC’s Rick Santelli and Harvard’s Professor Ken Rogoff, Santelli tries to get optimistic Rogoff to explain the monstrous debts.
In the End Rogoff caves in and say’s we need to extend the maturity of the debt and lock in low rates before something bad happens.