Clinton's blood clot: Was concussion to blame?

Update: 10:20 P.M. EST -- Secretary of State Hillary Clinton's physicians released more information about her condition in a statement Monday afternoon:

"In the course of a routine follow-up MRI on Sunday, the scan revealed that a right transverse sinus venous thrombosis had formed. This is a clot in the vein that is situated in the space between the brain and the skull behind the right ear," Clinton's doctors Dr. Lisa Bardack of Mt. Kisco Medical Group, and Dr. Gigi El-Bayoumi of George Washington University, said in a statement. "It did not result in a stroke, or neurological damage. To help dissolve this clot, her medical team began treating the Secretary with blood thinners. She will be released once the medication dose has been established. In all other aspects of her recovery, the Secretary is making excellent progress and we are confident she will make a full recovery. She is in good spirits, engaging with her doctors, her family, and her staff."


Secretary of State Hillary Clinton remains hospitalized at New York-Presbyterian Hospital in Manhattan on Monday for a blood clot.

Clinton reportedly suffered a concussion Dec. 13 after falling and hitting her head after fainting from a stomach virus that caused serious dehydration. She hasn't been seen in public since, but was expected to return to work this week before being hospitalized for the blood clot.





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How serious is Hillary Clinton's condition?






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Hillary Clinton has blood clot in her head




"She is being treated with anti-coagulants and is at New York-Presbyterian Hospital so that they can monitor the medication over the next 48 hours," Spokesperson Philippe Reines said in a statement. There has been no announcement on the location of the clot, which was discovered during the course of a follow-up exam.

Doctors are expected to decide soon whether any further action is required, Reines said, adding that they will continue to assess Clinton's condition, "including other issues associated with her concussion."

A blood clot is a clump that occurs when blood hardens from a liquid to a solid.

Dr. Jack Ansell, chairman of the department of medicine at Lenox Hill Hospital in New York, who has no special knowledge of the secretary's case, tells CBSNews.com he suspects Clinton is either experiencing a clot that originated in a blood vessel in the brain, called cerebral venous thrombosis, or one that could have occurred in one of the veins in the leg, called deep venous thrombosis (DVT).

Ansell's field of study is thrombosis, which is the formation of a blood clot inside a vessel.

Where does Clinton's concussion come in?

Ansell said the brain is rich in substances that stimulate clotting, so in general, people with a brain injury may face a higher risk for having a blood clot. Therefore it's possible a clot could have originated in a nearby vessel in the brain. However, if someone is lying around recuperating following a concussion or stomach virus, that increase in inactivity could also raise risk for DVT, he said. A person who experiences this dangerous blood clot deep in the leg could be at risk if the clot travels to the lung, becoming what's called a pulmonary embolism.

Dr. Richard Figler, a primary care sports medicine specialist at the Cleveland Clinic, told CBSNews.com that he doesn't believe Clinton's head injury was a direct cause of the blood clot, but said timing and other factors could have contributed. He also suspects that Clinton may have rested more following the stomach virus and concussion than she typically does, and going from an active to sedentary lifestyle may have combined with other factors that can influence blood clotting, like age and genetics.

"I'd have a hard time blaming the concussion for the clot itself," he said.

Ansell said these types of clots are easily treatable and respond well to therapy, so while there is potential harm from complications, he would give the secretary a good prognosis. Patients typically receive anti-coagulant therapy for three to six months, he said, and are monitored up to every week with a blood test to ensure they aren't having any blood flow irregularities.

"I would expect her to recover and not have a problem," he said.




Play Video


How serious is Secretary Clinton's condition?




One potential complication from treatment with an anti-coagulant, such as Coumadin (warfarin), is an increased risk for bleeding. That presents a problem for head injury suffers, according to CBS News medical correspondent Dr. Jon LaPook, who is affiliated with the hospital where Clinton is receiving care but has no knowledge of her case.

LaPook says that it is unusual for someone to be given blood thinners after suffering a head injury, because more bleeding in the brain can be deadly.

"The reason is when somebody falls and hits their head, you're worried about bleeding into the skull, into the brain, like Natasha Richardson had, so the last thing you would want to do is thin their blood," he said. "At this point the reason to give anti-coagulation, blood thinner, would be to prevent another clot from forming," he said.

