Having spoken with some friends "down South", my fear is hearing from them how things have steadily taken a turn for the worse. My "adopted family" in Praia Grande tell me how hard it is for people to find work. They're in a resort town but own a business that does not rely on the tourism industry, but from what they tell me it's getting harder and harder to make a real.
The other aspects of the situation that concern me are the growth of the power of labor unions. Truckers, general utilities and other essential services have become strongholds for unions, with all of the socialist/communist propaganda being spread among it's members that you could expect. One trucker's strike down there while back resulted in rioting, looting, murder and general shut down an area near Sao Paulo for about a week. Not a pretty scene.
The point is that a person with the ability to manipulate such work stopages has the ability to paralize the country and cause vast spread chaos. It's as powerful as having an army at your disposal. Lula is a significant threat to Brasil because his politics are right along the lines of the labor unions.
At any rate, I'd sure hate to see him get elected. Then again, like in your post, I'd sure love to have my friend live within driving distance!
Tanta saudade por meu Brasil... Oh well. Nice place to visit, but there ain't no place like home.