OGJ Editorial: Turbulence in Brazil

With Brazil under financial siege, there's talk of contagion in South America-a regional economic slump like the one that cascaded through Asia in 1997 and threw the oil market into reverse. If economic malaise is indeed spreading like illness in South America, two questions arise: Will there be global effects comparable to those that followed Asia's swoon? And what, exactly, is the nature of the disease?The first question is the easier to answer. Global effects won't be great. In terms of its shares of worldwide economic output and the oil market, South America is no Asia. Nor is it the oil market's growth area, as Asia was when it slumped. This, of course, is small conso...

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