Actress Natasha Richardson hit her head while skiing in Quebec in 2009 and later died from bleeding underneath the skull. That type of clot in the brain is called a subdural hematoma.

LaPook said the doctors treating Clinton may be between a rock and a hard place.

"They want to thin her blood to prevent a further clot, on the other hand they're afraid to give her blood thinners because that could increase bleeding in somebody who's smacked their head recently, so they're going to observe her very closely in the hospital," he said. That observation could also rule out other potential causes for the blood clot, such as heart problems.

Figler said a brain bleed from a head injury is only a major risk within 48 hours of the initial injury, and if the blood clot originated in the secretary's leg, as some suspect, the anti-coagulant therapy shouldn't present a major risk.

Ansell said that while doctors may have balanced Clinton's underlying head injury initially, such as by waiting a few days to make sure brain tissues healed, he also said it's likely safe to treat her with anti-coagulants, adding that many patients with brain injuries or strokes take these types of medication and it's not even certain if the secretary's concussion caused bleeding in the brain.

"I don't think there's any concern for any special risks for bleeding in the brain," he said.

Both doctors also said that anti-coagulants are not typically prescribed for brain bleeds caused by head injuries.

To Figler, the fact that doctors separately diagnosed a clot in addition to the secretary's other recent health woes, speaks to the doctors' ability to find other potential symptoms of a blood clot, such as leg swelling or calf soreness.

"Some docs may say don't worry about it, it could be soreness," he said, noting that a leg ultrasound isn't a typical test given following a concussion. "To be honest, it takes an astute physician to figure those things out."

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Fiscal Cliff Deal Reached; Biden Pitches It to Dems













The so-called "fiscal cliff" came tonight -- but now there is a specific deal on the table to try to soften it after the fact, according to congressional sources.


Senate Majority Leader Harry Reid said the deal would get a vote in the Senate tonight. The House would not vote before Tuesday, having adjourned for the evening before word of the agreement spread.


"It is a compromise, so we don't love it," said a senior White House official. "But it is the right thing to do for the economy."


Vice President Joe Biden met this evening with Senate Democrats in order to convince them to support the proposal, which would extend Bush-era tax cuts permanently for people making less than $400,000 per year and households making less than $450,000, the sources said.


The steep "sequester" budget cuts scheduled to go into effect with the new year would be postponed two months, said sources. They said half the money would come from cuts elsewhere, and the other half from new revenue.


The deal also would affect taxes on investment income and estates, and extend unemployment benefits for a year, the congressional sources added.


Biden was asked to confirm the deal as he entered a meeting with Senate Democrats tonight, but only smiled and said, "Happy New Year." Senators later were seen leaving the meeting later, but made few comments.


"We're waiting to see how the vice president brings his party along," a McConnell aide said.


"The end is in sight," said a Democratic aide with the office of Senate Majority Leader Harry Reid, D-Nev. "If everyone cooperates, it's possible things can move pretty quickly."


After the midnight deadline passes, lawmakers could still prevent a tax hike by making retroactive any legislation that passes in the weeks ahead, experts said. The IRS said it has not yet advised employers to withhold more from their employees' paychecks, pending a deal.






Chip Somodevilla/Getty Images











'Fiscal Cliff': Lawmakers Scramble for Last-Minute Deal Watch Video









But the deal, if it can pass through Congress, does not entirely solve the problem of the "fiscal cliff." In fact, it could set up a new showdown over the same spending cuts in just two months that would be amplified by a brewing fight over how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.


Earlier, during a midday news conference, Obama said he was optimistic about compromise.


"It appears that an agreement to prevent this New Year's tax hike is within sight, but it's not done," he said. "There are still issues left to resolve, but we're hopeful that Congress can get it done."


Congressional and White House negotiators worked out a tentative plan that, in addition to extending current tax rates for households making $450,000 or less, would raise the estate tax from 35 to 40 percent for estates larger than $5 million; and prevent the alternative minimum tax from hammering millions of middle-class workers, according to sources familiar with the talks.


Capital gains taxes would rise to 20 percent from 15, according to a senior White House official.


The deal would also extend for one year unemployment insurance benefits set to expire Tuesday, and avert a steep cut to Medicare payments for doctors, congressional sources said.


