Euro troubles–it’s not just the periphery of Greece and Portugal anymore (again)

So far, global financial markets are willing to overlook deepening debt troubles in Greece and Portugal. After all, these are countries on the “periphery” of the EuroZone and not in the “real” EuroZone. Today’s very gloomy report from the Bank of Italy lowering the projected growth rate for the Italian economy argues, however, that the EuroZone core is in trouble too.