How the full opening of the capital account to highly liquid financial markets led Latin America to two and a half cycles of ‘mania, panic and crash’

Latin America has recently experienced three cycles of capital inflows, the first two ending in major financial crises. The first took place between 1973 and the 1982 ‘debt-crisis’. The second took place between the 1989 ‘Brady bonds’ agreement (and the beginning of the economic reforms and financial liberalisation that followed) and the Argentinian 2001/2002 crisis, and ended up with four major crises (as well as the 1997 one in East Asia) — Mexico (1994), Brazil (1999), and two in Argentina (1995 and 2001/2). Finally, the third inflow-cycle began in 2003 as soon as international financial markets felt reassured by the surprisingly neo-liberal orientation of President Lula’s government; this cycle intensified in 2004 with the beginning of a (purely speculative) commodity price-boom, and actually strengthened after a brief interlude following the 2008 global financial crash — and at the time of writing (mid-2011) this cycle is still unfolding, although already showing considerable signs of distress. The main aim of this paper is to analyse the financial crises resulting from this second cycle (both in LA and in East Asia) from the perspective of Keynesian/ Minskyian/ Kindlebergian financial economics. I will attempt to show that no matter how diversely these newly financially liberalised Developing Countries tried to deal with the absorption problem created by the subsequent surges of inflow (and they did follow different routes), they invariably ended up in a major crisis. As a result (and despite the insistence of mainstream analysis), these financial crises took place mostly due to factors that were intrinsic (or inherent) to the workings of over-liquid and under-regulated financial markets — and as such, they were both fully deserved and fairly predictable. Furthermore, these crises point not just to major market failures, but to a systemic market failure: evidence suggests that these crises were the spontaneous outcome of actions by utility-maximising agents, freely operating in friendly (‘light-touch’) regulated, over-liquid financial markets. That is, these crises are clear examples that financial markets can be driven by buyers who take little notice of underlying values — i.e., by investors who have incentives to interpret information in a biased fashion in a systematic way. Thus, ‘fat tails’ also occurred because under these circumstances there is a high likelihood of self-made disastrous events. In other words, markets are not always right — indeed, in the case of financial markets they can be seriously wrong as a whole. Also, as the recent collapse of ‘MF Global’ indicates, the capacity of ‘utility-maximising’ agents operating in (excessively) ‘friendly-regulated’ and over-liquid financial market to learn from previous mistakes seems rather limited.

How the full opening of the capital account to highly liquid financial markets led Latin America to two and a half cycles of ‘mania, panic and crash’

Latin America has recently experienced three cycles of capital inflows, the first two ending in major financial crises. The first took place between 1973 and the 1982 ‘debt-crisis’. The second took place between the 1989 ‘Brady bonds’ agreement (and the beginning of the economic reforms and financial liberalisation that followed) and the Argentinian 2001/2002 crisis, and ended up with four major crises (as well as the 1997 one in East Asia) — Mexico (1994), Brazil (1999), and two in Argentina (1995 and 2001/2). Finally, the third inflow-cycle began in 2003 as soon as international financial markets felt reassured by the surprisingly neo-liberal orientation of President Lula’s government; this cycle intensified in 2004 with the beginning of a (purely speculative) commodity price-boom, and actually strengthened after a brief interlude following the 2008 global financial crash — and at the time of writing (mid-2011) this cycle is still unfolding, although already showing considerable signs of distress. The main aim of this paper is to analyse the financial crises resulting from this second cycle (both in LA and in East Asia) from the perspective of Keynesian/ Minskyian/ Kindlebergian financial economics. I will attempt to show that no matter how diversely these newly financially liberalised Developing Countries tried to deal with the absorption problem created by the subsequent surges of inflow (and they did follow different routes), they invariably ended up in a major crisis. As a result (and despite the insistence of mainstream analysis), these financial crises took place mostly due to factors that were intrinsic (or inherent) to the workings of over-liquid and under-regulated financial markets — and as such, they were both fully deserved and fairly predictable. Furthermore, these crises point not just to major market failures, but to a systemic market failure: evidence suggests that these crises were the spontaneous outcome of actions by utility-maximising agents, freely operating in friendly (light-touched) regulated, over-liquid financial markets. That is, these crises are clear examples that financial markets can be driven by buyers who take little notice of underlying values — investors have incentives to interpret information in a biased fashion in a systematic way. ‘Fat tails’ also occurred because under these circumstances there is a high likelihood of self-made disastrous events. In other words, markets are not always right — indeed, in the case of financial markets they can be seriously wrong as a whole. Also, as the recent collapse of ‘MF Global’ indicates, the capacity of ‘utility-maximising’ agents operating in unregulated and over-liquid financial market to learn from previous mistakes seems rather limited.

