Summery

These days, in Brazil, the “bubble” is growing bigger and bigger. As Salaries increase and mortgages become easier to take out, house prices climb. For example, property prices in Rio de Janeiro have risen more than 250% in 6 years. This is because people in not only Brazil but also other countries invest more and more money in housing market. The 2014 World Cup is held in Brazil and Rio de Janeiro was the host country of the 2016 Olympic Games. Therefore, investors take notices of these events. According to a local, this tendency will continue for the time being.

My opinion

The present situation of Brazil is very dangerous. When the “bubble” crushes, Brazilian economy and people’s lives will collapse. For example of this, Japan experienced the bubble economy and recession after that. From the late 1980s, land prices and stock prices soared, and people invested much money in real estates and stocks. However, in the early 1990s, the “bubble” crushed and many people lost much money. Considering this example, the “bubble” in Brazil will crush in a few years and the money for Olympic will not be secured.In addition, the gap between the poor and the rich is very wide in Brazil. This means that a little recession can break poor people’ lives. Therefore, the Brazilian government should adopt a policy of restraint and calm down the heat of investment.