eurocrisis infecting core The European situation spun more deeply into crisis this week. Interest rates on 10-year Italian government bonds crossed the spooky 7% barrier, yielding 5 points more than comparable German bonds. A year ago, Italian bonds yielded 4.3%, less than 2 points above German rates. In the jargon of the markets, this blowout in Italian spreads is a sign of investor panic. On paper, Italy shouldn’t be so bad off. Its budget is in decent shape, and Italians have plenty of domestic savings, more than enough to cover the government’s financing… Read More