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Mr. Berlusconi has struggled to assert authority over his increasingly fractious majority in Parliament as a widening debt crisis racks markets in Europe and threatens Italy.
But they also worry that elements out of their control — a widening debt crisis in Europe and fears of a slowdown in global growth that have been rattling markets — could undermine Portugal's efforts.
The prosecutors are also investigating whether any crimes were committed during a sell-off in Italian assets on July 8 and July 11 as fears spread that the euro zone's third largest economy is being sucked into the widening debt crisis.
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Stocks pushed past concerns over a widening European debt crisis and closed higher on Wall Street on Wednesday, after the Federal Reserve reassured investors that the economy was improving and left interest rates untouched as predicted.
On Wednesday, with the yield on Italy's 10-year bonds rising to 6.19 percent — close to the levels that prompted other nations to seek bailouts — Italian officials held a series of emergency meetings, hoping to add substance to promises that could forestall the country from being dragged deeper into the widening European debt crisis.
A fresh reminder of the current crisis's contagion dangers came on Tuesday, when France rushed to defend its AAA credit rating — one of the few top ratings left among major Western economies — after a warning by Moody's Investors Service that the French government was at risk from the Continent's widening sovereign debt problems.
Second, deficits have widened and debt ratios increased in many countries as they--in most cases, appropriately--let automatic stabilizers operate and used fiscal stimulus to contain the impact of the global crisis.
Americans consider the widening deficit and debt a big deal; they also reject most of the measures necessary to deal with the threat by warning against touching entitlements like Medicare and Social Security or popular discretionary spending programs.
And, he often says, that is the way it should be for a nation with a growing debt and widening income inequality between the rich and the poor.
Maybe, just maybe, at a time of growing debt and widening inequality, we should hold off on giving the wealthiest Americans another round of big tax cuts.
The difference of the yield – effectively the interest rate – on short and long-term dated debt is widening, as a direct result of ECB president Mario Draghi's comments yesterday.
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