Sleaze shocks shake Brazilian politics

Brazil’s ruling politicians have been shaken by a scandal involving prostitutes, suitcases full of lobbyists’ cash and an apparent violation of bank secrecy laws that brought down the finance minister and again raised questions about the leadership of President Luiz Inacio Lula da Silva.

And while Silva quickly named a replacement yesterday who tried to contain the damage by promising economic stability, analysts worry that the downfall of Antonio Palocci, the architect of Brazil’s economic recovery, may prompt the president to impose costly populist policies in order to get re-elected this year.