Taxonomic redescription and biological notes on Diaugia angusta (Diptera,Tachinidae): parasitoid of the palm boring weevils Metamasius ensirostris and M. hemipterus (Coleoptera, Dryophthoridae)

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Description of a new species of skate of the genus Malacoraja Stehmann, 1970: the first species from the southwestern Atlantic Ocean, with notes on generic monophyly and composition (Chondrichthyes: Rajidae)

O primeiro registro para o Atlântico Sul ocidental de uma espécie do gênero Malacoraja Stehmann, 1970 é feita com base na descrição de Malacoraja obscura, espécie nova, proveniente do talude continental do Sudeste brasileiro dos estados do Espírito Santo e Rio de Janeiro em profundidades de 808-1105 m. A espécie nova é conhecida através de cinco exemplares e é distinta de seus congêneres pela sua coloração dorsal composta por numerosas manchas esbranquiçadas e pequenas na região do disco e nadadeiras pélvicas, por apresentar uma fileira irregular de espinhos ao longo da superfície dorsal mediana da cauda a qual persiste em espécimes maiores (desde a base da cauda até dois-terços do seu comprimento numa fêmea de 680 mm de comprimento total, CT) e uma região pequena desprovida de dentículos na base ventral da cauda (estendendo somente até a margem distal da nadadeira pélvica). Outros caracteres diagnósticos em combinação incluem a ausência de espinhos escapulares em indivíduos maiores, número elevado de fileiras dentárias (64/62 fileiras num macho subadulto de 505 mm de CT e 76/74 numa fêmea de 680 mm de CT) e de vértebras (27-28 Vtr, 68-75 Vprd), coloração ventral do disco uniformemente castanha escura, duas fenestras pós-ventrais na cintura escapular, fenestra pós-ventral posterior grande, forame magno circular e dois forames para a carótida interna na placa basal ventral do neurocrânio. Machos adultos não são conhecidos, porém uma descrição anatômica de M. obscura, sp. nov., é fornecida. Comparações são realizadas com todo o material conhecido de M. kreffti, com a literatura sobre M. senta e com material abundante de M. spinacidermis da África do Sul; M. obscura, sp. nov., assemelha-se mais a M. spinacidermis do Atlântico Sul oriental em esqueleto dérmico, coloração e tamanho. Malacoraja é monofilético devido à sua espinulação e apêndices rostrais conspícuos e é aparentemente composta por dois grupos de espécies, um para M. obscura e M. spinacidermis e outro para M. kreffti e M. senta, porém a elucidação das relações filogenéticas entre as espécies necessita de mais informações anatômicas, principalmente das duas últimas espécies.

NOTES on THE BIOLOGY and BEHAVIOUR of THE JEWEL WASP, AMPULEX COMPRESSA (FABRICIUS, 1781) (HYMENOPTERA; AMPULICIDAE), IN THE LABORATORY, INCLUDING FIRST RECORD of GREGARIOUS REPRODUCTION

Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)

Morphological Notes on the Worker and Queen Larvae of the Thief Ant Solenopsis helena (Hymenoptera, Formicidae, Myrmicinae) from Brazil

Young and mature larvae of queen and workers of the thief ant, Solenopsis helena, are herein described for the first time. Specimens were treated and described by usual methods of light and scanning electron microscopy. Many of the observed characteristics confirmed traits of the thief ant larva, reinforcing the assumption that they are a distinct group from fire ants. The larva of S. helena can be recognized from other close species by details of the mouthparts, but seem extensively similar to Solenopsis molesta. These findings are useful for taxonomic studies and phylogenetic inferences.

Description of the larva of Mnesarete pudica (Hagen in Selys, 1853) (Odonata: Calopterygidae) and notes on known genera of South American Calopterygidae larvae

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)

A new species of Tontelea from Amazonian Peru and Ecuador, and notes on the Tontelea attenuata species group (Celastraceae, Hippocrateoideae)

Tontelea fuliginea differs from other species whose stamens alternate with undivided stigma-lobes by its profusely ramified, many flowered, and densely dirty-brown puberulous inflorescences. This paper also provides a synopsis and key of the group of species with alternate stamens and 3-lobed stiomas with undivided lobes (T. attenuata group). Four lectotypes are designated for previously published names: Tontelea longifolia, Tontelea micrantha, Tontelea corrugulata, and Salacia micrantha var. lancifolia.

Anatomy of the pericarp and seed-coat of Lithraea molleoides (Vell.) Engl. (Anacardiaceae) with taxonomic notes

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

A New Species of Meliosma (Sabiaceae) from Southeastern Brazil and Notes on the Genus

Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)

Social and financial aspects of the artisanal fisheries of Middle Sao Francisco River, Minas Gerais, Brazil

The presence or absence of motorized boats, partnerships and multispecies catches characterize the fisheries of Sao Francisco River, Minas Gerais, Brazil. Fishing activity based on 109 interviews, carried out in the wet (high water: February and March) and dry (low water: July and August) seasons, with professional fishermen are described. Aiming to identify the fishery income components, a covariance model was proposed, with the income as the response variable, related to the factors: fishing ground, use of motorized or paddle boat; seasonality; presence of fishing assistant, and the following covariates: capture in weight in the week Frier to the interview, fisherman experience in yrs; and distance (km) travelled for fishing. The results indicated that the main contributions to income were the absence of an engine (because of high price of the fuel), the absence of a partner (because of low capture) and the amount of fish caught by the fishermen.

Habits hidden underground: a review on the reproduction of the Amphisbaenia with notes on four neotropical species

We review the information currently available on the reproduction of the Amphisbaenia and provide original data on the reproductive biology of four Neotropical species: Amphisbaena alba; A. mertensi; Cercolophia roberti, and Leposternon infraorbitale. In total, we compiled data for 22 species: 17 Amphisbaenidae, 1 Rhineuridae, 3 Bipedidae, and 1 Trogonophidae. The majority of the species were oviparous with the exceptions of Loveridgea ionidesii, Monopeltis anchietae, M. capensis, and Trogonophis wiegmanni. Viviparity was interpreted as a derived trait that evolved independently for at least 3 times within the Amphisbaenia. In most species, reproduction is synchronized with the hot and rainy season and seems to vary with latitude. Although Amphisbaenia eggs have been found in ant nests, it remains disputable whether this is an obligatory or even a preferable location for egg-laying. Incubation time in A. mertensii lasts 59 days and this is the first report encompassing egg-laying to hatching for any Amphisbaenia species. Nonetheless, a two months incubation period seems to be the common rule for oviparous Amphisbaenia. The general pattern of reproductive output in Amphisbaenia is characterized by a low number of eggs/embryos per clutch whose individual size is comparatively large in relation to adult body size. Eggs are markedly elongated on the long axis and arranged in-line within the abdominal cavity possibly to prevent/diminish biomechanic drawbacks of egg bearing. Hatchlings of A. mertensi possess an egg-tooth implanted at the upper jaw, exhibit positive geotropism, and display defensive behaviors known to be present in adults. Our review shows that our current knowledge of Amphisbaenia reproduction is fragmentary, often based on the examination of small samples, and heavily dependent on the publication of anedoctal observations. Future publications on this subject are encouraged.

Diet of the colubrid snake, Thamnodynastes strigatus (Günther, 1858) from Paraná State, Brazil, with field notes on anuran predation

São apresentados dados da dieta de Thamnodynastes strigatus (Serpentes: Colubridae), a partir da dissecção de 44 espécimes. No tubo digestivo dos exemplares examinados foram encontrados anfíbios anuros (71,4% da amostra), roedores (14,3%), peixes (10,7%) e lagartos (3,6%). A maioria das espécies de anuros (Bufo sp., Leptodactylus sp., Physalaemus cuvieri e Scinax fuscovarius) encontradas no exame de conteúdo estomacal de T. strigatus, utiliza o solo ou o nível d'água como sítio de vocalização. Também são apresentados dados sobre a observação de eventos de predação na natureza.

Notes on the overall coefficient of the two-loop superstring amplitude using pure spinor

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)