"I can report that we've reached an agreement on the all the tax issues," said Senate Minority Leader Mitch McConnell in an afternoon speech on the Senate floor.


At the time, McConnell said that federal spending cuts remained a sticking point. That hurdle later appeared to be cleared by postponing the debate two more months.


The White House had proposed a three-month delay of the cuts to allow more time to hash out details for deficit reduction, while many Senate Democrats wanted a flat one-year delay. Republicans insisted that some spending cuts should be implemented now as part of any deal.


"In order to get the sequester moved, you're going to have to have real, concrete spending cuts," said Rep. Mike Rogers, R-Mich. Without that, he said, "I don't know how it passes the House."


Some Republicans also said Obama unduly complicated progress toward an agreement by seeming to take a victory lap on taxes at his campaign-style event at the White House.


"Keep in mind that just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans," Obama said, raising the ire of several Republicans. "Obviously, the agreement that's currently discussed would raise those rates, and raise them permanently."


Those words drew a sharp retort from Republican Sen. John McCain.


Rather than staging a "cheerleading rally," McCain said, the president should have been negotiating the finishing touches of the deal.


"He comes out and calls people together and has a group standing behind him, laughs and jokes and ridicules Republicans. Why?" said McCain.


Several Democrats also voiced disappointment with the president and the emerging deal.






Read More..

Today on New Scientist: 28 December 2012







Best videos of 2012: Rare view of Challenger tragedy

Watch a rare amateur video of the Challenger explosion, our most-viewed video of the year



Strong jet stream super-charged US Christmas storms

Record snowfall and dozens of tornadoes snarled holiday travel as a powerful winter storm plowed across much of the US, while rainstorms battered the UK



2012 review: The year in life science

The year's biggest stories in life science, including James Cameron's descent into the Mariana trench and efforts to break into Antarctica's buried lakes



Superstorm lessons for adapting to climate change

As the post-Sandy rebuild gets under way, coastal cities around the world will be watching



Best videos of 2012: First MRI movie of childbirth

Watch a unique view of a baby's birth, at number 2 in our countdown of the year's top science videos



Fleadom or death: Reviving the glorious flea circus

The parasite-based sideshows were almost done for by the domestic vacuum cleaner - but they are bouncing back, finds Graham Lawton



Approval for gene-modified salmon spawns controversy

Apparently months late, US regulators have declared genetically engineered fish safe to farm and eat, but final approval could be some way off



Best videos of 2012: New aircraft flies inside out

Watch a novel flying machine use a unique mechanism to propel itself, at number 3 in our countdown of the top videos of the year



2012 review: The year in technology

The year's biggest stories in technology, including Kinect devices that may spot signs of autism and controlling a robot by the power of thought



Superdoodles: The science of scribbling

Far from being a distraction, doodling has an important purpose - and you can harness it



2013 Smart Guide: Wave goodbye to the mouse

The Leap, a 3D motion control device set to launch next year, will let you control your computer with touch-free hand and finger movements





Read More..

Gang hits gem-cutting plant in Brazil, takes hostages






BRASILIA: Military police killed the leader of a gang that had spectacularly blasted its way into a gem-cutting plant on Sunday, traded fire with police and made off with nine hostages who were later safely freed.

Three of the assailants died in the assault in the state of Rio Grande do Sul, a military police official told AFP on condition of anonymity.

The dead included Elisandro Falcao, 31, one of the state's most wanted men. He led a gang that specializes in robberies using explosives to target banks and automated teller machines, reports said.

Surviving attackers fled with their hostages -- one of whom was a 12-year-old girl -- into a wooded area of the town of Cotipora, with police pursuing in cars and helicopters, the official said.

At least 100 military police, backed by helicopters, worked into the night in the search for five assailants and their captives.

After an hours-long operation, police freed all nine hostages safely, but also exchanged more fire with the assailants, killing three more of them, while two police officers were injured, officials said.

The area where the strike was carried out is in the heart of the gem-cutting industry in Brazil, which is a world leader in exporting many semi-precious stones such as topaz, aquamarine and amethyst.

The robbers detonated dynamite to storm into the plant, then ran into police on their way out, the military police official said.

"There was an intense firefight. Three assailants died and two police were injured," Rio Grande do Sul state military chief Sergio Abreu told reporters.

Police have recovered part of the loot, but gave no figure for its value.

