I just got back from Sao Paulo late last night and it was pretty obvious that there are a lot of issues. The metro was on strike Thursday and Friday (not all of it but the majority) and I think they are still striking - and the metro is crucial for transportation to the games. The traffic is horrendous, with or without metro strike. The river that runs through the city is filthy, my friends said they had never seen it that bad and it seemed they used huge hoses and pushed all the trash around the river into the river. It looked awful. People were commenting that in generel there were not many flags up and that most people are just not that excited about it, because of the cost overruns and the issues in getting things ready. SP was supposed to have several new transport infrastructure projects that are not done yet. And with the normal traffic being so bad, plus the World Cup guests, I cannot imagine what it will be like. My friends also said that many foreigners who have tickets in the end will not go, because tickets to Brazil and accommodation are so expensive.
In general I found SP kind of depressing, yes, people are super nice, but the differences between rich and poor are SO obvious and enourmous. The traffic is bad in a car, I can only imagine commuting for hours standing on a bus each way. Yes, many people in BsAs have horrible commutes as well, but rich and poor still mingle in the streets. I was delighted to land at Aeroparque last night! (Disclaimer: yes, of course there are lots of problems in Argentina - I am an economist so following the developments here is like reading the chapter on what not to do in the monetary economics book - but BsAs is a city with decent public transport, ease of walking, a "real" city in my book.)