Too Much (or Little) of a Good Thing?

Portugal is a model of austerity. In exchange for a 78 billion euro bailout, the country agreed to European Union and International Monetary Fund demands, slashing spending and raising taxes.

But there are reports that Portugal's debt to GDP ratio has been growing. The ratio was 107 percent at the time of the bailout and will reach 118 percent by next year, because Portugal's economy is shrinking.