As they made their escape, the attackers split into two groups. One took two people who were in a bar hostage, and the other broke into a home and abducted seven people, apparently all members of the same family.

The forest where the gang fled is thick and hard to navigate, but police surrounded it, said state deputy military commander Altair de Freitas.

Helicopters and special operations teams with sniffer dogs took part in the search, he added. News reports said the remaining gang was made up of nine men armed with rifles.

Governor Tarso Genro stressed that the hostages' lives were the top priority.

- AFP/al



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Opinion: 12 lessons

















What we learned in 2012


What we learned in 2012


What we learned in 2012


What we learned in 2012


What we learned in 2012


What we learned in 2012


What we learned in 2012


What we learned in 2012


What we learned in 2012


What we learned in 2012








STORY HIGHLIGHTS


  • Dean Obeidallah: You are smarter today than 365 days ago

  • Obeidallah: You probably learned a few Korean words like "Gangnam Style"

  • He says we found out poultry can be a political tool and some people talk to chairs

  • Obeidallah: The good news is that we'll soon forget the inane lessons of 2012




Editor's note: Dean Obeidallah, a former attorney, is a political comedian and frequent commentator on various TV networks including CNN. He is the editor of the politics blog "The Dean's Report" and co-director of the upcoming documentary, "The Muslims Are Coming!" Follow him on Twitter: @deanofcomedy


(CNN) -- You are smarter today than 365 days ago. You know more than you did at the end of 2011.


And here's the kicker, you may not even be aware of how much you learned this past year. It's analogous to how you're affected by the hit songs of boy bands. No matter how much you might try to avoid them, you can't, because these songs are everywhere. Consequently, the words are subtly drilled into your head and the next thing you know, you find yourself unconsciously singing along to the songs when they play on the radio.


So regardless if you were paying attention or not, there's a lot of new information from this past year trapped inside your brain. Here are just some of the things we collectively learned in 2012:



Dean Obeidallah

Dean Obeidallah




1. Mitt Romney had binders full of women


During the second presidential debate, Romney shared with us that when he was governor of Massachusetts, he had binders filled with information about women he was considering hiring. (When I was a teenager, I, too, had binders full of women. But mine I hid under my bed so my mom wouldn't find them.)


2. We picked up some Korean


We're not fluent yet, but thanks to the Korean pop singer PSY and his song "Gangnam Style," we all learned a few Korean words. And because of the song's ubiquitous music video -- which broke the record as the first video to get more than 1 billion views on YouTube -- some of us even have a vague idea of how to do his famous "horse dance."


3. Women love to read "porn"


The runaway hit book, "Fifty Shades of Grey," created a sensation across the country as women -- many over 30 years old -- bought this sexually provocative book, thus coining the term "mommy porn." In contrast, most men are waiting for the movie because we are more traditional in our "porn" tastes.


4. Poultry can be a political tool


Fast food chain Chick-fil-A went from just serving chicken to serving a political message as the head of the company announced publicly that he opposed marriage equality. Consequently, ordering a chicken sandwich at this chain came with a side dish of right-wing politics.


5. Some people talk to chairs


Clint Eastwood taught us at this year's Republican National Convention that you can have a full conversation on national television with your furniture. Hey, Clint made it OK for you to have a conversation with your couch or end table.


6. "James Bond" met the "The Real Housewives"


CIA Director David Petraeus resigned from his job because his extramarital affair was discovered. This is especially shocking because Petraeus' job as the nation's top spy chief was to keep secrets.


7. Cliffs are not just in nature


As we get closer to a precipitous "fiscal cliff" -- a term more overexposed than "Gangnam Style," it seems -- we have all learned that Congress has truly earned its low approval rating -- any lower and certain infectious diseases may become more popular than Congress.


8. What's the big deal with silver?


U.S. Olympian McKayla Maroney made it clear at the London Olympics that she was not impressed by winning the silver medal with her famous "I'm not impressed" face.


9. The way to reduce gun violence is more guns


At least this is what we were told by NRA's Vice President Wayne LaPierre in December as he called for armed guards to be placed in each of the roughly 100,000 public schools in the country.


10. Reality stars are not just for dysfunctional adults


Child star Alana "Honey Boo Boo" Thompson proved that children can be just as self-absorbed and horribly demanding as adult reality show stars.


11. Calendars are not always reliable


The fact you're reading this means that the Mayan apocalypse did not come to pass. That's good news. The bad news is that I now have to pay late fees on the credit cards I didn't pay because I thought there was a chance the Mayans were right.


12. America is the best democracy money can buy


This year's presidential election saw roughly $2 billion spent by the two campaigns and their supporters. That's more than the annual GDP of numerous countries.


You probably recalled more of these things than you guessed you would. While old acquaintances should not be forgot, the good news is that we will likely soon forget the details of the more inane lessons of 2012. Of course, the bad news is that they may be replaced by even more ridiculous ones in 2013.


Follow us on Twitter @CNNOpinion


Join us on Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Dean Obeidallah.






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Nine killed in Oregon tour bus crash

Updated 9:09 p.m. ET



LA GRANDE, Ore. A tour bus careened through a guardrail along an icy Oregon highway and several hundred feet down a steep embankment Sunday, killing nine people and injuring more than 20 others, authorities said.

The charter bus carrying about 40 people lost control around 10:30 a.m. on the snow- and ice-covered lanes of Interstate 84, according to the Oregon State Police.

The bus came to rest at the bottom of a snowy slope. More than a dozen rescue workers descended the hill and used ropes to help retrieve people from the wreckage in freezing weather. The bus driver was among the survivors, but had not yet spoken to police because of the severity of the injuries the driver had suffered.

Lt. Greg Hastings said the bus crashed along the west end of the Blue Mountains, and west of an area called Deadman Pass. Stretches of highway in the rural and agricultural area of east Oregon tend to be icy in winter months.

The bus slid down the hill and landed upright, with little or no debris visible around the crash site.

St. Anthony Hospital in Pendleton treated 26 people from the accident, including some who were treated and then transported to other medical facilities, said hospital spokesman Larry Blanc.

In addition to the people who were transferred from St. Anthony to La Grand and Hermiston, Ore., and Walla Walla, Wash., Hastings said. Others were taken directly to hospitals further away, including Boise, Idaho, and Portland, Ore.

I-84 is a major east-west highway through Oregon that follows the Columbia River Gorge.

Umatilla County Emergency Manager Jack Remillard said the bus was owned by Mi Joo travel in Vancouver, B.C., and state police said the bus was en route from Las Vegas to Vancouver.

A woman who answered the phone at a listing for the company confirmed with The Associated Press that it owned the bus and said it was on a tour of the Western U.S. She declined to give her name.

A bus safety website run by the U.S. Department of Transportation said Mi Joo Tour & Travel has six buses, none of which have been involved in any accidents in at least the past two years.

The bus crash was the second fatal accident in Oregon on Sunday morning due to icy conditions. A 69-year-old man died in a single-vehicle rollover accident. CBS affiliate KOIN-TV in Portland reports both the 26-year-old driver, who is expected to survive, and the deceased passenger were wearing safety restraints.

Read More..

Hillary Clinton Hospitalized With Blood Clot


gty hillary clinton jt 121209 wblog Hillary Clinton Hospitalized With Blood Clot

(MICHAL CIZEK/AFP/Getty Images)


By DANA HUGHES and DEAN SCHABNER


Secretary Hillary Clinton was hospitalized today after a doctors doing a follow-up exam discovered a blood clot had formed, stemming from the concussion she sustained several weeks ago.


She is being treated with anti-coagulants and is at NewYork-Presbyterian Hospital so that they can monitor the medication over the next 48 hours, Deputy Assistant Secretary Philippe Reines said.


Her doctors will continue to assess her condition, including other issues associated with her concussion. They will determine if any further action is required, Reines said.


Clinton, 65, originally fell ill from a stomach virus following a whirlwind trip to Europe at the beginning of the month, which caused such severe dehydration that she fainted and fell at home, suffering a concussion. No ambulance was called and she was not hospitalized, according to a state department official.


The stomach virus had caused Clinton to cancel a planned trip to North Africa and the United Arab Emirates, and also her scheduled testimony before Congress at hearings on the attack on the U.S. consulate in Benghazi, Libya.


According to a U.S. official, the secretary had two teams of doctors, including specialists, examine her after the fall.  They also ran tests to rule out more serious ailments beyond the virus and the concussion. During the course of the week after her concussion, Clinton was on an IV drip and being monitored by a nurse, while also recovering from the pain caused by the fall.


Medical experts consulted by ABC News said that it was impossible to know for sure the true nature or severity of Clinton’s condition, given the sparse information provided by the State Department. However, most noted that the information available could indicate that Clinton had a deep venous thrombosis,which is a clot in the large veins in the legs.


“A concussion (traumatic brain injury) in itself increases risk of this clot. Likely the concussion has increased her bed rest,” said Dr. Brian D. Greenwald, Medical Director JFK Jonson Rehabilitation Center for Head Injuries. “Immobility is also a risk for DVT. Long flights are also a risk factor for DVT but the recent concussion is the most likely cause.


“Anticoagulants are the treatment,” he said. “If DVT goes untreated it can lead to pulmonary embolism (PE). PE is a clot traveling from veins in legs to lungs which is life threatening. Many people die each year from this.


“Now that she is being treated with blood thinners her risks of PE are decreased,” he said. “Blood thinners carry risk of bleeding but are common and can be safely used.”


Dr. Allen Sills, associate professor of Neurological Surgery at Vanderbilt University Medical Center, said it was most likely that the clot was not located in Clinton’s brain, since she is being treated with anticoagulants.


“This is certainly not a common occurrence after a concussion, and is most likely related to either inactivity or some other injury suffered in the fall,” he said.


Dr. Neil Martin, the head of Neurovascular Surgery at the University of California, Los Angeles, Medical Center, said blood thinners are often given for blood clots in the legs, and it is “very unusual” for anticoagulants to be given for blood clots in the head.


But he cautioned about speculating too much about Clinton’s condition before more information is available.


“If we don’t know where it is, there is the possibility of several different indications,” he said. “I don’t know if there is any connection between what she’s got now and the concussion. All I can tell you is, at this point, it’s almost impossible to speculate unless we know what’s going on there.”

Read More..

Today on New Scientist: 28 December 2012







Best videos of 2012: Rare view of Challenger tragedy

Watch a rare amateur video of the Challenger explosion, our most-viewed video of the year



Strong jet stream super-charged US Christmas storms

Record snowfall and dozens of tornadoes snarled holiday travel as a powerful winter storm plowed across much of the US, while rainstorms battered the UK



2012 review: The year in life science

The year's biggest stories in life science, including James Cameron's descent into the Mariana trench and efforts to break into Antarctica's buried lakes



Superstorm lessons for adapting to climate change

As the post-Sandy rebuild gets under way, coastal cities around the world will be watching



Best videos of 2012: First MRI movie of childbirth

Watch a unique view of a baby's birth, at number 2 in our countdown of the year's top science videos



Fleadom or death: Reviving the glorious flea circus

The parasite-based sideshows were almost done for by the domestic vacuum cleaner - but they are bouncing back, finds Graham Lawton



Approval for gene-modified salmon spawns controversy

Apparently months late, US regulators have declared genetically engineered fish safe to farm and eat, but final approval could be some way off



Best videos of 2012: New aircraft flies inside out

Watch a novel flying machine use a unique mechanism to propel itself, at number 3 in our countdown of the top videos of the year



2012 review: The year in technology

The year's biggest stories in technology, including Kinect devices that may spot signs of autism and controlling a robot by the power of thought



Superdoodles: The science of scribbling

Far from being a distraction, doodling has an important purpose - and you can harness it



2013 Smart Guide: Wave goodbye to the mouse

The Leap, a 3D motion control device set to launch next year, will let you control your computer with touch-free hand and finger movements





Read More..

Italy upbeat at end of 2012 after year of market tension






ROME: Italy is ending 2012 on an upbeat note, with renewed financial market confidence and optimism among analysts that the worst of the financial crisis is over, despite expectations of political uncertainty in the run-up to a general election in February.

The Treasury's borrowing rates were slightly higher at short, medium and long-term debt auctions last week, but were well below levels seen at the end of 2011, when Prime Minister Mario Monti took over from Silvio Berlusconi as Italy teetered on the brink amid the eurozone debt crisis.

In late November 2011, the country was paying a 7.56 per cent rate for its benchmark ten-year bonds, sparking widespread concerns it might have to ask for a bailout.

On Friday, that rate stood at 4.48 per cent.

As 2012 draws to a close, "even if public debt has breached the two trillion euros mark, Italy's ability to finance itself is no longer in doubt," said Enrico Marro in Italy's Il Sole 24 Ore financial daily.

"For 2013, optimism reigns," he concluded.

The turnaround is principally the result of two factors: the European Central Bank's promise to buy sovereign debt issued by eurozone member states without limit if necessary if they meet certain strict conditions, and Monti's decisive reforms which have restored Italy's credibility internationally.

Experts have forecast a couple of months of volatility on the markets in the lead up to the February 24 and 25 elections, but the worst appears to be over.

Italian bank Intesa Sanpaolo said "the fever should drop off in 2013 compared with 2012."

The bond spread -- a key measure of the difference between Italian and German 10-year bond yields -- has also dropped sharply over the year, dipping below 300 basis points in early December from double that figure at its peak.

While European leaders congratulated Monti on restoring calm to the markets, Berlusconi's announcement at the start of December that he is running again for prime minister sparked panic and the spread began to inch up again.

The media magnate has dismissed the spread measure as "a trick and an invention" used to bring down his government.

Investors will be watching closely in the coming weeks to see if Berlusconi's large-scale media campaign for re-election wins him potential votes from Italians tired of Monti's austerity packages and record unemployment levels.

Renewed confidence in financial markets contrasts sharply with official forecasts for economic growth over the coming year, as Italy struggles to pull itself out of a recession.

Despite Monti's "Grow Italy" plan, the economy is not expected to return to growth before the end of 2012 or the beginning of 2014.

"Business and household sentiment does not appear to have benefited from the easing market tension," Intensa Sanpaolo said.

The government has forecast a 0.2 per cent contraction of the country's gross domestic product in 2013 -- an outlook considered overly optimistic by Italy's business association Confindustria, which expects GDP to shrink by 1.1 per cent next year.

One figure is on the rise however: the number of people on Twitter following Monti, who is drumming up support for a reform-led electoral campaign.

Monti, who resigned last week after Berlusconi's People of Freedom party pulled support from the government, has said he is keen to lead the country again after the elections -- a message welcomed by the markets, European leaders and Italy's Catholic Church alike.

- AFP/ck



Read More..

Fiscal cliff: Nation on edge






STORY HIGHLIGHTS


  • NEW: "We've been in discussions all day and they continue," Sen. McConnell says

  • McConnell and Harry Reid should update their caucuses, perhaps with an agreement, on Sunday

  • There will be major cuts and widespread tax increases without a deal by year's end

  • Some congressmen say Americans have a right to be frustrated by the stalemate




As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNNiReport to share your video.


Washington (CNN) -- The Senate's top Democrat and Republican are working this weekend to forge a compromise to prevent the country from going over the fiscal cliff, the combination of sweeping spending cuts and widespread tax increases that will otherwise take effect in days.


By mid-day Saturday, Senate aides from both parties reported no major developments in the talks. That may not be a bad sign, as a Democratic aide earlier said his side would probably leak a Republican offer it considers "laughable" but would keep it private if the proposals were reasonable.


Senate Minority Leader Mitch McConnell did tell reporters early Saturday evening, "We've been trading paper all day, and the talks continue into the evening."


"We've been in discussions all day and they continue," the Kentucky Republican said. "We'll let you know as soon as we have some news to make."










The Senate aides said they expect no details will be divulged until Sunday afternoon, when McConnell and Senate Majority Leader Harry Reid, D-Nevada, will update their Republican and Democratic caucuses, respectively.


House Republicans will get together sometime early Sunday night, according to a note sent to legislators and staffers. House Speaker John Boehner has called on the Senate to go first, and then his chamber -- which reconvenes Sunday -- will act.


Early Friday evening after a meeting involving President Obama, congressional leaders and top administration officials, the president said he was "modestly optimistic" the Senate leaders would reach an agreement. At the same time, he conceded, "Nobody's going to get 100% of what they want."


The weekend talks are being led by the two senators' chiefs of staff -- David Krone for Reid, and Sharron Soderstrom for McConnell -- communicating largely over the phone and by e-mail, aides said.


Staffers for Boehner, the top man in the Republican-led House of Representatives, won't directly take part in the negotiations, but they'll be kept informed by McConnell's staff, a GOP aide said. From the White House, Obama has been in close contact with negotiators, a senior administration official said Saturday.


Democrats believe Republicans should make the "first move" -- basically by saying how they want to alter the president's proposal, which calls for tax rates to stay the same for all annual family income below $250,000. The expectation is Republicans will try to raise that income threshold to $400,000 and push to keep estate taxes low; Democrats said they might be open to one such scenario, but not both.


If the two sides don't agree on a bill over the weekend, Obama said he wants his latest proposal to be put up for a vote in both the Senate and House. He predicted his plan -- which, in addition to his tax rate proposal, would extend unemployment benefits and "lay the groundwork" for deficit reduction -- would pass in both chambers with bipartisan support.


As members of Congress and their staffs talk, Obama will make his case to the public by appearing Sunday on NBC's "Meet the Press," his first appearance on a Sunday political talk show in three years. The appearance follows his weekly radio address, given Saturday, in which he said it was Republicans' "prerogative" to "let this tax hike hit the middle class," while Republican Sen. Roy Blunt of Missouri countered by accusing Democrats of spending "months drawing partisan lines in the sand."


Reid said, at the very least, that he'd prepare legislation that includes elements favored by Obama for a vote by Monday. Still, he insisted he'd first work with his GOP colleagues.


"I look forward to hearing any good-faith proposals Sen. McConnell has for altering this bill," the Nevada Democrat said.


If no legislation passes both chambers and therefore isn't signed by the president by year's end, the fiscal cliff will go into effect -- something economists warn could trigger a recession.








The lack of political movement thus far, and lack of confidence Washington politicians can get anything done with so little time left, has spurred consumer confidence to sag and stock market values to sink.


Some, like Democratic Sen. Chuck Schumer of New York, expressed cautious optimism Friday that the looming deadline, and the key players renewed engagement, would spur a deal. But others were less optimistic, with Democratic Rep. Jim Moran of Virginia saying Saturday that "I don't think we are going to be able to reach a deal, no matter how small it might be."


Republican Sen. Bob Corker of Tennessee derided the entire process so far as "a total dereliction of duty on every level."


"I've been very surprised that the president has not laid out a very specific plan to deal with this," he said on CBS "This Morning."


"But candidly, Congress should have done the same. And I think the American people should be disgusted."


The principal dispute continues to be over taxes, specifically Democrats' demand to extend most tax cuts passed under President George W. Bush while allowing higher rates of the 1990s to return on top income brackets. During his re-election campaign, Obama said doing so would protect 98% of Americans and 97% of small businesses from tax hikes.


Republicans have opposed any increase in tax rates, and Boehner suffered the political indignity last week of offering a compromise -- a $1 million threshold for the higher rates to kick in -- that his GOP colleagues refused to support because it raised taxes and had no chance of passing the Senate.


Obama and Democrats have leverage, based on the president's re-election last month and Democrats' gains in the House and Senate in the new Congress. In addition, polls consistently show majority support for Obama's position on taxes, and Democrats insist the House would pass the president's plan with Democrats joined by some Republicans if Boehner allowed a vote on it.


However, conservative activist Grover Norquist has vowed to back primary challenges against Republicans who violate his widely signed pledge not to raise taxes. Even if a deal is reached, Norquist has predicted yet more budget showdowns every time the government needs additional money to operate.


The two sides seemingly made progress early last week on forging a $2 trillion deficit reduction deal that included new revenue sought by Obama and spending cuts and entitlement changes desired by Boehner.


Boehner appeared to move on increased tax revenue, including higher rates on top income brackets and eliminating deductions and loopholes. But his inability to rally all House Republicans behind his plan raised questions about his role and what comes next.


The saga has fueled disdain for politicians by many Americans. Such contempt is deserved, said Rep. Steven LaTourette, an Ohio Republican, who is retiring from Congress.


"I think America should be embarrassed by its leadership in D.C.," he told CNN on Friday. "The fact that we have been unable to do things, and instead worried about our next elections. ... I think it's sinful."


What happens to the economy if we go over the cliff?


CNN's Jessica Yellin, Tom Cohen, Dana Bash, Deirdre Walsh, Lisa Desjardins and Kevin Liptak contributed to this report.






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