An Ominous Collapse Casts a Shadow Over Rio de Janeiro -

"For two years running, Latin America's largest nation has been convulsed by nothing but miserable news. Its economy is in tatters, the president may be forced out of office, and a rolling corruption scandal has shattered the reputations of moguls and political legends.

But there was always Rio. Back in 2009, when the International Olympic Committee announced that this legendary seaside city would host for the 2016 Summer Olympic Games, the country was elated. Back then, Brazil was on the rise and eager to show the world how far it had come. And what better way to celebrate than to stage the globe's most prestigious sporting event against the granite plinth of Sugarloaf Mountain and majestic Guanabara Bay, or on a cycling course built over the pounding Atlantic? Even as Brazil stumbled, Rio seemed charmed.

City authorities hurled up bridges, expressways and sports arenas at a frantic pace. In a land known for construction delays and huge cost overruns, there were doubts: The nation's biggest corruption scam on record, after all, was wrought by the continent's biggest builders, some of whose directors have been convicted for padding budgets, gaming public works contracts, and paying kickbacks to politicians for sweetheart deals. In 2014, International Olympics Committee vice president John Coates returned from a site visit to describe Rio's preparations as "the worst" he'd ever seen. And that included the 2004 Athens Games, which set the benchmark for chaotic delays and construction glitches.

And yet Rio's ambitious mayor, Eduardo Paes, seemed to skate above the turmoil. "

more in he story by Mac Margolis​ >>

An Ominous Collapse Casts a Shadow Over Rio de Janeiro - Bloomberg View