We also noted the main reason for the Latin American collapse: Brazil had for the past decade become China's favorite source of commodities, and now that China suddenly no longer needed commodities, the Brazilian economy went into freefall.

We followed this up a month later with "Brazil's Economy Is On The Verge Of Total Collapse" which repeated more of the same, only this time the situation was even worse.

It took the rating agencies 7 months to figure out what our readers had known since 2014, when two days ago S&P downgraded Brazil's credit rating from Stable to Negative citing, what else, the "sharp deterioration of the growth and fiscal consolidation outlook and heightened political/institutional friction" adding that "the negative outlook reflects the agency's view of a "greater than one–in–three likelihood that the policy correction will face further slippage given fluid political dynamics and that the return to a firmer growth trajectory will take longer than expected."

In other words, Brazil is about to become the next BRIC to follow Russia into junk territory: